Despite Bitcoin's consolidation, altcoins are experiencing a downturn, erasing gains from the March crypto rally. Market analyst Michaël van de Poppe highlights several factors contributing to this bearish trend. Ethereum, a leading altcoin, has dropped 10% since May's end, with uncertainty surrounding its exchange-traded funds (ETFs). However, if spot ETH ETFs launch soon, potentially by July 2, it could significantly boost altcoins as ETH would be considered a commodity, not a security.

U.S. economic data and high inflation, hindering the Federal Reserve from reducing rates, also weigh on altcoins. Altcoins typically thrive during periods of quantitative easing and low interest rates, when global economic liquidity increases. Bitcoin dominance, currently high at 55.4%, is another significant factor.

However, with the upcoming Ethereum ETF listing, a shift from Bitcoin dominance is likely. Crypto trader 'cyclop' suggests that if previous cycles repeat, now could be the last chance to buy the dip before altcoins surge. Despite the current downturn, the market outlook remains optimistic, anticipating a potential altcoin recovery.