Why are altcoins crashing? Let's figure it out! 💥

Oh, the cryptocurrency world, as always, does not let us get bored! It seemed like the week was promising to be successful, and then bam - and Bitcoin (BTC) falls to its lowest price in the last four weeks, falling by more than 2% to $65,100. Well, here we go... Over the past seven days, BTC has lost 7.5%. And when Bitcoin goes crazy, altcoins follow suit.

Let's figure out what went wrong with the help of our favorite cryptanalyst, Mikael van de Poppe, known as "Crypto Mikael." He estimated that over the past two weeks, the main altcoins have fallen by more than 40%, and on-chain ones by as much as 70%! 💣

So why are altcoins crashing so hard?

Uncertainty Around Ethereum Spot ETFs

Well, first of all, there is that confusing situation with Ethereum spot ETFs in the US. Although the SEC appears to have approved these ETFs, they have not yet been listed. In general, so far it’s neither here nor there, and the market is nervous because of this.

Mikael explains that the approval process includes Forms 19b-4 (technical details and SEC compliance) and Forms S1 (listing on exchanges). Due to the delay in listing, we are seeing this downward pressure. But once Ethereum spot ETFs do list, it could attract a ton of institutional money and recognition of Ether as a commodity similar to Bitcoin.

Macroeconomic factors

Next is macroeconomics. It seems that low inflation in the United States initially gave hope that the Fed would stop raising rates, but their hawkish position again led everyone into doubt. Altcoins love low rates and high liquidity, but this is not the case now. The strong dollar, fueled by the ECB’s rate cut, is also putting pressure on the cryptocurrency.

Possible reversal?

But it is not all that bad. Mikael still hopes for a market reversal in the next 1-2 weeks. The key to this is Bitcoin's dominance. If its dominance begins to decline, altcoins could surge higher. 🚀

Key Support Levels

Mikael also notes important support levels for Ether relative to Bitcoin. They could be the key to a turnaround. But don't forget about factors like dollar strength and US Treasury yields, which also play a role.

So, to summarize: altcoins are in trouble, but there is hope for the best. We will monitor developments! 😉

Who knows, maybe tomorrow everything will change. Stay tuned!

#Green_lamp #Bitcoin #BTC🔥🔥🔥🔥🔥 $BTC