Bullish News: Top Analyst Forecasts Altcoin Bottom Today, Market Poised For Upswing – Here’s Why
June 12 2024 - 1:00PM
NEWSBTC
In a recent social media post, renowned crypto analyst Michael Van
de Poppe shared his predictions regarding the potential bottoming
out of the altcoin market. Van de Poppe emphasized the
significance of key economic data and the upcoming interest rate
decisions from the Federal Open Market Committee (FOMC),
highlighting their potential impact on the crypto market. Altcoin
Rally Ahead? CPI Data Points To Bullish Outlook Consumer Price
Index (CPI) data revealed that US inflation had fallen to 3.3%,
lower than expectations, which he deemed bullish news for the
altcoin market. The CPI data holds particular importance as it
influences the Federal Reserve’s decision on interest rate cuts.
Related Reading: Ex-Ripple Director Explains XRP Price Slide Amid
Good News Van de Poppe explained that if the CPI data came in above
expectations, it would have led to a stronger US dollar and higher
yields. In such a scenario, the chances of a near-term rate cut
would have diminished, leading to a decline in risky assets.
Conversely, a lower-than-expected CPI reading paves the way for a
positive market reaction, as is the case today. The FOMC’s interest
rate decisions were identified as the second significant event of
the day. Following the European Central Bank’s recent rate cut,
there is speculation that the US might consider similar
measures. Van de Poppe emphasized the importance of Federal
Reserve Chairman Jerome Powell’s speech, as it could provide
valuable insights into future monetary policy, potentially
influencing market sentiments. Trading With Caution The altcoin and
crypto markets experienced notable corrections last week, led by
Ethereum (ETH), the largest altcoin in the market, with a price
drop of over 5%, with a historical negative correlation observed
during FOMC meetings and CPI releases. However, Van de Poppe
suggested that a repricing upwards could be anticipated,
potentially leading Bitcoin to approach its all-time high of
$73,700 in the coming weeks if the FOMC adopts a dovish stance.
However, caution was advised, as price action can be deceptive. In
the event of an unchanged rate decision, initial downward market
responses might occur, with the true impact unfolding later.
Related Reading: Bitcoin Price Prediction: Major Analysts Say BTC
Is Headed For 6-Digit ATH Another market expert, Adrian Zduńczyk,
offered his perspective, highlighting the tendency for prices to
retrace to previous levels with little effect on volatility
following FOMC decisions. While traders often anticipate news
releases and follow patterns, he cautioned against trading against
the Federal Reserve’s monetary policy decisions. As the altcoin
market awaits the outcome of key economic data and FOMC decisions,
analysts monitor these factors closely, anticipating a potential
reversal and subsequent market upswing. With the Ethereum ETF
seeking trading in the coming weeks, the summer months promise
renewed market momentum and a potential challenge to all-time
highs. ETH is currently trading at $3,618, experiencing a
significant surge of 4.1% in the past few hours, coinciding with
positive CPI data and heightened expectations of favorable news
from the US Federal Reserve. Featured image from DALL-E,
chart from TradingView.com
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