We are approaching the last week of June, and the cryptocurrency market is still showing signs of deterioration. Ethereum (ETH) and the other top ten altcoins dropped from 3 to 10% last weekend, resulting in a loss of approximately $25 billion for the whole altcoin market. Nonetheless, experts believe this might be the last dip before new money enters the altcoin market again.
Rotation of Capital Into Altcoin To Start Soon
Michael van de Poppe, a well-known cryptocurrency analyst, forecasts that the cryptocurrency decline will end. Poppe recently tweeted, “The last few weeks of the altcoin downtrend are ending.” The significant capital rotation should begin the following week or the week after.
Speaking confidently about his stance on cryptocurrencies, Poppe anticipates that the risk-ON phase will start shortly. According to analyst van de Poppe, investors are preparing for a possible positive rotation as the cryptocurrency market approaches the end of its current downturn.
Additionally, Poppe stated that the current state of the altcoin market is dire since the BTC valuation of various altcoins has dropped to all-time lows. However, he notes that some altcoins rose as much as 300–500% the last time this occurred.
This chart explains everything. Since all altcoins’ BTC valuations are falling to all-time lows, the sentiment around cryptocurrencies is atrocious.
This chart explains it all. The #Altcoin sentiment is terrible currently, as the BTC valuations of all the altcoins are reaching new lows.
The last time this happened:$SOL went +500%$FET went +650%$RNDR went +300%
This time, altcoins are likely to do the same. pic.twitter.com/KYpzPqwDKV
— Michaël van de Poppe (@CryptoMichNL) June 22, 2024
Analyst van de Poope also provided an upbeat prediction for adults in the future. He pointed out that the alt market capitalization has dropped by 50% from its peak in 2021, and the most recent correction has caused it to drop by an additional 30%.
Poppe anticipates a potential 100% rally in altcoins as the downturn draws to a close, which might follow the trend of Bitcoin.
Breaks Within the Cryptocurrency Market
This past week, I experienced the second-worst weekly decline in the cryptocurrency market for 2024. This is primarily due to the declining interest in Bitcoin ETFs and the ambiguous money policy.
According to statistics published by Bloomberg, the top 100 digital assets experienced a 5% correction last week. With interest rates close to two-decade highs, these fissures in the cryptocurrency market are related to uncertainty regarding the Fed’s intention to shift toward rate decreases.
