This is why altcoin prices fell last week
Crypto analyst Michael van de Pope presented an analysis of the recent altcoin price decline and shared his views on the future of the market.
He noted that major altcoins have fallen more than 30-40% over the past two weeks, and others by even more. The analyst highlighted the impact of Bitcoin's market dominance on the altcoins , suggesting that a reversal in this metric could signal another rally for altcoins.
Basic factors
According to him, a major factor contributing to the current decline in the market is the uncertainty surrounding the spot Ethereum US ETFs. Although these ETFs received partial approval by the SEC, they are not yet listed, causing confusion and negatively impacting market sentiment.
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Why Bitcoin is a better investment than goldMichael detailed the approval process, which includes 19b-4 forms (covering technical specifications and SEC compliance) and S1 forms (relating to IPOs). It is the delay in the listing of these ETFs that is believed to have increased pressure on the market.
The analyst believes that once these spot ETFs are listed, Ethereum could be classified as a commodity, similar to Bitcoin. This classification could lead to increased institutional investment and wider adoption of Ethereum and others cryptocurrencies .
He also pointed out that lower-than-expected US inflation initially suggested a possible halt in interest rate hikes by the Federal Reserve, but the Fed's continued hawkish stance has kept the market uncertain. Altcoins perform well in a low interest rate, high liquidity environment, which is currently lacking.
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El Salvador plans to introduce Bitcoin into the banking systemCould we see a recovery?
Despite the current negative outlook, there are indicators of a potential market recovery. Van de Pope hopes to see a turnaround in the market within the next one to two weeks. He highlighted the significance of Bitcoin's dominance over altcoins, noting that these tokens are underperforming due to the strong performance of Bitcoin against this metric.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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