Cryptocurrency expert Michaël van de Poppe recently shared a positive outlook on the future of altcoin markets. In an update to his followers on the X platform, van de Poppe analyzed the impact of recent weak economic data in the United States on the crypto sector.
According to van de Poppe, the disappointing employment data in the US, which showed an increase in unemployment to 3.9% and average hourly earnings below expectations, could prompt the Federal Reserve to implement monetary stimulus measures.
“Negative economic data leads to a decline in the US dollar index (DXY). This, in turn, increases the likelihood of quantitative easing (QE) and rate cuts, which raises the risk in traditional assets. As a result, Bitcoin is back above $61,600, and the altcoin bull market began after the Federal Open Market Committee (FOMC) meeting,” explained the analyst.
Van de Poppe also forecasted a period of consolidation for altcoins before potentially reaching new all-time highs. He projected that the total market capitalization of altcoins could stabilize between $880 billion and $920 billion, serving as a support level before a future bull run. “The altcoin market capitalization has likely reached its bottom during this correction. I believe it will stabilize between $880 billion and $920 billion before embarking on a journey towards new all-time highs,” he stated.
Furthermore, van de Poppe predicted the return of retail investors to the cryptocurrency market, driven by significant gains in altcoins. “Retail investors are not yet in the market, despite Bitcoin nearing its all-time highs. They are expected to return after this summer when altcoins start to gain momentum. Once they rotate their holdings, they will come back to the market. This means there is still an opportunity to get ahead,” commented the analyst.
At the time of publication, the price of Bitcoin was quoted at $64,039.68, representing a 0.4% increase in the last 24 hours.
Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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