Markets
Ethereum, Altcoins Could ‘Recover Quickly’ After FOMC Meeting, Trader Predicts
June 11, 2024 3:14 pm | 2 minutes reading
Crypto Analyst Michael van de Poppe highlighted the continued decline in altcoin prices, attributing it to market weakness and upcoming economic events.
What happened: Michaël van de Poppe tweeted that altcoins are experiencing significant declines ahead of the next Federal Reserve meeting, which is an important factor. He mentioned that altcoins have corrected substantially over the past week due to several reasons including general market weakness and no conclusion on the Ethereum (CRYPTO: ETH) ETF.
He too observed that the “Roaring Kitty” saga impacted altcoin prices, with some falling more than 20%. Van de Poppe emphasized that the real reason for the correction is the upcoming CPI data release and the FOMC meeting on Wednesday, which often leads to downward momentum in crypto markets.
Van de Poppe explained that a strong dollar and continued quantitative tightening (QT) are not favorable for altcoins. He stated: “The last few times Jerome Powell has spoken, crypto markets have seen a substantial correction.” He also mentioned that markets tend to take risks ahead of such events.
Read too: Top Crypto Analyst Shuffles Altcoin Portfolio Ahead of Ethereum ETF: Here’s What He Transformed
Why this matters: Van de Poppe’s insights highlight the potential for further declines in altcoin prices due to economic factors. He noted that the unemployment rate began to accelerate and economic data weakened, while the The European Central Bank (ECB) has already started cutting rates.
The trader also highlighted that the Ethereum ETF will likely be approved soon, which could impact the market. He expressed optimism about a possible reversal, stating, “Following the previous FOMC meetings, markets recovered quickly.”
He mentioned that Ethereum and Bitcoin (CRYPTO: Bitcoin) recorded significant gains following previous meetings.
Van de Poppe personally mentioned being all-in on altcoins and expects a positive outcome from the FOMC and Jerome Powell’s speech resulting in strength in the markets. The commercial launch of Ethereum ETFs will be an additional factor in the coming weeks.
What is the next: The influence of Ethereum as an institutional asset class expected to be thoroughly explored at Benzinga’s next event Future of digital assets event on November 19th.
Read next: Altcoins Drop 70% Against Bitcoin: Here’s Why They Just Can’t Move On
This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
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