Markets
Legendary Crypto Analyst Claims Altcoin Could Bottom Today, Be Alert!
The cryptocurrency market is experiencing a notable decline today, with many digital currencies losing their recent gains. Bitcoin (BTC), the pioneering cryptocurrency, fell to $66,700. Ethereum (ETH) dropped to $3,523, Solana (SOL) to $152 and Ripple (XRP) to $0.48.
Prominent crypto analyst Michael van de Poppe suggests that today could be crucial for altcoins, potentially marking the beginning of a turnaround. This forecast comes amid significant economic events, including the upcoming release of the Consumer Price Index (CPI), the Federal Open Market Committee (FOMC) meeting and the Federal Reserve’s interest rate decision.
Economic Events to Watch
Van de Poppe believes that these important economic events could significantly impact markets, particularly the cryptocurrency sector. Historically, he notes, cryptocurrency prices tend to decline before major economic announcements.
Despite recent events like the Roaring Kitty event and last week’s GameStop correction, which have not positively influenced price action, van de Poppe remains optimistic. He points out that previous FOMC meetings have often led to significant increases in the value of both Bitcoin and Ethereum, providing a glimmer of hope during challenging market conditions.
CPI release and FOMC decision
The day’s main events include the IPC data release and the FOMC rate decision. CPI data, which reflects changes in the prices of goods and services, is closely monitored by the FOMC to assess inflation levels and potential interest rate adjustments.
Van de Poppe describes market expectations for the CPI data:
- CPI Y/Y: 3.4% expected
- CPI M/M: 0.1% expected
- Core CPI Y/Y: 3.5% expected
- Core IPC M/M: 0.3% expected
The FOMC rate decision, scheduled for 8pm CET, is a crucial moment for the market. Van de Poppe emphasizes the importance of Federal Reserve Chairman Jerome Powell’s speech, which could provide valuable information on future monetary policy decisions.
He predicts that a neutral stance from the FOMC could trigger positive reactions, especially in the crypto market.
Recommended care
Despite the potential for market volatility, van de Poppe advises caution. He suggests closely monitoring the price action of gold, the US dollar and Treasury yields for signs of market sentiment.
As the day progresses, all eyes will be on the release of CPI data and the subsequent FOMC meeting, events poised to shape the crypto market’s trajectory in the coming days.
Read too: May US CPI may fall to 3.3%; BTC price rises to $69K
Will today’s events trigger a crypto turnaround? Let us know your predictions!