According to renowned cryptocurrency analyst Mikael van de Poppe, the rise of altcoins most often occurs during the period of bitcoin consolidation that precedes new highs. In a fresh video, the analyst looked at the possible impact of bitcoin-ETFs on the altcoin market.
Van de Poppe compared the current altcoin dynamics with historical trends, focusing on the price movement of Etherium before the bullish rise in 2016. By analysing historical data, he demonstrated that Etherium's rise in 2016 began after the completion of Bitcoin's initial surge before the subsequent halving. The analyst also revealed that after the initial rally, Etherium went sideways for a few months before beginning a major bull rally following bitcoin's 2016 halving. Van de Poppe suggests that the current cryptocurrency market cycle could repeat the 2016/2017 scenario.
Summarising his explanation, the analyst emphasised that the volatility in the bitcoin and altcoin markets stems from the movement of capital between both ecosystems. He explained that altcoins such as Efirium often rise when bitcoin comes out of active growth, reallocating funds from bitcoin to Efirium and other eco-systems. The analyst also opined on the likelihood of an ETF for Etherium being approved alongside an ETF for bitcoin. He suggested that this would lead to simultaneous capital inflows into both of these ecosystems, which he believes would be a boost for altcoins following the expected inflows into the Efirium ecosystem.
In summary, van de Poppe believes that seasonality, ETFs and valuations are creating favourable conditions for a potential altcoin rally to form. He highlights a potential 60 per cent rise in Etherium before reaching resistance similar to the $48,000 level for bitcoin.
