The price of Bitcoin experienced a decline for the second consecutive day on May 1, dropping to $56,552. Recent days have seen an improvement in investor sentiment with green candles appearing. Although there are still uncertainties, the movement of Bitcoin away from the $60,000 support level reduces the risk of significant losses. Insights from expert analysts in the market shed light on the current situation.

Exploration of Cryptocurrency Market Bottom

At the time of writing, Bitcoin was being bought at $64,343, with altcoins showing slight gains. A reputable analyst, Van de Poppe, shared his insights on the potential market bottom in the latest analysis. He suggests that the crypto market has reached the bottom after the disappointing U.S. labor market data for April.

Despite a slight decrease in inflation, the rise in unemployment to 3.9% and lower than expected hourly earnings are positive developments in the macroeconomic landscape. These factors could drive risk markets forward even though inflation has weakened. Poppe speculates that the Federal Reserve will likely need to implement monetary stimulus measures to support the employment sector.

“Poor economic data -> Decline in DXY (U.S. dollar index) -> More QE (quantitative easing) and interest rate cuts -> Rally in risky assets.

Bitcoin has risen above $61,600.

The FOMC played a key role in identifying the market bottom, marking the lowest point. The altcoin market is gearing up for a surge.”

Analysis on Altcoin Market

Considering the market conditions, Michael believes that the bottom has been established, and this could pave the way for significant rallies in altcoins. Observing the market values of altcoins, the analyst anticipates a substantial move post the consolidation phase.

“The overall market value of altcoins seems to have reached the correction's bottom. Following a consolidation period in the $880-920 billion range, we might witness a journey towards all-time highs.”

The analyst also noted that individual investors are likely to increase their involvement, especially as altcoins demonstrate significant growth. As altcoins show promising gains, a surge in investor activity is expected from both existing and new participants in the crypto market.

“During Bitcoin's peak, individual investors were not actively participating in the markets.

When might they re-enter?

Likely after this summer, coinciding with the rise of altcoins.

Holding altcoins, they will rejoin the market as it picks up momentum. This signals an early phase of market development.”

The article was originally published on COINTURK NEWS: Bitcoin and Altcoins Show Market Recovery Signs