Crypto analyst Dan Gambardello examined current altcoin trends amid rising global liquidity and legislative developments.
Current Crypto Market Situation
In a recent analysis, Dan Gambardello compared the present crypto market conditions to August 2020, when altcoins lagged behind traditional markets before catching up with monetary expansion trends. While traditional markets reached record highs, cryptocurrencies were in a consolidation phase.
Legislative Changes and Their Impact
Following recent positive comments from Donald Trump about Bitcoin and cryptocurrencies, Dan Gambardello noted that July has been a pivotal month for the market with the signing of the Genesis legislation. He quoted White House crypto czar David Sachs, emphasizing the significance of this time for the crypto market. However, despite favorable regulatory steps, altcoin prices continue to remain over 200% from their all-time highs.
Risk Models and Predictions for Altcoins
Gambardello highlighted the M2 liquidity index and its divergence from current altcoin performance patterns. This divergence was also seen in August 2020 preceding significant crypto market rallies. Risk models indicate that an altcoin bull market has yet to begin, while the current market positioning shows strong potential for upward movement if the crypto market aligns with global liquidity trends.
The assessment of the crypto market illustrates significant legislative changes and current market models that might influence the future of altcoins and the overall market state.
