Analyst Michael Poppe from MN Consultancy discussed the current state of the cryptocurrency market and provided forecasts for developments in the fourth quarter.

Analysis of Bitcoin's Current State

Michael Poppe noted that Bitcoin price has been stuck in a narrow range for over 200 days, indicating a bearish market sentiment. He also mentioned that the Fear and Greed Index has improved compared to a few months ago. Poppe expects significant events to occur in Q4, referring to 'Uptober' from October 7 to 11. However, he expressed caution regarding current Bitcoin prices, which range between $62,000 and $66,000.

Ethereum’s Dependency on Bitcoin

According to Poppe, Ethereum is on the path to improvement due to lower fees, staking, and DeFi development. However, until Bitcoin breaks crucial levels, ETH will continue to trend downwards. Poppe explained that the crypto market can expect a reversal when Bitcoin achieves a breakout, similar to previous consolidation periods in 2016 and 2002.

Impact of the Federal Reserve on the Crypto Market

Poppe noted that Ethereum's current decline is linked to the actions of the Federal Reserve. The recent 50 basis points rate cut may aid Ethereum, but further cuts are unlikely due to positive economic data. Poppe anticipates that the November Fed meeting could introduce adjustments if economic indicators worsen. He also mentioned the potential impact of FTX's plans to repay customers in cryptocurrencies on the market.

MN Consultancy expert Michael Poppe expressed cautious optimism regarding the development of the cryptocurrency market in Q4, emphasizing the importance of monitoring Federal Reserve actions and Bitcoin market changes.