19 May 2024
Popular crypto analyst Michaël van de Poppe continues to back altcoins to put up a spectacular bullish performance in the coming months. In a new X post on Saturday, the veteran analyst takes a deeper dive explaining the reasons behind his advocacy for altcoins investment ahead of a highly expected crypto bull run.
Investing In Altcoins Is The Best, Analyst Says Why
In his most recent bullish prediction on altcoins, van de Poppe begins by stating these tokens may not present as the most ideal investment especially considering that their combined value is down by 70% against Bitcoin in the last three months.
The analyst has attributed this poor performance to several factors including a delay in network updates and an extended bear market. In addition, van de Poppe also notes Ethereum’s current struggles to be a significant contributor to this market downturn.
He explains that typically the crypto bullish hype moves from Bitcoin to Ethereum, followed by tokens with big market cap, then middle-cap tokens and small-cap tokens.
However, this cycle appears to be experiencing some delay due to a bearish cloud over Ethereum, driven by uncertainty over the approval of a proposed spot exchange-traded fund (ETF) as well as its asset class.
Nevertheless, van de Poppe believes this delay to be quite temporary as he postulates that market traders are currently pricing in any potential negative effect from the denial of an Ethereum Spot ETF or the classification of the prominent altcoin as a security.
Once Ethereum embarks on a bullish course, van de Poppe predicts other altcoins to follow suit. The analyst projects that certain tokens could record a 1000% gain as seen between October 2023-February 2024, amid the hype around Bitcoin spot ETFs.
However, the analyst nudges investors to buy into the altcoin market now during the period of “lowest confidence”. He believes such an act is similar to investing in Bitcoin at $3,700 at the start of 2020, thus ensuring investors generate maximum profits in the coming bull run.
Ethereum ETF Approval In The Balance
As weeks continue to progress, the approval of an Ethereum spot ETF by the US Securities and Exchange Commission (SEC) appears highly uncertain.
This sentiment is driven by the Commission’s ongoing deliberation on whether to classify Ethereum as a security as well as a lack of dialogue between the agency and prospective issuers. The next deadline dates are for May 23/May 24, during which the SEC will respond to 2 ETF applications with many analysts expecting further delays from the Commission.
At the time of writing, Ethereum trades at around $3,123.39 reflecting a 0.53% increase in the last day.