Altcoins

Why are Altcoin prices falling and when will they recover?

Published

7 months ago

16 June, 2024

Top 5 Altcoins That Will Hold Up Until Bitcoin Skyrockets to $150,000

Altcoin prices have noted volatile trading over the past few days, with Ethereum, Solana XRP and others noting declines. At the same time, the decline of the broader crypto market also followed a fall in the price of Bitcoin, sparking discussions about the potential reasons for the drop.

A host of macroeconomic factors and global trends could have weighed on recent sentiment recently. So here we look at the main reasons for the recent price drop.

Why are Altcoin prices falling?

Some of the main reasons behind the recent sell-off include:

Release of Bitcoin ETFs

After recording massive influxes in recent weeks, the US Spot Bitcoin ETF recorded an outflow of $200.4 million on Monday, June 11. This sudden trend reversal weighed on overall market sentiment, which could have contributed to the altcoin’s recent price drop.

The massive influx to Bitcoin ETF has so far boosted market optimism, triggering a rise in the price of Bitcoin in recent weeks. Additionally, altcoin prices also followed suit, registering significant gains, before seeing a decline compared to last week.

US Jobs Data Triggers Altcoin Decline

The last weeks US employment data The results were stronger than expected, dampening investors’ hopes for a possible accommodative stance from the US Federal Reserve. Notably, the Federal Reserve has maintained a hawkish stance so far this year with its policy rate plans, to combat searing inflation.

That said, the European Central Bank (ECB), which has also maintained a similar stance, announced a rate cut last week. Although expectations of a similar move by the US central bank also subsequently soared, labor market data dampened hopes as the market waited for more economic clarity.

Inflation, FOMC and Fed Chairman Commentary Will Impact Altcoins Performance

After last week’s dismal economic data, investors are now eagerly awaiting today’s US CPI inflation data, FOMC Interest Rate Decisions, and the press conference of Fed Chairman Jerome Powell. THE United States Consumer Price Index (CPI)

the data will provide insights into the current level of inflation in the country, a crucial factor in deciding the future of altcoin prices. Additionally, the market will also closely watch tomorrow’s US PPI data, to get further clues on inflation.

On the other hand, the FOMC’s decision on interest rates will play a crucial role in shaping the market in the coming days. Although the market expects the Federal Reserve to maintain its key rate, any other decision could impact the market. At the same time, Fed Chairman Jerome Powell’s remark will provide insight into whether the central bank’s interest rate plans may move forward.

Given this, the market seems to be taking a pause before crucial events, which could cause a scenario of increased volatility in the market. altcoin prices.

When will Altcoin prices rebound?

The broader crypto market has also seen volatile trading this year ahead of previous FOMC events. However, soon after the event, the entire market saw a strong recovery, erasing the losses recorded before the event.

Considering this, market experts anticipate a recovery in the market. altcoin prices shortly after the event. But despite this anticipation, it is also worth noting that if the US CPI data is higher than expected, it could prolong the altcoin’s current price volatility. At the same time, the Fed’s comment, especially if the central bank takes a hawkish stance, will also impact overall market sentiment.

At the time of writing, Solana Price was down 1.32% and trading at $152.67, while XRP Price fell 0.54% from yesterday to $0.484. In the sector of the same corners, Dogecoin Price plunged 1.08% to $0.1405, with Shiba Inu Price down 0.71% to $0.00002207.

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Altcoins

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Published

6 months ago

29 July, 2024

CoinFlix Staff

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Popular crypto analyst Michael van de Poppe has highlighted his altcoin portfolio approach in light of the new Ethereum ETF. In a recent Youtube videoThe analyst explained the measures he would take for this major market event.

The Ethereum ETF was listed on the stock exchange and it took time to get approval and so far there has been no significant change in price. The analyst pointed out that the long-term effect could be quite significant, comparing it to the situation of the Bitcoin ETF where the initial decline was followed by large inflows.

According to Van de Poppe, the Ethereum ETF’s trading volume on the first day of trading was about 25% of the volume Bitcoin ETF He noted that the first day of trading was marked by low inflation, and said there was a net inflow of $150 million to $160 million, which reduced the available supply.

Altcoins are poised for growth

The analyst said that as Ethereum adoption increases in the future, the supply of Ethereum will decrease, which is a deflationary model. Ethereum is up about 15% since the ETF approval, the broader market reaction has yet to happen as several sell-offs have taken place, including the Grayscale Trust.

Van de Poppe also mentioned other important market events, including the end of Mount Gox The process of repaying creditors initially caused tensions in the markets, but had little effect subsequently. It also highlighted the role of macroeconomic factors, which can lead to Fed rate cuts, which can affect markets.

In this regard, looking at van de Poppe’s strategy, he is still keen to trade within the altcoins of the Ethereum ecosystem. He stated that there is a possibility of short-term price fluctuations that may discourage many people, but the long-term still looks good due to the improvement and adaptation that has been made to Ethereum and its environment.

According to the analyst, substantial inflows could propel Ethereum towards new historic highs with estimates ranging from $5,000 to $7,000. Despite the current market fluctuations, he is confident that macroeconomic changes and greater liquidity will be favorable for altcoins.

He explained that his broad approach to altcoins, especially those associated with Ethereum, will be beneficial because the market will react differently to these events. The basis for his optimism comes from the fact that he believes that Ethereum and all associated projects are still extremely undervalued and have the potential to skyrocket as sentiment changes.

Looking ahead and market adjustments regarding the Ethereum ETF and other macroeconomic factors, the analyst remains bullish on altcoins. He suggested investors stay informed and believe that in the ever-changing world of crypto, they will eventually be rewarded.

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Altcoins

Altcoins Are Severely Undervalued, Awaiting Ethereum Move | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

IntoTheBlock Releases Report on Institutional DeFi Trilemma

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Altcoins

Altcoins Correct Amid ETH Decline, Grayscale Outflows | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

Disclaimer

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Altcoins

Epic Altcoin Rally Expected for August and September

Published

6 months ago

28 July, 2024

CoinFlix Staff

Crypto analyst predicts massive altcoin rally similar to Q1 2024, urging patience and accumulation.
Bitcoin’s potential as a reserve asset and its technical patterns suggest that it will drive the rise of the cryptocurrency market.

Captain Faibik, a renowned crypto analyst, has created excitement in the cryptocurrency sector with his latest prediction. He indicated that we are on the cusp of a massive altcoin rally, similar to the one we saw in Q1 2024.

We are on the verge of a massive Altcoin rally, similar to Q1 2024📈

Keep accumulating and hold with patience. (Patience will be rewarded)

The majority of #Altcoins have already hit rock bottom and are about to escape.

In my opinion, August-September is going to be epic for Altcoins.🚀🚀#Crypto pic.twitter.com/cMdHagiaYc

— Captain Faibik (@CryptoFaibik) July 24, 2024

Accumulating and Holding Altcoins: The Path to Potential Profits

He stressed the need to accumulate altcoins and hold them patiently, as it will eventually pay off. According to him, the majority of altcoins have already bottomed out and are about to break it. He believes August and September will be epic months for altcoins.

In a chart posted by Captain Faibik, the overall crypto market cap, excluding Bitcoin and Ether, known as TOTAL3, is approaching the upper boundary of a descending channel pattern.

This context suggests a potential breakout and a significant rally towards the $1 trillion mark. Technically, the decline since mid-March is interpreted as a corrective trend for the value of TOTAL3, signaling a preparation to enter a rally structure.

Bitcoin’s influence and legislative developments suggest good prospects for the future

Furthermore, based on sentiment and technical patterns, Bitcoin, the world’s leading cryptocurrency, appears poised to lead the charge in the cryptocurrency market. Bitcoin’s performance often sets the tone for the market as a whole, and a strong move in BTC could trigger a significant rally in altcoins.

Previously, as we have already said reportedSenator Cynthia Lummis said she plans to introduce a bill at the upcoming Bitcoin conference that would require the Federal Reserve to hold Bitcoin as a reserve asset.

If this law passes, the US will treat BTC as a long-term investment rather than selling huge amounts infrequently, which could disrupt the market.

In addition, asset management firm VanEck has proposed a bold scenario in which Bitcoin Price Could Reach $2.9 Million Per BTC By 2050based on its fundamental outlook. Matthew Sigel, head of digital assets at VanEck, and senior investment analyst Patrick Bush noted that their estimate is based on Bitcoin’s adoption as a global medium of exchange and reserve asset.

As Bitcoin price increases, altcoins are expected to gain popularity, indicating the start of a bullish rally shortly after the BTC halving event.

Meanwhile, at the time of writing, the price of BTC was hovering around $67,007.99up 4.67% over the past 24 hours following a short-term correction.