The Cryptocurrency Market’s Roller Coaster Ride in 2024
The landscape of the cryptocurrency market in 2024 was marked by unexpected twists and turns. The highly anticipated ‘Uptober’ failed to come to fruition, but a significant shift occurred when Donald Trump secured victory in the presidential elections, sparking a robust bull run in November.
The Bitcoin Surge and Altcoin Rally
On November 4, Bitcoin (BTC) was trading at around $68,800. Following this rally, it reached an unprecedented all-time high of $108,135. This surge wasn’t limited to Bitcoin; numerous established altcoins also experienced remarkable gains.
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Challenges in Mid-December
However, by mid-December, Bitcoin encountered resistance. Its price dipped to approximately $92,000, a critical support level, and has since struggled to consistently surpass the $100,000 threshold.
As of the latest update, Bitcoin was valued at $94,970. Analysts speculated that this Bitcoin correction might trigger an altcoin season, a phase where smaller cryptocurrencies outshine the leading digital asset.
The Broader Cryptocurrency Market Slowdown
This sluggish trend hasn’t been exclusive to Bitcoin; altcoins have also witnessed a decline in bullish momentum. This stagnation can partly be attributed to profit-taking, but the Federal Reserve’s (FED) decision to limit rate cuts in 2025 has also played a role by affecting the risk/reward dynamics of speculative assets like cryptocurrencies.
The prolonged downturn has exceeded most expectations. While some pessimists are declaring the end of the altcoin bull run, a prominent analyst offers a more optimistic perspective.
Michaël van de Poppe’s Bullish Altcoin Outlook
In contrast to the prevailing bearish sentiment, Michaël van de Poppe, a distinguished cryptocurrency analyst, presented a more positive outlook for the currently subdued altcoin market in a January 9 post on social media platform X.
The
Altcoin bull market is over!
That’s the current thesis on the markets. Let me tell you, it’s not. This correction is the shake-out before it begins. There’s so much on the horizon that will reward you if you’re holding those altcoins. The party is about to get…
— Michaël van de Poppe (@CryptoMichNL)
Currently, factors such as a strong dollar, concerns surrounding Tether (USDT), and elevated bond yields are hindering positive momentum.
While acknowledging the difficulties of the current market conditions and recognizing that his own returns have been impacted, van de Poppe emphasized that altcoins are trading at a cycle low compared to Bitcoin. He highlighted several macroeconomic factors that could rejuvenate bullish sentiment.
Macroeconomic Catalysts for Altcoin Growth
The analyst pointed to inflation, GDP growth, and labor market conditions as potential catalysts for a resurgence. According to van de Poppe, underperformance or weakness in these areas could lead to quantitative easing (QE), increased liquidity, and ultimately create a more favorable environment for speculative assets.
Furthermore, although the promises of the President-elect don’t always materialize, van de Poppe is optimistic about Trump’s intention to lower interest rates, which would benefit risk assets such as altcoins.
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