Experienced Analyst Says, "Bullish Turn in Altcoin Has Started!" Here’s the Reason

Famous crypto analyst Michaël van de Poppe made significant observations in his latest assessments regarding the altcoin market. Van de Poppe stated that altcoins are showing signs of recovery after a four-year historical bear market.

According to the analyst, investor expectations have been severely shaken over the past 3 months. However, current indicators show that green lights are on in the market. Van de Poppe stated that many factors driving the markets come from outside the cryptocurrency sector.

Van de Poppe stated that the increase in liquidity has a direct upward impact on Bitcoin. He mentioned that as the money supply (M2) expands, prices of rare assets like Bitcoin are expected to rise. The analyst pointed out that China has started monetary expansion (QE), Europe has cut interest rates, and the US is also preparing to increase the money supply through interest rate cuts, noting that these steps create a strong driving force for risky assets.

According to van de Poppe, the short-term peak of gold and the increase in risk appetite create a favorable environment for Bitcoin and altcoins. The analyst stated that Bitcoin is supported by developments such as ETF approval and Donald Trump becoming President of the USA, and that these factors have created a new wave of liquidity. Van de Poppe, who noted that gold has outperformed the S&P 500 by 20% since 2022, argued that the markets are starting to lose the upward momentum in gold. He predicted that the next 12-18 months could offer strong performance for risky assets.

Van de Poppe noted that the CNH/USD (Çin Yuan/U.S. Doları) pair has a decisive impact on the altcoin market. Historical data shows that major rallies have started in altcoin markets during periods when the CNH/USD pair bottomed out. Recalling the examples of 2016 and 2019, the analyst pointed out that the yuan bottomed out after the recent sharp declines. He claimed that this development could open the door to a new bullish period in the altcoin market.

Van de Poppe stated that the traditional understanding of the four-year market cycle has been replaced by macroeconomic factors, and that liquidity and global economic conditions will now take precedence. He noted that there could be a significant revival in altcoins with the strengthening of the Chinese Yuan and the correction in gold prices.