In the wake of dismal U.S. economic data, crypto analyst Michaël van de Poppe forecasted a substantial rally in the altcoin markets.
What Happened: On Friday, van de Poppe communicated his optimistic stance on cryptocurrencies to his followers on the social media platform X.
Terrible economic data -> $DXY down, additionally the case for QE and rate cuts will increase and therefore risk-on assets rally.#Bitcoin back to $61.6K.
— Michaël van de Poppe (@CryptoMichNL) May 3, 2024
FOMC was the low for the markets and altcoin bull market has started. pic.twitter.com/uVZxaYUwlM
This comes in the wake of the U.S. labor market falling short of estimates in April, with unemployment climbing to 3.9% and average hourly earnings growing less than anticipated. Van de Poppe believes that these economic indicators will compel the Federal Reserve to activate the money printers to bolster the job market, leading to a rally in risk-on assets.
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"Terrible economic data -> DXY (US dollar index) down. Additionally, the case for QE (quantitative easing) and rate cuts will increase, and therefore risk-on assets rally," he said.
The analyst also foresees a consolidation period for the altcoin market before it rallies to record new all-time highs.
He predicted the total altcoin market capitalization to stabilize in the $880-$920 billion range before a run toward an all-time high.
Van de Poppe also expects the resurgence of retail traders in the crypto markets once altcoins register significant gains.
"Retail isn’t even in the markets, while Bitcoin is around the all-time highs. When will they come back? It will probably be after this summer when altcoins start to lift off," he said.
Why It Matters: The recent downturn in the altcoin market has been attributed to supply and demand dynamics and a loss of momentum, as reported by pseudonymous crypto strategist Pentoshi.
The frequent launch of new altcoins diluted demand, necessitating around $200 million a day in new money inflows to maintain current prices.
Furthermore, cryptocurrency strategist Altcoin Sherpa recently predicted a 267% surge in the value of Solana (CRYPTO: SOL) by the end of the year. He suggested that buying shares of Solana at current levels could yield substantial future gains. These forecasts align with van de Poppe's predictions, indicating a potential boom in the altcoin market.
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo: Shutterstock
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