Despite the recent downturn in the market, cryptocurrency analyst Michaël van de Poppe believed that a major Bitcoin BTC/USD crash is not on the horizon.
What Happened: In an X post on Sunday, Van de Poppe noted that while Bitcoin’s price has corrected by 26% from its all-time highs in March, he does not see this as a sign of an impending crash. Instead, he views it as a regular correction that is normal for the current market state.
The widely-followed analyst stated that he was not in favor of valuing assets against the U.S. dollar owing to the high inflation in recent years.
“If you're looking at different dynamics rather than solely the U.S. dollar, then you conclude that there's a case of copying/pasting previous cycles as inflation-adjusted, Bitcoin hasn't made any new all-time high as of yet,” he added.
Van De Poppe underlined that Bitcoin was down 35% from the peak when compared with the S&P 500, and no ATH has been recorded in the ongoing cycle. In essence, he concluded that King Crypto was actually at the end of a down-trending market and was poised to have a bull run that would likely go until 2026.
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Why It Matters: Known for sharing valuable inputs regarding cryptocurrency portfolios and picking the assets to invest, Van De Poppe’s forecast came amid when the cryptocurrency market was experiencing a downturn.
Bitcoin sank below $53,000 on Friday after weaker-than-expected jobs data spurred fears of an economic slowdown. However, the leading cryptocurrency recouped some of its losses Sunday overnight.
Market observers and participants have pinned their hopes on the widely expected interest rate cuts by the Federal Reserve in the upcoming FOMC meeting to impart bullish momentum to the cryptocurrency market. Typically, risky assets tend to respond positively to monetary policy easing.
That said, some analysts have taken a contrarian position, projecting a 15-20% decline in Bitcoin’s price after the probable rate cut.
Price Action: At the time of writing, Bitcoin is exchanging hands at 55,074.64, up 1.35% in the last 24 hours, according to data from Benzinga Pro.
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