Ahead of the Federal Reserve’s upcoming rate announcement, prominent crypto trader Michaël van de Poppe has forecasted a significant bull run in the cryptocurrency market.
What Happened: Van de Poppe stated on X, “Tomorrow is the big FED day and I think that we’re facing the biggest bull run ever.”
Van de Poppe also shared a YouTube video discussing whether altcoins have bottomed out. He noted that while Bitcoin BTC/USD remains below $60,000, altcoins have shown strong performance against Bitcoin. This raises questions about whether the altcoin market has truly bottomed.
In his video, Van de Poppe highlighted that market sentiment is improving despite recent fears. He mentioned that the crypto fear and greed index hit a low of 22 last week but has since recovered to between 30 and 40.
Van de Poppe also pointed out that recent economic data, including labor market updates and CPI figures, suggest a potential rate cut by the Fed. This could further boost Bitcoin’s price.
He emphasized the importance of upcoming events like Token 2049 and the Fed’s rate announcement on Wednesday. Van de Poppe believes these events could significantly impact the crypto market’s direction.
Van de Poppe concluded by analyzing various altcoin/Bitcoin pairs, noting that some altcoins are showing signs of a bottom and potential for a rally. He recommended focusing on innovative and trending altcoins tied to the Ethereum ETH/USD ecosystem.
Why It Matters: The anticipation surrounding the Federal Reserve’s rate decision has already caused significant movements in the cryptocurrency market.
Jim Bianco of Bianco Research emphasized the importance of understanding the “neutral” funds rate in an interview with Natalie Brunell. He noted that if the Fed cuts rates too aggressively, it could stimulate another round of inflation in 2025. Polymarket data shows a 53% probability of a 50 basis points decrease and a 44% chance of a 25 basis points cut.
Additionally, former President Donald Trump has entered the crypto space with the launch of World Liberty Financial, a new decentralized finance platform.
Price Action: At the time of writing this article, Bitcoin is priced at $60,123.70, down 0.15% in the last 24 hours, but up 35.89% year-to-date. Meanwhile, Ether is trading at $2,357.76, down 0.84% in the previous 24 hours, but showing a modest year-to-date gain of 0.19%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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