Crypto trader Michaël van de Poppe believes that altcoins are primed for a bull run following an extended bear winter.
Van de Poppe tells his 784,800 followers on the social media platform X that three tailwinds are pushing crypto prices higher.
At the top of his list is that financial conditions are starting to ease across the world, which he says is highly favorable for risk-on assets such as altcoins and Bitcoin (BTC).
“Liquidity is increasing, and therefore, Bitcoin is expected to go up…
China has started firing up QE (quantitative easing), Europe has lowered the interest rates and we’re at the forefront of the US lowering interest rates and expanding the money supply (or easily said: starting doing printer brr again).
That is a heavy trigger for risk-on assets and will likely start pushing Bitcoin towards a new all-time high.”
Next up, Van de Poppe thinks that investors who benefited from gold’s strong rally over the past few months will start to move their capital into crypto after the precious metal printed a local top at $3,500 per ounce.
“The markets have started to peak for gold in the short term. I truly approve that we’re in a bull market for risk-off assets and that there are certain windows in between that provide windows for risk-on momentum.
We’re on the edge of one. That means a 12-18 month window of risk-on assets to do well as the correlation between a strong gold price and falling altcoins has provided strong data.
Gold has extended massively upwards as the RSI (relative strength index) data has gone into levels not seen since 1980, while ETH has gone so deep that it’s on the lowest point ever against Bitcoin on the weekly and monthly data.”
Lastly, Van de Poppe says that historical data suggest that the offshore Chinese Yuan and US dollar ratio (CNH/USD) is tightly correlated to the value of the Ethereum versus Bitcoin (ETH/BTC) pair.
According to the trader, CNH/USD printed major bottoms in 2016 and 2019, and during those periods, ETH/BTC and the rest of the altcoin markets carved cycle bottoms before sparking huge upside bursts.
Now, Van de Poppe believes that CNH/USD has bottomed out following the “tariff madness,” putting Ethereum and altcoins in a position to finally witness a true bull run.
“Just like liquidity is the key trigger for Bitcoin, that’s the risk-on and risk-off appetite for altcoins, which can be provided through charts like the CNH/USD and gold.
The altcoin markets have just witnessed the longest bear market ever, which was four years. The previous longest bear market was in 2016, although that was just 2.5 years…
Macroeconomic tables are turning, and I assume we’ll see gold correct, Chinese Renminbi to turn upwards and altcoins to fire off.”
At time of writing, the ETH/BTC pair is trading for 0.01894 BTC worth $1,798.
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