Popular analyst Michaël van de Poppe believes crypto is gearing up for a market-wide rally amid signs of slowing economic activity.
Van de Poppe tells his 716,300 followers on social media platform X that he is optimistic about crypto after the US labor market missed estimates in April.
Now that unemployment has risen to 3.9% and the average hourly wage is growing less than expected, the analyst said believes that the Fed will be forced to turn on the money printers to support the labor market.
“Terrible economic data -> DXY (US dollar index) down, furthermore the arguments for QE (quantitative easing) and interest rate cuts will increase and therefore risk assets will rise.
Bitcoin back [above] $61,600.
FOMC (Federal Open Market Committee) was the bottom for the markets and the altcoin bull market has begun.”
Looking at the market cap of all altcoins, the trader predicts that the alt market will experience a period of consolidation before recovering to new all-time highs.
“Total altcoin market cap has generally bottomed out in this correction. I think $880-$920 billion is where it will stabilize before a run to all-time highs is on the horizon.”
The analyst too say that the return of retailers is now in sight. He believes they will enter the crypto markets once altcoins make significant gains.
“Retail isn’t even in the market, while Bitcoin is around all-time highs.
When will they come back?
It will probably be after this summer when altcoins start to take off.
They contain altcoins, so when they start spinning, they jump back in.
This means you are still early.”
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Featured image: Shutterstock/YanaBu