Are We in Crypto Bear Market, or Is Recovery on Horizon? Michaël Van De Poppe Weighs In

The post Are We in Crypto Bear Market, or Is Recovery on Horizon? Michaël Van De Poppe Weighs In appeared first on Coinpedia Fintech News

The cryptocurrency market cap fell by 3% to $2.4 trillion in early trading, largely due to Bitcoin’s downward trend. BTC closed near $63,000 last week, a critical support level, causing concerns about further declines. Bitcoin’s price has dropped by 2.3% in the last 24 hours, currently trading around $62,800. If BTC consistently closes below $63,000, it could retest the next support level above $60,000.

What’s holding the coin back? What hurdles lie ahead? We’ve got some answers for you!

Understanding the Current Bear Market and Altcoin Industry

In a recent analysis, Michaël Van De Poppe examined the current state of the crypto market, highlighting significant shifts in investor behavior amidst a prolonged downtrend. 

He noted a sharp decline in retail interest, with YouTube metrics showing only 25-30% engagement compared to 2021 levels. This retreat of retail investors has coincided with a bearish phase, where altcoins like Chainlink have plummeted up to 60% against Bitcoin over the last five months.

Moreover, Bitcoin’s dominance remains a crucial factor shaping market sentiment. Since the approval of Bitcoin ETFs, Bitcoin has maintained stability around its all-time highs, consolidating its position while altcoins struggle to recover.

His Take on Meme

Michaël Van De Poppe doesn’t trust meme coins. He likes to invest in blockchain projects that build the future of finance. He thinks celebrity coins like TrumpCoin, Daddy Tate, and Iggy Azalea’s Mother Iggy are more about fame than real value. 

However, he also highlighted some meme-coins with potential for long-term gains, notably Dogecoin (DOGE) and Pepe (PEPE). He emphasized the risks associated with meme coin investments, cautioning about the volatility and speculative nature prevalent in this sector.

Current Price Action

Meanwhile, the majority of meme coins saw a bloodbath in the last 24 hours. DOGE traded at $0.1208, down nearly 3%, while PEPE and RUNES declined by 8% and 9.84%, respectively. His insights are important as there is a buzz of upcoming altcoin market rebound, expecting a rotation starting in the next few weeks.

Market Picture

Despite the current bearish market conditions, analysts suggest that this phase may be short-lived, with a bullish reversal expected soon. Attention has recently turned from US-based spot Bitcoin ETFs to the Ethereum network. According to Santiment’s on-chain data analysis, Ethereum saw a notable increase in active addresses last week, surpassing 617,000 addresses, marking the highest in three months.

The market is keeping a close eye on the upcoming listing of newly approved spot Ether ETFs in the US which may bring a sign of relief. This mirrors the bullish trend seen earlier this year with spot BTC ETFs, which led to a surge towards an all-time high (ATH). Notably, BlackRock and Fidelity have already seeded their spot in Ether ETFs, anticipating their listing next month, further fueling market optimism.