Famous cryptocurrency analyst Michaël van de Poppe made important observations in his latest assessments of the altcoin market. Van de Poppe stated that altcoins are showing signs of recovery after a four-year historical bear market.

According to the analyst, investor expectations have been seriously shaken over the past 3 months. However, current indicators show that the market is green. Van de Poppe said that many factors that move the markets come from outside the cryptocurrency sector.

Van de Poppe stated that the increase in liquidity has a direct upward effect on Bitcoin. He said that as the money supply (M2) expands, the prices of rare assets like Bitcoin are expected to rise. The analyst stated that China has started quantitative easing (QE), Europe has lowered interest rates and the US is preparing to increase the money supply with interest rate cuts, and that these steps create a strong driving force for risky assets.

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According to Van de Poppe, the peak in gold in the short term and the increase in risk appetite create a positive environment for Bitcoin and altcoins. The analyst stated that Bitcoin is supported by developments such as ETF approval and Donald Trump becoming the US President, and that these factors create a new wave of liquidity. Van de Poppe, who said that gold has outperformed the S&P 500 by 20% since 2022, argued that despite this, the markets are now starting to lose their upward momentum in gold. He predicted that the next 12-18 months could offer a strong performance for risky assets.

Van de Poppe stated that the CNH/USD (Chinese Yuan/US Dollar) parity has a decisive effect on the altcoin market. Past data shows that major rallies begin in altcoin markets when the CNH/USD parity bottoms. Recalling the examples of 2016 and 2019, the analyst pointed out that the yuan has bottomed after the sharp declines experienced recently. He claimed that this development could open the door to a new period of rise in the altcoin market.

Van de Poppe stated that macroeconomic factors have replaced the traditional four-year market cycle approach, and that liquidity and global economic conditions will now be more at the forefront. He stated that a serious revival could occur in altcoins as the Chinese Yuan strengthens and gold prices correct.

*This is not investment advice.

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