In a recent video, popular crypto analyst Michaël Van de Poppe discussed the causes of the latest market crash. He pointed to two main factors: the Japanese Yen Carry Trade and a large sell-off by Jump Trading, which involved liquidating a $500 million Ethereum (ETH) position. This sell-off triggered a crash in the Nikkei and led to a 30% drop in Bitcoin.
Van de Poppe explained that Ethereum’s sharp correction was due to its lower supply and higher staking rate compared to Bitcoin, making it more volatile.
Signs of Optimism
Despite the massive sell-off, there are positive signs. The Ethereum ETF saw over $100 million in inflows last week, indicating that investors remain bullish on Ethereum. Van de Poppe views this correction as a normal part of the market cycle and suggests that we might be nearing the bottom, with possible signs of an upcoming bull phase.
Altcoins to Watch: Preparing for the Next Market Rally
Van de Poppe offers a strategy for altcoins, focusing on sectors that are likely to rebound strongly, such as AI, DeFi, and meme coins. Here are his top picks:
Fetch.ai (FET)
Fetch.ai has shown a strong recovery in the AI sector, with a 70% bounce from recent lows. Van de Poppe sees this as a prime candidate for further growth, potentially offering 5-10x returns from its current levels.
Aave (AAVE)
Aave, a major player in the DeFi space, is next on his list. Van de Poppe notes that Aave’s total value locked (TVL) compared to its market cap suggests it’s undervalued, with significant room for growth.
REN (Ren)
REN, another DeFi token, is also on Van de Poppe’s radar. Although more risky, he believes REN is undervalued relative to its TVL. While he advises caution, he sees potential for growth as the market rebounds.
GMX
GMX, known for its decentralized exchange platform, is another altcoin to watch, especially as activity in decentralized finance (DeFi) continues to increase.
SingularityNET (AGIX)
SingularityNET, another AI-focused project, has shown strong performance and promise. Van de Poppe believes AGIX will benefit from AI’s growing role in crypto, making now a good time to buy before the market recovers.
Solana (SOL)
Solana’s strong performance in the DeFi space is a key reason for his bullish outlook on SOL. He points out that Solana has bounced back strongly from the recent correction and demonstrated its resilience in a challenging market environment. He sees Solana as a major contender for future growth, particularly as the market recovers.
Watch Out for the Bulls!
Van de Poppe also highlights several key indicators to watch for clues on the market’s next move. Bitcoin dominance is currently at 54%, nearing its historical peak, which often signals the end of bear markets for altcoins and the beginning of bullish trends. He also suggests monitoring ETH’s performance against Bitcoin and USD Tether (USDT) for further insights into the market’s direction.
By focusing on these altcoins, particularly those in the AI and DeFi sectors, Van de Poppe believes they could lead the way in the next bull run.
Also Check Out: Crypto Market News Today: Bitcoin Crashes Below $59,000—Ethereum Heads to $2500, Altcoins Consolidate
The crypto market is a high-stakes game. Are you ready to bet on these potential winners?
This news is republished from another source. You can check the original article here
