The trajectory of the cryptocurrency market in 2024 was quite unpredictable. A long-awaited ‘Uptober’ failed to materialize — only for Donald Trump’s victory in the presidential elections to ignite a full-on bull run in November.
On November 4, Bitcoin (BTC) was changing hands at approximately $68,800 — after the rally, it reached a new all-time high (ATH) price of $108,135. Altcoins followed suit — with many well-established coins and tokens seeing stellar returns.
However, in mid-December, BTC hit a roadblock. Prices fell to as low as $92,000, a crucial support level, and have since struggled to decidedly break past $100,000 again.
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At press time, Bitcoin was changing hands at $94,970. Many theorized that the first Bitcoin correction would lead to altcoin season — a period where smaller cryptocurrencies outperform the leading digital asset.
It turns out that this sluggishness isn’t relegated solely to BTC — altcoins have also seen a decrease in bullish momentum. Some of this can be attributed to plain old profit-taking — however, the Federal Reserve’s (FED) decision to have fewer rate cuts in 2025 is also a factor, as it hampered the risk/reward profile of speculative assets such as cryptocurrencies.
The slump has already lasted longer than most have expected — and while more pessimistic commentators are already calling the altcoin bull run over, one noted analyst has shared a much more optimistic sentiment.
Michaël van de Poppe points to macro factors in bullish altcoin thesis
In stark contrast with the prevailing sentiment of bearishness, Michaël van de Poppe, a renowned cryptocurrency researcher, outlined a much more bullish case for the currently anemic altcoin market in a January 9 post on social media platform X.
At present, a strong dollar, FUD surrounding Tether (USDT), and high bond yields are hampering bullish momentum.
While he did admit that the present state of affairs has been an ‘awful ride’ and noted that his own returns have also suffered, van de Poppe pointed out that altcoins are trading at a cycle low in comparison to Bitcoin, and highlighted several macroeconomic catalysts that could renew bullish sentiment.
In particular, the analyst put a spotlight on inflation, GDP growth, and labor markets — per van de Poppe, underperformance or weakness in any of these categories could lead to quantitative easing (QE), increased liquidity, and ultimately a much more favorable environment for speculative assets.
Lastly, although the President-elect’s promises don’t always come to fruition, the analyst is confident that Trump’s intent to lower interest rates (although the President cannot do so directly), will bear fruit — in yet another move that would benefit risk assets such as altcoins.
Featured image via Shutterstock
