In a recent post on X, crypto analyst Michaël van de Poppe shared his insights on the current state of the altcoin market. According to van de Poppe, altcoin market caps are lagging while Bitcoin (BTC) is currently in the spotlight. This phenomenon is more common when the strength of the crypto market is primarily driven by Bitcoin.
Current state of the altcoin market
Van de Poppe points out that the situation in which altcoins are left behind is not uncommon. “The market cap of altcoins is lagging,” he says. Bitcoin has risen sharply in recent days and is now only a few percent below its record price. Bitcoin often tends to dictate market trends, and other cryptocurrencies follow suit.
The #Altcoin Market capitalization is still lagging behind.
This usually happens when the strength is only surrounded by Bitcoin.
However, once Bitcoin stabilizes, it is likely that altcoins will double in the future. pic.twitter.com/TQuA8sR9DO
— Michaël van de Poppe (@CryptoMichNL) February 28, 2024
Despite the altcoins’ current slowdown, Van de Poppe is optimistic about their future. He points out that there is significant growth potential once Bitcoin stabilizes. “Once Bitcoin stabilizes, the altcoin market cap likely has the potential to double,” Van de Poppe said. This prediction suggests a possible doubling of the total value of altcoins in the near future.
It is assumed that profits from Bitcoin flow into altcoins such as Ethereum (ETH), Ripple (XRP) and Cardano (ADA). The prices of these coins can benefit from this.
The Dutch analyst was also in the news today. In the current price range, he is considering (partially) pocketing his profits. That’s not crazy. Resistance for the price is expected to increase as we get closer to the $69,000 level. Funding rates also increased significantly, which can also be an indicator of more volatility.
Bitcoin price extremely volatile
At the time of writing, Bitcoin is trading at $60,000, having previously reached $64,000. A quick correction took BTC back to $60,000, showing how strong the resistance is in this zone.