Bitcoin price formed its second consecutive daily decline candle on May 1, dropping to $56,552. Over the past four days, green candles have been improving investor sentiment. Things are not fully on track yet, but BTC moving away from the $60,000 support reduces the risk of larger losses. What do popular market experts say?
Have Cryptocurrencies Hit the Bottom?
BTC was finding buyers at $64,343 at the time this article was prepared, and altcoins were making modest gains. Van de Poppe, a widely followed analyst, made significant comments about the market bottom in his latest assessment. He believes the bottom has been reached in crypto following worse-than-expected U.S. labor market data for April.
Unemployment rising to 3.9% and average hourly earnings increasing less than expected were the best things we could see on the macroeconomic front besides a decrease in inflation. Although the decrease in inflation has weakened, rising unemployment and weakening hourly wages are highly motivating for risk markets.
Poppe now believes the Fed will have to start the money printing machines to support the employment market.
“Terrible economic data -> DXY (U.S. dollar index) fell, also the case for QE (quantitative easing) and interest rate cuts will increase, and therefore risky assets will rally.
Bitcoin returned above $61,600.
FOMC was a major trigger for the bottom, and markets have seen the lowest level. Altcoin bull run has started.”
Altcoin Commentary
Believing that the bottom has been found, Michael says the door has opened for bigger rallies for altcoins. Looking at the market values of all altcoins, the analyst expects a big move after the consolidation process is completed.
“The total market value of altcoins generally saw the bottom of this correction. I think after lingering in the $880-920 billion range for a while, the journey to ATH will begin.”
The analyst also said that the return of individual investors is about to increase. When altcoins make big gains, a rush of both old and new investors begins in the crypto markets.
“When Bitcoin was at all-time highs, individual investors were not even in the markets.
When will they return?
Probably after this summer, when altcoins start to rise.
They hold altcoins, so they bounce back when they start returning. We are still in the early stages.”
