Factors such as the overall performance of the crypto markets, the development of cryptocurrency projects, and the demand from investors can affect the performance of altcoins. After all, the performance of altcoins is heavily dependent on the performance of Bitcoin. Famous crypto analyst Michaël van de Poppe responded to the question of “when is the rise”, which altcoin investors are curious about, and offered 2 conditions.
Michaël van de Poppe answered the altcoin investors’ question “when is the rise”.
Altcoins continue to show weakness overall. They will start to recover if Bitcoin crosses $30,000, confidence returns to the market and Ethereum bounces against BTC. After these two happen together, altcoins will continue to rise.
As the analyst points out, the rise of the ETH/BTC trading pair usually causes altcoins to rise. Because the vast majority of altcoins are traded in the ETH/BTC pair, changes in the price of this pair affect the value of altcoins in US dollars. The rise of ETH/BTC could increase the purchasing power of altcoins and hence raise the prices of altcoins. However, the rise of the ETH/BTC trading pair does not always result in the rise of altcoins. Alongside the trading pair, Bitcoin may need to rise.
Altcoins’ bullish cycle usually happens during Bitcoin’s bullish cycle. The rise of Bitcoin causes the crypto money market to rise in general, and altcoins are also positively affected by this rise. In this case, investors put more demand for altcoins and altcoin prices rise. However, altcoins’ bullish cycle is generally shorter and more volatile than Bitcoin’s bullish cycle. Therefore, altcoin investors have to follow a high-risk investment strategy. It is also more difficult to predict price movements, given that the volatility in price movements of altcoins is usually greater. As a result, altcoins’ bullish cycle is often tied to Bitcoin’s bullish cycle, and altcoin investors have to follow a high-risk investment strategy.