Altcoins are facing challenges in the market as Bitcoin maintains its dominance and the listing of Ethereum ETF is delayed. The market remains uncertain, with the timing of altcoin recovery unknown. Altcoins have experienced losses despite Bitcoin trading below $66K, wiping out gains from the March rally. Market sentiment is bearish, with hopes for an altcoin season fading.
Market analyst and MN Trading founder Michaël van de Poppe points to various factors contributing to the bearish trend for altcoins. Ethereum, the top altcoin by market cap, has dropped by 5% in the past week and had a volatile month. The delay in listing Ethereum ETFs, despite approval, has created uncertainty and added to market instability.
Bloomberg analysts anticipate a potential boost if the ETFs launch on July 2, potentially changing Ethereum’s classification to a commodity from a security. Van de Poppe also mentions macroeconomic factors like high inflation and U.S. economic data hindering the Federal Reserve from reducing interest rates, which traditionally benefit altcoins.
Bitcoin’s dominance in the market, currently at 55.4%, is putting pressure on altcoins, with a preference for Bitcoin over other cryptocurrencies. Some analysts believe this trend could shift with the potential listing of the Ethereum ETF, sparking investor interest in altcoins.
The question remains whether the current altcoin downturn is temporary or here to stay. Crypto trader ‘cyclop’ suggests a potential buying opportunity before a possible rise, but the overall altcoin season index has dropped, indicating a bearish sentiment. Some experts anticipate a market reversal driven by the Ethereum ETF listing, as Bitcoin remains range-bound and altcoins continue to decline.
The focus is on upcoming developments, particularly the Ethereum ETF, which could bring renewed optimism and a potential recovery in the altcoin sector.
