In a recent video, popular crypto analyst Michaël Van de Poppe shared insights into the recent market crash, attributing it largely to the Japanese Yen Carry Trade and a significant sell-off by Jump Trading, which liquidated a $500 million Ethereum (ETH) position, which led to a Nikkei crash and a 30% drop in Bitcoin. He explained that Ethereum’s heavy correction was due to its lower supply and higher staking rate than Bitcoin, making it more volatile.
Despite the sell-off, there’s optimism as the Ethereum ETF saw over $100 million in inflows last week, indicating a bullish outlook. Despite Ethereum’s issues, the Van de Poppe believes this correction is a normal part of the cycle and suggests the market might be nearing a bottom, with potential signs of an upcoming bull phase.
Altcoins to Watch: Preparing for the Rebound
In terms of altcoins, Van de Poppe offers a focused strategy for positioning in the coming weeks. He suggests monitoring sectors likely to bounce back the strongest, particularly AI, DeFi, and meme coins. Within these sectors, he identifies several key picks:
Fetch.ai (FET)
Fetch.ai has shown a strong recovery in the AI sector, with a 70% bounce from recent lows. Van de Poppe sees this as a prime candidate for further growth, potentially offering 5-10x returns from its current levels.
Aave (AAVE)
Next on his list is Aave, particularly within the DeFi ecosystem. He notes that Aave’s total value locked (TVL) versus its market cap indicates it is heavily undervalued, suggesting significant upside potential.
REN (Ren)
Although more risky, REN is another DeFi token Van de Poppe believes is undervalued relative to its TVL. He advises cautious investment but sees potential for growth as the market recovers.
GMX
GMX, with its decentralized exchange platform, is another altcoin to watch, especially as activity in decentralized finance (DeFi) increases.
SingularityNET (AGIX)
As another AI-focused project, SingularityNET has strong performance and promise. Like FET, Van de Poppe thinks AGIX will profit from crypto’s AI integration. He thinks the recent downturn is a good time to buy AGIX before the market recovers.
Solana (SOL)
Solana’s strong performance in the DeFi space is a key reason for his bullish outlook on SOL. He points out that Solana has bounced back strongly from the recent correction and demonstrated its resilience in a challenging market environment. He sees Solana as a major contender for future growth, particularly as the market recovers.
Is it the end of the Bear Market?
Van de Poppe highlights several key indicators for those looking to understand the market’s next move. Bitcoin dominance is at 54%, which is nearing its peak, and has historically signaled the end of bear markets for altcoins and the start of bullish trends. He also advises monitoring ETH’s performance against Bitcoin and USD Tether (USDT) for further insights into the market’s direction.
By positioning himself in these altcoins, particularly those in the AI and DeFi sectors, Van de Poppe is confident they might lead the charge in the next bull run.
Also Check Out: Crypto Market News Today: Bitcoin Crashes Below $59,000—Ethereum Heads to $2500, Altcoins Consolidate
