Bitcoin Drops 5% as Inflation Fears Spark Correction

Analyst and trader Michaël van de Poppe has issued a warning that the top two crypto assets by market cap, Bitcoin and Ethereum, may face further corrections as markets react to new US data showing a rise in inflation. According to van de Poppe, after Bitcoin reached new all-time highs and Ethereum surged into the $3,000 range, the digital assets are likely to trend lower based on historical precedent. He noted that volatility tends to increase as prices rise, indicating that harsh corrections are imminent.

Van de Poppe suggests that Ethereum may decline to the $2,750 level before a trend reversal. At the time of writing, Bitcoin is trading at $116,947, down 5% from its all-time high of $122,838 on Monday. Ethereum is trading at $3,048, up 19% in the last week. The analyst also highlighted the strong market fundamentals of the layer-1 blockchain SUI Network, which has regained the $3 level. Van de Poppe believes that SUI has more upside potential, as it held strong support at $2.35 and started to rally substantially after breaking the downtrend. He considers the crucial breakout above $3 as a signal for 'buy the dip' territory, indicating that SUI will be trading upwards.

At the time of writing, SUI is trading at $4.01, up 2.4% in the last 24 hours. Van de Poppe's analysis suggests that while Bitcoin and Ethereum may face further downside, altcoins like SUI Network could outperform the competition due to their strong market fundamentals and recent price movements. The analyst's warnings and predictions are based on historical market trends and technical analysis, providing insights into the potential future performance of these digital assets.