Altcoins Poised for Bull Run as Global Liquidity Increases, Gold Momentum Wanes

Generated by AI AgentCoin World
Tuesday, Apr 29, 2025 10:38 am ET1min read
BTC
--

Crypto trader Michaël van

de
Poppe has expressed his belief that altcoins are poised for a significant bull run following an extended period of bearish conditions. Van de Poppe, who has a substantial following on the social media platform X, has identified three key factors that are driving the recent rally in cryptocurrency prices.

The first factor, according to Van de Poppe, is the easing of financial conditions globally, which is highly favorable for risk-on assets such as altcoins and Bitcoin. He notes that liquidity is increasing, with central banks in various regions, including China and Europe, implementing quantitative easing and lowering interest rates. This trend is expected to push Bitcoin towards a new all-time high and create a favorable environment for altcoins.

The second factor Van de Poppe highlights is the potential shift of capital from gold to cryptocurrencies. He observes that gold has experienced a strong rally, reaching a local top at $3,500 per ounce. As the precious metal's momentum begins to wane, investors who benefited from gold's gains may start moving their capital into crypto, particularly altcoins. This shift is supported by historical data showing a correlation between a strong gold price and falling altcoin prices, suggesting a window of opportunity for risk-on assets.

The third factor driving the crypto rally, according to Van de Poppe, is the historical correlation between the offshore Chinese Yuan and US dollar ratio (CNH/USD) and the value of the Ethereum versus Bitcoin (ETH/BTC) pair. He points out that major bottoms in the CNH/USD ratio in 2016 and 2019 coincided with cycle bottoms in the altcoin markets, followed by significant upside movements. With the CNH/USD ratio having bottomed out following recent economic events, Van de Poppe believes that Ethereum and altcoins are positioned for a true bull run.

Van de Poppe emphasizes that the altcoin markets have just experienced the longest bear market ever, lasting four years. He suggests that macroeconomic conditions are turning favorable, with gold expected to correct, the Chinese Renminbi to turn upwards, and altcoins to rally. This optimistic outlook is based on the increasing liquidity, the potential capital shift from gold, and the historical correlation with the CNH/USD ratio.