Cryptocurrency analyst Michaël van de Poppe recently shared his views on the future of Bitcoin, Ethereum and the altcoin world.
Van de Poppe explained that Bitcoin's peak strength is not a sign of a bull market top. Instead, this strength suggests that Bitcoin's valuation is overpriced by market standards and needs to come true.
He explained that the markets have recently risen by 100% and this is not a typical trigger for a large group of investors to enter the markets. Instead, they will likely wait for a correction.
The analyst identified investors not by their numbers but by liquidity interested in entering the markets. He also noted that Bitcoin's net fund inflow is positive for the markets and indicates increased interest from institutional parties, as shown by ETF inflow.
However, according to Van de Poppe, these institutions are not the only participants in the markets and do not increase the value of Bitcoin on their own. Van de Poppe expects to see organic corrections and a longer cycle due to macroeconomic events such as CPI, FOMC, GDP and liquidity rather than crypto-specific events.
Van de Poppe believes Ethereum is significantly undervalued. The analyst compared Ethereum's price action to that of Bitcoin and noted that while Bitcoin was at $15,000, most people expected further declines, while all major news events were already priced in.
The analyst highlighted the upcoming Dencun update, which will make Ethereum more accessible as a payment layer by reducing transaction costs for Layer 2s by 90%. This, combined with the potential Spot ETF approval, could trigger significant momentum towards the Ethereum network.
The analyst suggested that if Ethereum's valuation were to be in the same phase as Bitcoin's current price, it should be at $3,800-4,200. He predicts that Bitcoin will consolidate and money will pivot towards Ethereum.
Van de Poppe emphasized the term “Altcoin season”, which emerged in 2017, when all cryptocurrencies were rising rapidly, and a rotation system was experienced in the markets, in which Bitcoin moved first, then Ethereum, and then others.
But now things are more complicated, he noted. For example, investing in the Solana ecosystem over the past few months has launched an investor into altcoin season, while investing in Ethereum ecosystem altcoins will require them to catch up later, as many of these tokens have underperformed, according to the analyst.
Van de Poppe concluded his words by predicting that Bitcoin will peak relatively soon to $54-58 thousand and experience a sharp correction to $45-48 thousand.
*This is not investment advice.