Well-known crypto expert Michaël van de Poppe (@CryptoMichNL) made a post on X about how Ethereum ETF could affect the broader altcoin market. The crypto community is debating whether altcoins will continue their struggles or be ready to make a comeback. Van de Poppe has a different view, saying the Ethereum ETF could be an important, but undervalued, factor for the market.
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The Underappreciated Ethereum ETF
Unlike the much-talked-about Bitcoin ETF, the Ethereum ETF hasn’t gotten much attention or hype. Van de Poppe argues this lack of attention could be a mistake. He thinks the Ethereum ETF might have a bigger percentage impact on its underlying asset than the Bitcoin ETF.
The analyst points to several factors supporting this view:
- Ethereum’s lower stock-to-flow ratio compared to Bitcoin, due to staking and its deflationary mechanism.
- Ethereum’s role as a compliant settlement layer and foundation for the Web 3.0 ecosystem.
- The potential for accelerated growth if Ethereum breaks through the 0.06 BTC level.
Ecosystem Effects and Market Cycles
Van de Poppe extends his analysis beyond Ethereum itself, suggesting that a strong performance from ETH could have a ripple effect throughout its ecosystem. Projects like Arbitrum and Optimism could see reversals as increased usage drives liquidity and developer activity to the Ethereum network.
The analyst also points to historical market cycles, noting that altcoins often experience weakness in the first half of the year before gaining momentum from June onward. He cites Chainlink’s performance in 2022 and 2023 as an example, where the asset saw gains of over 150% in its BTC pair from lows in May and June.
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Macroeconomic Factors at Play
Van de Poppe doesn’t ignore the broader economic context, discussing the potential impact of Federal Reserve rate cuts and declining Treasury bond yields. He argues that these factors, combined with weakening economic data in the U.S., could set the stage for a reversal in the crypto market, benefiting Bitcoin, Ethereum, and the wider ecosystem.
Despite current market sentiment and downward pressure on altcoins, van de Poppe maintains a bullish outlook. He expresses confidence in his strategy and thesis, viewing the current correction as an opportunity rather than a cause for concern.
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