Cryptocurrency Market Recovery: Predictions and Analysis
After a long painful period for altcoins, the cryptocurrency market is showing strong signs of recovery. Ethereum has surged over 32% in just one week, bringing excitement to the investment community. However, the question remains: should investors take profits or continue to invest more?
China Ignites Growth
According to Michael van de Poppe, a well-known cryptocurrency trader and analyst, this growth phase did not start in the US but in China. The Chinese central bank has cut interest rates to a record low of 1.3% and reduced the amount of reserves banks need to hold. This is known as quantitative easing, which usually pushes more money into the market.
Poppe believes that the move from China has stimulated the global market, especially cryptocurrency. The strength of the yuan is increasing, which means the US dollar is weakening, which is often beneficial for Bitcoin and Ethereum.
Fed Keeps Interest Rates Steady
Meanwhile, the Federal Reserve's (Fed) meeting on May 7 decided to keep interest rates unchanged—no surprises. Investors are watching the rising unemployment rate and trade tensions that could force the Fed to cut interest rates.
If the unemployment rate in the US exceeds 5%, the Fed may be forced to lower interest rates to stimulate economic activity.
Ethereum Leads Altcoin Growth
Ethereum is not only rising in price but also outperforming Bitcoin by over 30%. This could be an early sign of an altcoin season, when smaller coins rise stronger than Bitcoin. Poppe also emphasizes two major catalysts for Ethereum's price increase.
Stripe now supports stablecoin payments on Ethereum. The new Pectra update is on its way, enhancing the Ethereum network, making Ethereum more useful than just an investment channel.
The Future for Altcoin Investors
Currently, the market is divided: some believe this is the beginning of a new growth phase, while others think it is just a short-term bounce. Poppe tends to be optimistic, believing that cryptocurrency follows a 4-year cycle: 2 years of bear market, followed by 2 years of bull market. According to him, the next major shift is starting.
The cryptocurrency market is changing rapidly. Investors need to carefully consider their strategies and stay attuned to developments to maximize the benefits from these fluctuations.
Source: https://tintucbitcoin.com/mua-altcoin-den-gan-du-doan-tu-chuyen-gia-crypto/
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