With the slight decline in bitcoin (BTC), alternative cryptocurrencies also known as altcoins have fallen. Thus, those who bought at higher prices, as is the case of the renowned trader Michaël van de Poppe, are currently at losses. However, this does not remove all bullish expectations for the moment.

“The sentiment has changed towards ultra negative, where people no longer expect anything from altcoins,” van de Poppe commented on the matter. For the specialist, this state is understandable, although far from being afraid, he sees this panorama as an opportunity . “That's when I invest,” he added about these types of moments.

The trader revealed that since May he has been accumulating altcoins and has covered his entire risk investment portfolio in these crypto assets. “That means I'm currently down 20-30%, which I'm happy to accept since my upside is bigger,” he said in line with his bullish view.

As reported by CriptoNoticias, the fall of altcoins is due in part to the lack of usefulness of many, as well as the current low demand due to the summer and high interest rates in the United States.

According to the analyst, there are many arguments that suggest that the cryptocurrency bear market will continue . However, news this week makes you think that this scenario can be reversed. This is the SEC, the American securities regulator, which suspended the investigation into Ethereum for the launch of ether (ETH) exchange-traded funds (ETFs).

After that news, we can see that there was a momentary bullish momentum in cryptocurrencies, while the dominance of ETH has grown since the launch of Ethereum ETFs was approved a month ago in the United States.

“That is a strong reaction and shows some more important data, which correlates with the fact that the markets will probably get an Ethereum ETF in two weeks,” van de Poppe says.

Ethereum ETF Approval May Be Underrated

“The Ethereum ETF is such a big event… but it is not receiving the enthusiasm that we have seen with the Bitcoin ETF,” the analyst contrasts, noting that it seems undervalued. He emphasizes that, with this, ETH can be considered a commodity , which changes the view on cryptocurrencies in general .

BTC ETFs have raked in more than $13 billion since their launch in January. “I don't expect the same entry into Ethereum ETFs, but just 10-20% of Bitcoin's will already take Ethereum to a new all-time high and take the entire ecosystem to the next level,” van de Poppe considered.

According to their perspective, an event of “selling the rumor and buying the news” is taking place. In other words, visualize supply pressure before the launch of the ETFs and demand strength afterwards.

Furthermore, if bitcoin surpasses its all-time high of $73,700 recorded three months ago, a level from which it is currently trading 10% down, enthusiasm may spread to the altcoin market. For the analyst, given this, altcoins “will probably start to skyrocket like rockets.”

Cryptocurrencies would have already hit bottom to rise

With this context, the analyst predicts that cryptocurrencies will continue to gain momentum. But, if that does not happen, he projects a final capitulation with falls between 20% and 30%, although he sees this as unlikely due to the change in sentiment. In his vision, the bottom has already been hit. “It is the same conversation that we have seen with bitcoin at USD 16,000,” he said.

Van de Poppe believes that the bottom of the altcoin market was marked by the approval of Ethereum ETFs , as it was not anticipated by the market. Since then, as seen below, the price of ether measured in bitcoin has been rising.

Historically, in each cycle of bitcoin, its price begins to rise, followed by that of ether and then altcoins in general . For van de Poppe, the market is currently in that second stage and, due to the low capitalizations of cryptocurrencies compared to BTC, he maintains that they can generate a higher return on investment.

Meanwhile, ETH is currently trading 30% below its all-time high of $4,900 set nearly three years ago in 2021. This comes while bitcoin continues to consolidate the area below the new all-time high it hit three months ago.