Crypto markets got a boost from a reported breakthrough on the CLARITY Act, although veteran trader Peter Brandt keeps warning that a deeper Bitcoin correction is coming.
- Ethereum, XRP beat Bitcoin on Tuesday as altcoins extend broader breakout from year-long downtrend
- Michael Van de Poppe said he was 98% allocated to altcoins, arguing that the market is entering a new bullish phase.
- He pointed to Bitcoin’s resilience through recent macro volatility and falling inflation data.
Crypto markets are showing a rotation out of Bitcoin (BTC) and into altcoins, which one closely watched analyst says marks the end of a year-long downtrend, while another says it is related to Washington finally clearing the biggest political hurdle to crypto’s most consequential upcoming legislation.
Ethereum (ETH) and XRP (XRP) were outperforming Bitcoin’s price both in terms of daily and weekly performance. ETH’s price and XRP’s price were both up over 3.7%, outpacing BTC’s 3.1% daily gains. On a weekly basis, ETH was up over 8%, XRP over 5.9% relative to BTC’s 5.6%. Message volume for XRP increased by 46.4% over the past 30 days on Stocktwits.
On Stocktwits, XRP was the top trending ticker. Retail sentiment around XRP improved to the ‘bullish’ from ‘neutral’ zone, while chatter stayed at ‘normal’ levels.
Ethereum was also one of the top trending tickers on Stocktwits. Retail sentiment around ETH moved to ‘extremely bullish’ from ‘bullish’ over the past day, while chatter stayed at ‘normal’ levels. Message volume for ETH increased by 64.4% over the past 30 days on Stocktwits.
On Stocktwits, the retail sentiment around BTC moved to ‘bullish’ from the ‘neutral’ zone, while chatter around it stayed in the ‘low’ levels over the past day. Message volume for BTC decreased by 18.3% over the past 30 days on Stocktwits.
Analyst Hints At New Bull Cycle For Altcoins
Altcoins were “finally breaking out of a one-year downtrend,” Van de Poppe, crypto analyst Michaël van de Poppe said on Monday. The founder and Chief Information Officer (CIO) of MNFund signaled that altcoins were entering a new bull cycle, which was a good opportunity to buy the dip before prices run higher.
He further discussed his plans of maintaining 98% of his portfolio allocated to altcoins. The analyst explained that altcoins tend to move in waves. With the markets showing signs of a strong breakout coming, the risk of holding through the current setup would increase rather than decrease, prompting him to rotate more actively between tokens rather than exit altogether.
Why The Bottom Is In
Van de Poppe pointed to several factors behind the shift.
Renewed conflict around the Strait of Hormuz, including a brief US move to tax ships passing through the waterway before reversing course, briefly pushed oil prices higher and dragged Bitcoin, gold and the Nasdaq (NDAQ) lower together. He also pointed out that SpaceX (SPCX) had seen its share price decline.
However, Bitcoin held its two-year weekly moving average during the turmoil, Van de Poppe noted. “You would need an atomic bomb” to take the asset down to the $30,000 level many traders have been expecting, he said.
He also said the more important signal to watch was bond yields, pointing out that US inflation data has posted its biggest drop since 2020.
However, he vouched for his position for Avalanche (AVAX) and said that Avalanche has seen strong growth in its network, but its token price hasn’t kept up, prompting him to start building a position in AVAX.
Why Today’s Market Is Green
Tuesday’s rally also came as crypto markets reacted to a breakthrough on the Digital Asset Market Clarity Act, or the Clarity Act.
The market’s gains came from the White House reportedly agreeing to ethics language covering President Trump’s crypto holdings, the “conflict-of-interest rule” that had stopped the bill’s path to the Senate floor for months, said Simon Dedic, founder and managing partner at Moonrock Capital.
A More Bearish Voice
But not everyone was as optimistic about the near-term.
Veteran trader Peter Brandt told Cointelegraph on Saturday that he still expected Bitcoin’s bear market to bottom on October 4, this year, with prices possibly falling into the high-$40,000s before that low is set.
Read also: White House Reportedly Backs Trump Ethics Language As CLARITY Act Push Enters The Final Stretch
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