As noted by Michaël van de Poppe in a recent tweet, there’s been a “constant bleed” with “zero reversal,” leading to significant decreases, with some altcoins experiencing an 80% drop this year alone. While expectations for this year were high, the market’s performance has deviated, leading some to believe this cycle is fundamentally different from previous ones.

Despite the prevailing sentiment, van de Poppe suggests that the current period mirrors the end of 2019 or 2020, a time that ultimately preceded significant market movements. The slow bleed in altcoin markets, while painful, often signals an impending shift.

Why the Downturn?

According to van de Poppe, the current bearish trend in altcoins requires little effort to sustain. A “downwards spiral” can be maintained by a “handful of tokens” pushing valuations down. While a slow bleed persists, there’s also evidence of accumulation through increasing trading volumes.

Should a reversal occur, it’s expected to trigger a significant number of “short liquidations,” which would reward those holding long positions. This scenario draws parallels to 2019, where:

Ethereum ($ETH) saw a low in April ’25 (note: the source text indicates April ’25 but the current date is June 2025, suggesting this might be a typo and likely refers to April ’19 in comparison to 2019 data).
The Chinese Renminbi experienced a low in the same period.
Gold reached a high during this time.

The current valuation of Gold, coupled with global market uncertainty and a reduced risk-off appetite, places us at a critical low point in the business cycle, similar to the lows observed at the end of 2019 and during 2016, both of which marked bottoms for the altcoin markets.

The Path to Recovery

While an initial push on Ethereum has occurred, showing a 40% outperformance versus Bitcoin, van de Poppe highlights that the broader altcoin market lacks confidence and positive sentiment. What’s needed to reignite the altcoin market is another significant upward push from Ethereum, driven by a surge in Bitcoin.

The crucial moment, as per van de Poppe’s analysis, will arrive when Bitcoin “bottoms out and attacks $106,000.” This milestone is seen as the catalyst for Ethereum to continue its outperformance, which in turn will pave the way for altcoins to “start shining.” Once this happens, altcoins are expected to “heavily outperform on the markets.”

In essence, patience is key. The current market conditions, while challenging, are viewed by van de Poppe as a necessary phase before the next significant upward movement for altcoins.

The post The Altcoin Market: What Could Be Next? appeared first on Coindoo.

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Filed under: Bitcoin - @ June 21, 2025 5:28 pm