Greed

Reserve Dollar

FOMC

Bitcoin

April

The broader cryptocurrency market has come under the grip of bears with Bitcoin ETFs seeing $162 million in outflows a day before the <a href="https://coingape.com/possible-outcomes-of-fomc-meeting-how-would-bitcoin-and-crypto-market-react/" target="_blank" rel="noopener">FOMC meeting</a>. Higher inflation print could likely nullify the chance of Fed rate cuts this year. In the last 24 hours, the Bitcoin price has tanked 5% slipping under $60,000 while altcoins are seeing an even deeper correction. 
<h3 id="altcoins-to-see-even-deeper-corrections">Altcoins To See Even Deeper Corrections</h3> 
Crypto analyst Benjamin Cowen recently shared insights suggesting a potential correlation between altcoin-to-Bitcoin (ALT/BTC) pairs and impending rate cuts. Cowen drew parallels with the previous cycle, noting ALT/BTC pairs’ capitulation just before rate cuts. He speculated that history might repeat itself, implying a further 40% decline in ALT/BTC pairs over the coming months. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Last cycle, we saw <a href="https://twitter.com/hashtag/ALT?src=hash&amp;ref_src=twsrc%5Etfw">#ALT</a> /<a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> pairs capitulate just before rate cuts. 
 Perhaps this time is not different? This would mean ALT/BTC pairs drop another 40% from here over the next few months. 
 Short-term countertrends do not invalidate this view. <a href="https://t.co/BK3VIrCBJ2">pic.twitter.com/BK3VIrCBJ2</a> 
 — Benjamin Cowen (@intocryptoverse) <a href="https://twitter.com/intocryptoverse/status/1785310389976043682?ref_src=twsrc%5Etfw">April 30, 2024</a>
</blockquote> 
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Despite short-term countertrends, <a rel="nofollow" href="https://twitter.com/intocryptoverse/status/1785023496398962929" target="_blank">Cowen</a> maintained his perspective, highlighting the ongoing struggles of altcoins amidst plummeting social interest. He pointed out a lack of concern among investors, paralleling the scenario to that of 2019. During that period, social interest also declined before rate cuts, and ALT/BTC pairs bottomed out when the Federal Reserve adjusted its stance. 
<h3 id="may-could-be-tough-for-bitcoin-and-crypto">May Could Be Tough for Bitcoin and Crypto</h3> 
The <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener">Bitcoin price</a> has extended its losses, as it trades at $59,500 levels as of press time. The month of April turned out to be the worst-performing month for Bitcoin after the FTX collapse in November 2022. Market analysts are pointing out a further downside for the BTC price to $52,000, if it breaks under $58,000, its 100-day EMA. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 The last time <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> tested the 100-day EMA while the RSI dipped to 36 was in late January, sparking a major price rebound. 
 Now, <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> is back at these levels! However, be cautious— a sustained close below the 100-day EMA might signal a drop toward the 200-day EMA. <a href="https://t.co/cAxsq5ZaQI">pic.twitter.com/cAxsq5ZaQI</a> 
 — Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1785346977326043627?ref_src=twsrc%5Etfw">April 30, 2024</a>
</blockquote> 
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Market analyst Patric H. anticipates a challenging emotional ride for Bitcoin and altcoin investors in May. He suggests that within the next 2-6 weeks, there may be a final shake-out period before a potential breakout occurs. He added that the sentiment is too euphoric as the Fear and Greed Index shows towards the “Greedy” side. 
Patric <a rel="nofollow" href="https://twitter.com/CryptelligenceX/status/1785361442796892485" target="_blank">added</a>: “The market is losing momentum as we observe continued <a href="https://coingape.com/bitcoin-etf-outflows-surge-to-161-million-ahead-of-fomc/" target="_blank" rel="noopener">outflows from </a>Bitcoin ETFs. Coupled with the underwhelming debut of the HK ETF, which posted only $11M in trading volume (instead of the expected $300M), investor expectations are not being met”. 
With anticipation building up for the Federal Reserve’s interest rate announcement scheduled for Wednesday, anxiety has enveloped the market, leading to a surge in the dollar index as investors seek safety. These developments have played a role in the downturn witnessed in the crypto market. As a result, the market seems to be in the state of uncertainty, lacking clear directionality until the interest rate announcement is made. 
The post <a href="https://coingape.com/altcoins-can-see-40-drop-against-btc-pairs-over-the-next-few-months-says-analyst/">Altcoins Can See 40% Drop Against BTC Pairs Over The Next Few Months, Says Analyst</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Altcoins Can See 40% Drop Against BTC Pairs Over The Next Few Months, Says Analyst

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