Crypto analyst Michaël van de Poppe highlighted the ongoing decline in altcoin prices, attributing it to market weakness and upcoming economic events.

What Happened: Michaël van de Poppe tweeted that altcoins are experiencing significant declines ahead of the upcoming Federal Reserve meeting which is a major contributing factor. He mentioned that altcoins have been correcting substantially over the past week due to several reasons, including overall market weakness and no conclusion on the Ethereum (CRYPTO: ETH) ETF.

He also noted that the "Roaring Kitty" saga has impacted altcoin prices, with some dropping by more than 20%. Van de Poppe emphasized that the real reason for the correction is the upcoming CPI data release and FOMC meeting on Wednesday, which often leads to downward momentum in the crypto markets.

Van de Poppe explained that a strong dollar and the continuation of quantitative tightening (QT) are not favorable for altcoins. He stated, "The past few times that Jerome Powell has been speaking, the crypto markets have been seeing a substantial correction." He also mentioned that the markets tend to go risk-off ahead of such events.

Also Read: Top Crypto Analyst Shuffles Altcoin Portfolio Before Ethereum ETF: Here’s What He Rotated Into

Why It Matters: Van de Poppe’s insights highlight the potential for further declines in altcoin prices due to economic factors. He noted that the unemployment rate has started to accelerate, and economic data has weakened, while the European Central Bank (ECB) has already begun rate cuts.

The trader also pointed out that the Ethereum ETF is likely to be approved soon, which could impact the market. He expressed optimism about a potential reversal, stating, "After the previous FOMC meetings, the markets quickly rebounded."

He mentioned that Ethereum and Bitcoin (CRYPTO: BTC) have seen significant gains following past meetings.

Van de Poppe mentioned personally being all-in into altcoins and expects a positive outcome from the FOMC and the speech of Jerome Powell, resulting in strength in the markets. The trading launch Ethereum ETFs will be an additional factor in the upcoming weeks.

What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Altcoins Down 70% Against Bitcoin: Here’s Why They Just Can’t Get Going

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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