- The co-founders of Glassnode predict a 350% rise in the market capitalization of altcoins, similar to the crypto bull run of 2021.
- The dynamics of the crypto market are influenced by spot BTC ETFs, which manage substantial volumes and frequently respond to market downturns.
After a recent pullback, Glassnode co-founders Jan Happel and Yann Allemann have predicted a huge 350% gain in the market cap of altcoins. By drawing parallels with the market’s conduct in 2021, they forecast the impending occurrence of another significant bull run.
The Echo of 2021: A Forming Rally
Happel and Allemann’s thorough investigation indicates that the market structure of the present bears resemblance to that of 2021, when an abrupt market pullback was swiftly succeeded by an explosive bull run.
They make the argument that the market is on a similar trajectory to the five-wave rally that was seen in early 2021 by applying the Elliott Wave theory.
The #Crypto Bull Market Continues.
"OTHERS" follows Crypto excl. the largest 10 Cryptos.
Observe that we in early 2021 had a strong correction. We believe that was a wave 4.
We now have a similar strong decline.More upside is coming. This index and our Fibonacci levels… pic.twitter.com/qKtIOSXneP
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) April 22, 2024
The US dollar index (DXY), which they say peaked earlier this month and formed an extending diagonal pattern, has performed well recently, supporting their optimistic perspective. It is believed that the dollar’s decline will spark a new bull market that will especially help Bitcoin (BTC).
By the way, according to CoinMarketCap data, the price of BTC is currently at $64,355.19 as of this writing, down 3.57% over the previous day. Additionally, it has a bullish position of 4.95% over the last 7 days.
ETFs’ Place in Cryptocurrency Volatility
Their analysis also emphasizes the impact of spot Bitcoin exchange-traded funds (ETFs). The founders claim that these exchange-traded funds (ETFs) manage substantial trading volumes that can influence both short-term price fluctuations and long-term market trends, in line with what ETHNews previously disclosed.
Their results, however, seem to indicate that rather than causing price falls, ETF investors typically respond to them. This suggests a primarily reactive behavior during periods of market turbulence, which is essential to comprehending the dynamics underlying price changes.