Well-liked crypto analyst Nicholas Merten has made a prediction concerning the altcoin market. Based on Merten’s current DataDash replace, he anticipates a major decline within the altcoin market cap, primarily influenced by the plummeting worth of memecoin Pepe (PEPE).
Merten highlights that the present state of the altcoin market lacks any important catalyst to draw elevated liquidity. To help his prediction concerning the ongoing decline in altcoin market liquidity, Merten dives into the current value actions of three layer-2 scaling answer initiatives: Optimism (OP), Arbitrum (ARB), and Polygon (MATIC).
By analyzing the worth motion of those initiatives, Merten says that there’s a continued drain of liquidity from the altcoin market. Merten additionally says that Pepe is a telltale signal that the altcoin market is weakening.
“And if Pepe wasn’t the signal right here for you guys. I don’t know what’s. If the one factor that’s getting folks excited in this time period is a memecoin, which has been dumping right here over the previous couple of days. That is simply abysmal for the trade. Hypothesis doesn’t do effectively in contractionary environments,” he added.
In distinction to Merten’s perspective, crypto analyst Michael van de Poppe holds a special view, particularly with the upcoming Bitcoin halving occasion. Van de Poppe believes that now’s the suitable time to build up different cash or altcoins.
Based on his evaluation, the Bitcoin halving can doubtlessly result in elevated liquidity circulate into altcoins as traders search alternatives past the dominant cryptocurrencies.
He wrote, “For altcoins, the time to build up them has come. One 12 months earlier than the halving -> time to purchase these positions. Reached an vital stage right here, which can be approx. 1 12 months earlier than the halving.”