Altcoin flash crash is opportunity says expert 
Cryptocurrency Dec 20, 2024 Share
The wider cryptocurrency market entered a strong bull run on November 5, the day that the United States presidential election was held.
In the following weeks, Bitcoin (BTC) struggled to breach the $100,000 price point — and as the deadlock extended, altcoin season came — a period when other cryptocurrencies outperformed the world’s largest digital asset.
However, things took a dramatic turn for the worse on December 18, when the Federal Reserve (FED) Federal Open Market Committee (FOMC) meeting was made public. While the bodies did end up going with an expected 25 basis point rate cut, they also announced that only two rate cuts will come in 2025 — whereas investors were expecting to see four.
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While the immediate reaction was negative, the newfound bearish sentiment was bolstered on December 19 and 20, as roughly $1.4 billion in open crypto positions was liquidated. Bitcoin prices fell to $94,170 — having marked a 7.75% drop on the daily chart.
BTC price daily chart. Source: Finbold
There does appear to be a silver lining, however — one notable cryptocurrency expert expects the dip to be temporary — and is recommending that investors should go long at these newfound discounts.
Michael van de Poppe sees buy the dip opportunity on alts
In the early hours of December 20, renowned crypto analyst Michaël van de Poppe shared a chart and reflected on the current state of affairs in an X post.
Surprisingly enough, he didn’t share the overly pessimistic tone of many of his peers — in his own words “These are opportunities and those drops will continue to happen.“
From here on out, van de Poppe expects that Bitcoin will consolidate and altcoins will enter their next run. Finally, the analyst identified two areas of interest — the first being the $89,584 price point, with the second at $85,327.
Although a drop to these levels would most likely extend the downturn, if the trading expert’s predictions of recovery come true, the decrease in price would indeed represent a good buying opportunity.
BTC price chart and analysis. Source: Michaël van de Poppe on X
As traumatic as these sudden moves to the downside can be, the theses behind the crypto bull run haven’t changed. Institutional adoption is increasing, the upcoming Trump administration appears to be quite pro-crypto, and interest rates will continue falling, although at a reduced pace.
Once all is said and done, the odds appear higher that the market will recover quickly — it remains to be seen, however, if van de Poppe’s prediction of a new altcoin run will come true.
Featured image via Shutterstock