What’s Really Happening in the Crypto Market and When Will Altcoins Finally Take Off?

  • Reputed analyst shares what’s really happening in the crypto market.
  • He concludes that the bull run is not over and that liquidity conditions should improve soon. 
  • Altcoins will pump later in the cycle, as it historically has always done once liquidity pumps

One reputed crypto analyst shares his views on what’s really happening in the crypto market right now. He also goes on to address when will altcoins finally take off this bull cycle. He talks about how Bitcoin is still in an uptrend and how altcoins continue to struggle. Meanwhile, Trump is pushing for pro-crypto policies but there has been no bullish reaction in the crypto market. 

https://twitter.com/VirtualBacon0x/status/1899952087137403231

As we can see from the post above, the analyst shares a deep analysis on his take on the present state of the crypto market. Firstly, he addresses the fact that many believe the crypto market to be over, but since altcoins haven’t pumped yet, it only means that the latter part of the cycle when altcoins traditionally pump hasn’t arrived yet. 

Next, he talks about how Trump’s moves won’t move markets as many are paid partnerships. The Crypto Summit, he says, was a gathering of donors where no regulations were shaped and also highlights how his administration does not plan to accumulate crypto yet. Furthermore, political headlines don’t move altcoin prices. 

Following this, he talks about altcoin ETF speculation and calls this a distraction alongside tariff threats. For the latter, he says that tariffs always seem to cause panic but ultimately does not contribute to altcoin performance. He says the main force driving altcoin performance is liquidity. 

Then he highlights the biggest macro concern, which is recession fears. This factor has led to GDP growth slowing and pointing to a major downturn. Another point factoring in is unemployment rates, a growing rate could also trigger a recession. However, it is not recession fears either that are causing altcoin price stagnation, it is liquidity conditions. 

The analyst says that liquidity is tight due to the Fed shrinking balance sheets, the Reverse Repo Facility being drained, and the US Treasury running low. Until these constraints ease, altcoins will continue to struggle toward upward momentum. He follows this up by saying that liquidity cannot be tight forever.

Eventually, the Fed will have to act either by injecting liquidity into banks, by ending QT, or by purchasing US Treasuries to stabilize markets. The BTC price action reflects this arrival of a relief rally. Mirroring previous cycles, Bitcoin is near a short-term bounce. The analyst concludes by saying that he will continue to hold BTC, ETH, and high-conviction altcoins, exiting weaker altcoins on relief rallies, and stacking BTC while waiting for liquidity expansion.


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