Altcoin Season Is Approaching — Here’s Why Top Crypto Experts Believe It Is
After a long period of pain for altcoins, the market is finally showing signs of recovery. Ethereum (ETH) has surged more than 32% in just one week, sparking excitement across the crypto space. But as the momentum builds, many investors are wondering: should they take profits or double down?
Let's analyze what's really driving this sudden surge and what it means for the coming months.
China lights up protests
Michael van de Poppe, a prominent cryptocurrency analyst and trader, said this bull run didn’t start because of anything the United States did. Instead, he said it all started with China.
Poppe further noted that China’s central bank has cut interest rates to a record low of 1.3% and also lowered the amount of money banks are required to hold in reserves. This is known as quantitative easing (QE) and typically pushes more money into the market.
Poppe believes that this move from China has boosted global markets, especially cryptocurrencies. He points out that the Chinese Yuan (CNH) is strengthening. When that happens, the US Dollar weakens, which is usually good for Bitcoin and Ethereum.
According to Poppe's chart analysis, whenever CNH/USD rises, ETH/BTC usually follows suit.
Fed interest rates remain unchanged
Meanwhile, the Federal Reserve kept interest rates unchanged at its May 7 meeting—no surprises there. While investors are now eyeing rising unemployment and tariff tensions, which could eventually force the Fed to cut rates.
If the US unemployment rate rises above 5%, the Fed may be forced to cut interest rates to boost economic activity.
Ethereum Leads Altcoin Surge
Not only is Ethereum gaining, but it is also outperforming Bitcoin by more than 30%. He said this could be an early sign of altcoin season, when smaller coins outperform Bitcoin.
Poppe also highlighted two major bullish drivers for Ethereum:
Stripe now supports stablecoin payments on Ethereum.
A new Pectra upgrade is being rolled out, improving the Ethereum network.
These upgrades make Ethereum more useful, not just something to invest in.
What happens next for Altcoin holders?
Poppe said the market is currently divided, with some seeing this as the start of a new bull run, while others see it as just a short-term recovery.
While Poppe is on the bullish side, he says cryptocurrencies follow a four-year cycle: two years of bear market followed by two years of bull market. And based on that, he believes the next big move is just beginning.