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The crypto market has faced one of its longest and toughest periods for altcoins. Many investors who held through this phase are sitting on steep losses, with prices struggling to recover despite strong macro signals. Analyst Michael van de Poppe believes this exhaustion phase could be nearing its end.
According to him, the recent correction after the Federal Reserve’s latest meeting has shaken market confidence, but the underlying data shows a shift is coming. The Fed decided to cut rates by 25 basis points and plans to end quantitative tightening by December 1. This move could mean that the tightening phase of the cycle is almost over—a condition that has historically marked the start of new bull markets.
End of Tightening Could Mark a Turning Point
In previous cycles, similar monetary policy changes have triggered massive runs in crypto. In 2020, when the Fed began cutting rates and launched quantitative easing, Bitcoin and altcoins entered a powerful bull phase. On the flip side, the tightening and rate hikes that began in late 2021 started the bear market investors are still feeling today.
This time, conditions again point to a transition. Inflation is no longer the Fed’s main concern; employment and economic growth are taking priority. Weak labor and business data could force the Fed into more rate cuts. That would boost liquidity and create a favorable environment for risk assets, including cryptocurrencies.
Gold Peaks, Risk Assets Prepare to Move
Van de Poppe said that gold, often a signal of risk-off sentiment, has recently peaked and fallen by nearly 10 percent. Historically, when gold cools off after a strong run, money begins flowing back into risk-on assets such as stocks and crypto.
Bitcoin remains in a tight range around the $109,000 level, but its valuation compared to assets like gold and copper suggests it is undervalued. Van de Poppe expects this lag to close as liquidity shifts, potentially sending Bitcoin toward $150,000–$170,000 in the coming quarters.
As Bitcoin regains momentum, altcoins are likely to follow. Many smaller cryptocurrencies are already showing signs of bullish divergence, a pattern that often marks the beginning of a recovery.
The Setup for the Next Altseason
While the market reaction to the Fed meeting was negative in the short term, the longer-term setup looks increasingly favorable. The end of quantitative tightening, possible rate cuts, and a cooling gold market all point toward a return to risk-taking.
This combination could mark the early stages of a new cycle. Altcoins, which have been in deep correction for months, may finally see relief once Bitcoin breaks key resistance around $112,000.
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