Altcoin Market May Be Set for a Comeback as Macro Forces Align

The crypto market has taken a strong interest in altcoins despite the recent downturn. While investor sentiment soured over last quarter, it seems like the tides may be turning, according to crypto analyst Michaël van de Poppe.

As global liquidity trends are increasingly crucial for risk assets, China is rolling out new rounds of quantitative easing, Europe is easing interest rates, and U.S. policymakers are hinting at cutting rates. This will benefit Bitcoin (BTC) and altcoins with fresh money.

As we covered previously, rare assets like Bitcoin tend to perform well when the money supply (M2) is expanding. We’re now seeing that pattern again.

Furthermore, gold has been rallying strongly, outperforming the S&P 500 since 2022, indicating increasing risk appetite. However, van de Poppe believes that gold’s momentum might be peaking.

If gold’s rally cools off, capital could rotate into riskier plays like crypto over the next 12–18 months, setting up a favorable environment for altcoins.

Another metric van de Poppe is closely monitoring is the Chinese Yuan’s performance against the U.S. Dollar (CNH/USD).

Historically, when this pair bottoms out, major altcoin rallies have followed—as seen in 2016 and 2019. Following sharp recent declines, the yuan seems to be stabilizing, which could signal a new uptrend in the crypto markets.

“Old models and cycles are losing strength. Instead, it’s about total liquidity, global monetary policy shifts, and the flow of funds that will create the next explosive phase for #altcoins and #bitcoin.”

The macroeconomic factors are becoming increasingly dominant in a market that’s used to technical indicators and on-chain analysis.