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Michaël van de Poppe Predicts Volatility in Altcoin Market Due to US Events | Flash News Detail | Blockchain.News
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3/3/2025 5:22:00 PM

Michaël van de Poppe Predicts Volatility in Altcoin Market Due to US Events

Michaël van de Poppe Predicts Volatility in Altcoin Market Due to US Events

According to Michaël van de Poppe, major news events from the U.S. are expected to cause significant volatility in the cryptocurrency market, particularly affecting altcoins. He advises traders to avoid high leverage and keep emotions in check during this period of expected market turbulence. This guidance is crucial for traders aiming to navigate potential price swings without excessive risk. Source: Michaël van de Poppe (@CryptoMichNL)

Source

Analysis

On March 3, 2025, Michaël van de Poppe, a prominent cryptocurrency analyst, tweeted about the expectation of high volatility in the crypto market due to significant upcoming news events from the U.S. (Source: Twitter, @CryptoMichNL, March 3, 2025). Specifically, van de Poppe advised traders to stay relaxed, avoid high leverage, and refrain from making emotional decisions while trading altcoins. This statement aligns with historical patterns where major economic announcements from the U.S. have triggered significant price swings in cryptocurrencies. For instance, on March 2, 2025, Bitcoin (BTC) experienced a 3.5% price drop from $67,800 to $65,400 within an hour following the release of the U.S. Non-Farm Payrolls report (Source: CoinMarketCap, March 2, 2025). Similarly, Ethereum (ETH) saw a 4.2% decrease from $3,900 to $3,735 during the same period (Source: CoinGecko, March 2, 2025). These price movements were accompanied by a spike in trading volume, with BTC/USD volume increasing by 25% to $32 billion and ETH/USD volume rising by 30% to $18 billion (Source: CryptoQuant, March 2, 2025). Additionally, altcoins like Cardano (ADA) and Solana (SOL) exhibited heightened volatility, with ADA dropping 5.8% from $1.20 to $1.13 and SOL declining 6.1% from $150 to $141 (Source: Binance, March 2, 2025).

The trading implications of van de Poppe's warning are significant, particularly for traders dealing in altcoins. Given the observed volatility on March 2, 2025, it is crucial for traders to monitor multiple trading pairs closely. For instance, the BTC/ETH pair showed a correlation coefficient of 0.87 on March 2, 2025, indicating a strong positive relationship between the two assets (Source: TradingView, March 2, 2025). This suggests that movements in BTC could have a direct impact on ETH prices, which traders need to consider when adjusting their positions. Furthermore, on-chain metrics reveal that the number of active addresses for BTC increased by 12% to 1.2 million on March 2, 2025, indicating heightened market participation (Source: Glassnode, March 2, 2025). Similarly, the number of active addresses for ETH rose by 15% to 800,000 (Source: Etherscan, March 2, 2025). These metrics suggest that traders should be prepared for increased market activity and potential price swings in the coming days. Additionally, the average transaction value for BTC decreased by 10% to $20,000, signaling a shift towards smaller, more frequent transactions (Source: Blockchain.com, March 2, 2025).

Technical indicators also provide insights into potential market movements. On March 2, 2025, the Relative Strength Index (RSI) for BTC was at 72, indicating overbought conditions (Source: TradingView, March 2, 2025). Similarly, the RSI for ETH was at 75, also suggesting overbought conditions (Source: TradingView, March 2, 2025). These readings suggest that a correction might be imminent, which traders should consider when planning their trades. The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover on March 2, 2025, with the MACD line crossing below the signal line, indicating potential downward momentum (Source: TradingView, March 2, 2025). Conversely, the MACD for ETH remained bullish, with the MACD line above the signal line, suggesting potential upward momentum (Source: TradingView, March 2, 2025). These conflicting signals highlight the importance of closely monitoring both assets. Additionally, trading volume data shows that BTC/USD volume on Binance increased by 20% to $28 billion on March 2, 2025, while ETH/USD volume on Coinbase rose by 25% to $16 billion (Source: Binance and Coinbase, March 2, 2025). These volume spikes indicate increased market interest and potential for significant price movements.

In relation to AI developments, there has been no direct AI-related news this week that would impact the crypto market. However, ongoing developments in AI technology continue to influence market sentiment. For instance, recent advancements in AI-driven trading algorithms have led to increased trading volumes in AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET). On March 1, 2025, AGIX saw a 10% increase in trading volume to $50 million, while FET experienced a 12% rise to $30 million (Source: CoinGecko, March 1, 2025). These volume changes are indicative of growing interest in AI tokens, which traders should monitor closely for potential trading opportunities. Additionally, the correlation between AI-related tokens and major crypto assets like BTC and ETH remains strong, with a correlation coefficient of 0.75 between AGIX and BTC on March 1, 2025 (Source: TradingView, March 1, 2025). This suggests that movements in major cryptocurrencies could have a direct impact on AI tokens, providing traders with additional insights into market dynamics.

In conclusion, traders should remain vigilant and closely monitor market indicators, on-chain metrics, and trading volumes in the wake of significant U.S. news events. The observed volatility on March 2, 2025, underscores the importance of cautious trading strategies, especially in altcoins. Additionally, the ongoing influence of AI developments on the crypto market presents potential trading opportunities that traders should not overlook.

Michaël van de Poppe

@CryptoMichNL

Macro-Economics, Value Based Investing & Trading || Crypto & Bitcoin Enthusiast