Glassnode, the analytics platform, has made a bold prediction regarding the altcoin market cap, stating that it will experience a staggering 350% surge following the recent correction. Co-founders Jan Happel and Yann Allemann, known as Negentropic on X, have compared the current alt market cap to the structure witnessed in 2021, where a sudden retracement was followed by a massive bull run. Utilizing the Elliott Wave theory in their analysis, which suggests that assets typically undergo a five-wave rally, they confidently assert that the crypto bull market is ongoing. They emphasize that while the largest ten cryptos are excluded, other cryptocurrencies are following suit. The recent strong decline in the altcoin market is believed to be similar to a wave four correction experienced earlier this year, indicating that there is still more upside potential. By examining various indicators, such as the index and Fibonacci levels, the founders are convinced that there could be a significant 350% increase from current levels.

Furthermore, the Glassnode founders also highlight the weakening strength of the US dollar index (DXY) as an additional bullish catalyst for the crypto market. They suggest that the DXY recently reached its peak in an expanding diagonal pattern, signaling an impending downward movement. This potential decline in the US dollar may serve as a catalyst for a renewed bull market for Bitcoin (BTC).

In addition to these factors, the founders share their insights on the impact of spot BTC exchange-traded funds (ETFs) on prices. Contrary to popular belief, they argue that ETF investors are not the cause of price declines but rather react to them. They acknowledge that ETFs have the potential to influence both short-term price fluctuations and long-term investment and trading behaviors. However, they note that significant outflows from ETFs often align with notable price drops in the Bitcoin market, indicating that investors tend to respond to existing downturns rather than instigating them. This suggests that investor behavior during times of market volatility is primarily reactive, which is crucial for understanding the causality of price movements.

At the time of writing, Bitcoin is trading at $66,434, experiencing a slight decrease over the last 24 hours. As the market continues to evolve, it is important for investors to stay informed and exercise caution when engaging in high-risk investments. The Daily Hodl provides valuable insights and information, but it is crucial for individuals to conduct their own due diligence before making any investment decisions. It is also worth noting that all transfers and trades carry inherent risks, and any losses incurred are the responsibility of the individual. The Daily Hodl does not provide specific investment advice or endorse the buying or selling of cryptocurrencies or digital assets.