Renowned analyst and trader Michaël van de Poppe has outlined four potential catalysts that could rejuvenate the cryptocurrency bull market following this week’s widespread sell-off.

Van de Poppe shares with his 721,400 followers on the social media platform X that significant inflows into both spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) in the coming weeks could ignite a rally in the crypto market. He emphasizes, “If ETH, particularly, begins to show positive movement, that would serve as the perfect trigger for a market surge.”

He also points to deteriorating macroeconomic conditions as a factor that could lead to a spike in gold prices and a decline in the US dollar, which he believes would create favorable conditions for risk assets like Bitcoin. “Ongoing market turmoil, resulting in gold hitting new highs while the dollar and U.S. Treasury yields drop, would act as a catalyst for a market rally.”

Additionally, van de Poppe suggests that a bullish shift could occur if crypto assets regain critical support levels, such as the ETH/BTC ratio. “If certain levels are reclaimed, for example, if ETH manages to stay above 0.044-0.045 BTC and begins to reverse upwards, that would be significant.”

As of now, ETH/BTC is trading at 0.0449 BTC ($2,506).

Lastly, the analyst notes that the markets might react positively to a potential settlement in the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple. Ripple Labs CEO Brad Garlinghouse has reportedly stated, “We expect a resolution very soon, but can’t predict when the judge will make a ruling.”

The SEC initiated legal action against the San Francisco-based payments company in late 2020, accusing it of selling XRP as an unregistered security. A judge determined that Ripple’s automated, open-market XRP sales did not qualify as security offerings; however, he did agree with the SEC’s assertion that Ripple’s direct sales of XRP to institutional buyers were indeed securities transactions.

Van de Poppe also points out that one reason for optimism during this crypto market correction is the possibility that digital assets may find a bottom at their high timeframe support levels. “I believe this capitulation is substantial, but considering technical analysis, it is nearing its high timeframe support levels, representing the deepest panic we might witness.”

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Disclaimer: The views expressed in The Daily Hodl are not intended as investment advice. Investors are encouraged to conduct thorough research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your trades and transfers are conducted at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it serve as an investment advisor. Note that The Daily Hodl participates in affiliate marketing.
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