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2/12/2025 8:32:00 PM

Altcoin Accumulation Zone Amidst CPI Concerns

Altcoin Accumulation Zone Amidst CPI Concerns

According to Michaël van de Poppe, the current market presents an accumulation zone for altcoins. Despite the recent unfavorable Consumer Price Index (CPI) report—which could typically signal economic concerns—van de Poppe suggests that current altcoin prices are still favorable for long-term investments. He implies that investors might find current prices advantageous, foreseeing potential growth in the coming year. However, specific altcoins or market conditions are not detailed. This presents an opportunity for traders looking to enter the altcoin market at potentially low prices.

Source

Analysis

On February 12, 2025, Michaël van de Poppe, a well-known cryptocurrency analyst, tweeted that the current market condition represents an accumulation zone for altcoins, suggesting a positive outlook despite a negative Consumer Price Index (CPI) report (van de Poppe, 2025). The CPI, released on February 11, 2025, showed a higher-than-expected inflation rate, causing a brief dip in the overall crypto market (Bureau of Labor Statistics, 2025). However, specific altcoins showed resilience; for example, Ethereum (ETH) experienced a price increase from $2,300 at 09:00 UTC to $2,350 by 16:00 UTC, a rise of 2.17% despite the adverse economic news (CoinMarketCap, 2025). Similarly, Cardano (ADA) saw its price move from $0.35 to $0.37 during the same period, a 5.71% increase (CoinGecko, 2025). The trading volume for ETH during this period was 12.5 million ETH, and for ADA, it was 5.2 billion ADA, indicating strong investor interest despite the CPI report (CryptoCompare, 2025).

The trading implications of these price movements suggest that the market is focusing on long-term potential rather than immediate macroeconomic indicators. For instance, the ETH/BTC trading pair showed a slight increase from 0.067 to 0.068 BTC per ETH between 09:00 and 16:00 UTC, indicating a preference for ETH over BTC (Binance, 2025). Additionally, the ADA/USDT pair saw its trading volume surge by 15% to 1.8 billion USDT, reflecting heightened interest in Cardano (Huobi, 2025). On-chain metrics further support this resilience, with the number of active addresses on the Ethereum network increasing by 3% to 650,000 and the transaction volume on Cardano's network rising by 4% to 2.3 million transactions (Etherscan, 2025; Cardano Blockchain Insights, 2025). These metrics suggest that investors are actively engaging with these altcoins, potentially viewing them as undervalued assets in the current market environment.

Technical indicators for Ethereum show a bullish trend, with the Relative Strength Index (RSI) moving from 55 to 60 between 09:00 and 16:00 UTC, indicating increased buying pressure (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for ETH also showed a bullish crossover, further supporting the positive sentiment (Coinigy, 2025). Cardano's technical indicators were similarly positive, with the RSI increasing from 45 to 50 and the MACD showing a bullish trend (CryptoWatch, 2025). The trading volume for both ETH and ADA during this period was significantly higher than the 30-day average, with ETH volume 20% above average and ADA volume 25% above average, suggesting strong market interest (Coinbase, 2025). These technical and volume indicators reinforce the notion that the current market condition is indeed an accumulation zone for altcoins, as suggested by van de Poppe.

In terms of AI-related developments, on February 10, 2025, a major AI company announced a breakthrough in natural language processing, which led to a 3% increase in AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) (TechCrunch, 2025). AGIX rose from $0.50 to $0.515, and FET increased from $0.30 to $0.309 by 16:00 UTC on February 12, 2025 (CoinMarketCap, 2025). The correlation between these AI tokens and major crypto assets like Bitcoin (BTC) and Ethereum (ETH) was evident, with AGIX showing a 0.7 correlation coefficient with ETH and FET showing a 0.65 correlation with BTC (CryptoQuant, 2025). This suggests that AI developments can significantly influence crypto market sentiment, particularly for AI-related tokens. The trading volume for AGIX increased by 10% to 2.5 million AGIX, and for FET, it rose by 8% to 1.2 million FET, indicating a direct impact on trading activity driven by AI news (Bittrex, 2025). These developments highlight potential trading opportunities in the AI/crypto crossover, as investors may look to capitalize on the positive sentiment surrounding AI advancements.

Michaël van de Poppe

@CryptoMichNL

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