Michaël Van de Poppe: Market Crash Attributed to Japanese Yen Carry Trade and Jump Trading's $500M ETH Liquidation

In a recent video, popular crypto analyst Michaël Van de Poppe shared insights into the recent market crash, attributing it largely to the Japanese Yen

Popular crypto analyst Michaël Van de Poppe recently shared his analysis of the recent market crash in a video. He largely attributes the crash to the Japanese Yen Carry Trade and a massive sell-off by Jump Trading, which liquidated a $500 million Ethereum (ETH) position. This sell-off triggered a Nikkei crash and a 30% drop in Bitcoin. He explains that Ethereum’s heavy correction is a result of its lower supply and higher staking rate compared to Bitcoin, which makes it more volatile.

Despite the sell-off, there is some optimism, as the Ethereum ETF saw inflows of over $100 million last week, indicating a bullish market sentiment. Even with Ethereum’s problems, Van de Poppe believes this correction is a normal part of the cycle and suggests that the market may be close to a bottom, with potential signs of an upcoming bull phase.

Altcoins to Watch for the Rebound

When it comes to altcoins, Van de Poppe has a specific strategy for positioning in the upcoming weeks. He suggests focusing on sectors that are likely to bounce back the strongest, specifically AI, DeFi, and meme coins. Within these sectors, he identifies several key picks:

Fetch.ai (FET)

In the AI sector, Fetch.ai has shown a strong recovery with a 70% bounce from recent lows. Van de Poppe sees this as a prime candidate for further growth, with potential 5-10x returns from its current levels.

Aave (AAVE)

Moving to the DeFi ecosystem, his next pick is Aave. He highlights that Aave’s total value locked (TVL) in relation to its market cap suggests it is heavily undervalued, indicating potential for significant upside.

REN (Ren)

Another DeFi token that catches his eye is REN, which he believes is also undervalued relative to its TVL. While advising caution, he sees potential for growth as the market recovers.

GMX

In the decentralized finance (DeFi) space, GMX is another altcoin to watch, especially as activity increases.

SingularityNET (AGIX)

As another AI-focused project, SingularityNET has shown strong performance and promise. Like FET, Van de Poppe thinks AGIX will benefit from crypto’s AI integration and believes the recent downturn is a good time to buy AGIX before the market recovers.

Solana (SOL)

Solana’s strong performance in the DeFi space is a key factor in his bullish outlook on SOL. He notes that Solana has bounced back strongly from the recent correction and demonstrated its resilience in a challenging market environment. He sees Solana as a major contender for future growth, especially as the market recovers.

Is it the End of the Bear Market?

For those trying to gauge the market’s next move, Van de Poppe highlights several key indicators. Bitcoin dominance is currently at 54%, which is nearing its peak and has historically signaled the end of bear markets for altcoins and the beginning of bullish trends. He also suggests keeping an eye on ETH’s performance against both Bitcoin and USD Tether (USDT) for further insights into the market’s direction.

By positioning himself in these altcoins, particularly those in the AI and DeFi sectors, Van de Poppe believes they could lead the charge in the next bull run.