Analyzing the Recent Bitcoin (BTC) and Altcoin Market Dip: Expert Predictions for Post-May 15th Scenario
- Crypto analyst Daniel Yan has shared his predictions for Bitcoin and altcoins for the month of May.
- Yan believes the market will remain calm until May 15, with the U.S. Consumer Price Index (CPI) data on that day determining the direction for the second half of the month.
- He also predicts that Solana, AI, and Memecoin categories will outperform Bitcoin in May, making them the best choices for compensation trade.
Crypto analyst Daniel Yan provides insights into the expected performance of Bitcoin and altcoins in May, highlighting the potential of Solana, AI, and Memecoin categories.
Analyst’s View on the Crypto Market
Before sharing his detailed analysis, Yan mentioned that he closely follows the Federal Open Market Committee (FOMC) meetings and macro data. He addressed three main questions: Why was there a crash in April? Can such a crash be justified? What will happen in May?
Factors Behind the Crypto Crash
According to Yan, two main factors caused the crash in Bitcoin (BTC) and Ethereum (ETH), and an additional factor led to a larger-scale crash in altcoins. First, persistent inflation and a hot labor market in the U.S. caught the macro market on the wrong side, leading to a significant sell-off in U.S. Treasury bonds, to which cryptos are sensitive. Second, the BTC ETF flow reversed in April. The market expected the ETF to behave like stock ETFs, where people tend to invest continuously and are not very price sensitive. However, people are using it more as a trading tool, buying high and selling low.
