Saad Ullah
Bitcoin cryptocurrency shows promise of strong market recovery despite current price corrections, with favorable CPI data signaling potential gains ahead.
Bitcoin (BTC) Analyst Michael van de Poppe Predicts Major Crypto Rally
Michael van de Poppe, a prominent cryptocurrency analyst and trader based at the Amsterdam stock exchange, has recently shared his optimistic outlook for the crypto market on the social media platform X (formerly known as Twitter). According to van de Poppe, there are clear indications that "a great bull market" for cryptocurrencies, including altcoins, is on the horizon. His prediction is based on several key metric updates that have been released recently.
Lower CPI Numbers Boost Bitcoin (BTC) Prospects Despite Current Price Dip
In what van de Poppe describes as "signs for great crypto market," the Consumer Price Index (CPI), a critical measure of inflation, has come in lower than analysts expected – 0.2% in February compared to forecasts of a 0.3% increase. Over the past 12 months, CPI has risen by 2.8%, showing a decrease from the 3% surge observed in January 2025. Historically, lower CPI readings reduce the probability of Federal Reserve rate hikes, which typically creates favorable conditions for Bitcoin and altcoins.
Bitcoin (BTC) Faces Competition from Gold as ETF Flows Shift Direction
Despite the positive CPI outlook, not all analysts share van de Poppe's bullish sentiment. Mike McGlone, the senior commodity expert at Bloomberg Intelligence, believes that Bitcoin is currently losing momentum to gold. In a recent tweet, McGlone pointed out that gold ETFs are beginning to see increased inflows, while Bitcoin ETFs are experiencing massive outflows. This shift in investment flows comes as both Bitcoin and Ethereum, the two largest cryptocurrencies, are experiencing significant declines – with BTC falling below $80,000 earlier this week and Ethereum plunging below $2,000.
Market Correlation May Impact Bitcoin (BTC) Throughout 2025
McGlone's analysis suggests that crypto and stock markets are moving in tandem, with both Bitcoin and U.S. stocks having become overvalued by the end of last year. As a result, they have begun to correct downward. McGlone refers to both crypto and stocks as risk assets and expects this decline to potentially continue throughout 2025. At the time of writing, Bitcoin is trading at $81,086 after logging a 3.78% decline, having lost the $84,110 support level.
The contrasting views between van de Poppe and McGlone highlight the divided sentiment in the cryptocurrency market. While the favorable CPI data provides grounds for optimism regarding potential Fed policies that could benefit digital assets, the current price action and ETF flow trends present more immediate challenges for Bitcoin and the broader crypto market.
Investors are now closely monitoring whether the lower inflation readings will translate into actual monetary policy decisions that could support van de Poppe's prediction of an impending bull market, or if McGlone's correlation theory between crypto and traditional risk assets will continue to apply pressure on prices.
The current Bitcoin price correction, bringing it down from recent all-time highs, represents a critical juncture for the cryptocurrency. While still trading above the psychological $80,000 level, Bitcoin's ability to maintain support above this threshold may prove crucial for short-term market sentiment.
For altcoins, which often experience amplified movements relative to Bitcoin, the forecasted "great bull market" would likely result in even more substantial gains if van de Poppe's analysis proves accurate. However, they remain particularly vulnerable to further downside if McGlone's prediction of continued decline throughout 2025 materializes instead.
As institutional interest in cryptocurrency continues to evolve through ETF products, the shifting flows between Bitcoin and gold ETFs may serve as an important indicator of broader market sentiment and risk appetite among professional investors in the coming months.
Saad Ullah
