Many experts predicted a slowdown in the economy, but recent data shows the opposite: the economy is booming in Q2. This strong growth hasn’t been fully reflected in asset prices yet, according to expert Anthony Pompliano—and others agree. Global liquidity is increasing and this means more money is flowing into financial systems around the world. Historically, when liquidity rises, asset prices, including those in the crypto market, tend to follow an upward path. According to analyst Dan, the market is currently in a waiting period, as investors watch for a clear shift from “tightening” (higher interest rates, less money) to “easing” (lower rates, more money). What This Means For Altcoins Experts are closely watching U.S. interest rates, as the Federal Reserve might soon pause or cut rates after a long period of hikes to control inflation. The analyst said that this is important for the crypto market because lower rates make borrowing cheaper, often leading people to invest more in riskier assets like Bitcoin, Ethereum, and altcoins. Related: Ethereum Outshines Bitcoin and Solana in 24-Hour Gains Amid Volume Surge Looking back, big moves in crypto have often followed policy shifts like these — in 2012-2013, in March 2020 during the pandemic, and in late 2019 when altcoins quietly began recovering after a long slump. Altcoin Market Cap Shows Bullish Signs; Technicals Hint at Reversal The altcoin market cap chart is showing a long-running bullish divergence. While prices have made lower lows, the RSI has been making higher lows, which is often a positive sign. Source: TradingView A similar setup happened in June 2023, leading to a breakout. The MACD, another key indicator, is also at very low levels and trying to flip bullish, though there’s still a tough battle happening between bulls and bears in the short term. Related: This Analyst Has Called a Bitcoin Dip to $92,000; And He’s Got Proof Ethereum’s Bullish Case Historically, when Ethereum leads a breakout, altcoins tend to follow closely behind. Ethereum is at a key technical level on its monthly chart, trading between the 20-month and 50-month moving averages — a setup last seen in September 2023, right before a major breakout. Source: TradingView The RSI is also in oversold territory and starting to turn upward, hinting at strong upside potential. Back in 2023, Ethereum rallied over 140% from $1,600, and a similar move now could push it beyond $6,000 if momentum builds. Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.