The cryptocurrency market has been experiencing a downturn, with altcoins, in particular, facing significant challenges. Despite Bitcoin's stability, altcoins have been unable to replicate its performance, leading to a decline in their value. Several factors contribute to this slump, including the uncertainty surrounding Ethereum exchange-traded funds (ETFs), the impact of U.S. economic data and inflation on interest rates, and Bitcoin's dominance in the market.

Ethereum, a leader in the altcoin market, has experienced a 10% decline since May, causing a ripple effect on other altcoins. The delay in listing Ethereum ETFs, despite their approval, has created uncertainty, affecting investor confidence. The launch of spot ETH ETFs, expected around July 2, may bring a much-needed boost to altcoins. If ETH is classified as a commodity, it could have a positive impact on the entire altcoin market.

The U.S. economic data and persistent inflation have led to high interest rates, making it challenging for altcoins to thrive. Historically, altcoins perform well during periods of quantitative easing and low interest rates, when liquidity in the global economy increases. The current economic conditions are unfavorable for altcoins, contributing to their decline.

Bitcoin's dominance is another significant factor affecting altcoins. With a market share of 55.4%, Bitcoin's influence is substantial. However, experts believe that this dominance is temporary, and the rotation of funds will soon favor altcoins. The launch of Ethereum ETFs is expected to trigger this rotation, making altcoins more attractive to investors.

Despite the current challenges, experts predict a rebound in the altcoin market. Historical patterns suggest that altcoins tend to peak around 546 days post-halving, and if this cycle repeats, now may be an opportune time to invest in altcoins before they experience a significant surge. However, it is crucial to choose the right altcoins, as not all will yield substantial returns.

In conclusion, the current slump in the altcoin market is attributed to various factors, including Ethereum's decline, U.S. economic data, and Bitcoin's dominance. However, experts anticipate a rebound, driven by the launch of Ethereum ETFs and the rotation of funds. Investors seeking to capitalize on the potential growth of altcoins must be cautious and selective in their investments, as not all altcoins will experience a significant surge.