Altcoins
Analyst Reveals Why He Switched to Altcoins
A prominent figure in the crypto space has revealed that he sold all his Bitcoin (BTC) holdings in favor of Altcoins. In an X article, the market expert claimed to still have confidence in the flagship cryptocurrency and explained what he did and why.
Expert takes a risk to get more Bitcoin
On Thursday, famous crypto analyst Michaël van de Poppe announced to his X subscribers that he had sold all his Bitcoin holdings. He began his explanation by stating that he had not lost confidence in BTC.
The expert explained that he does not expect the largest cryptocurrency by market capitalization to be “at the top of this cycle.” Additionally, he clarified that he has not become a “total believer in gold.”
Announcement by Van de Poppe. Source: Michael van de Poppe on X
Van de Poppe’s goal is to buy back more Bitcoin later in the year because “it’s a bullish cycle; we cannot deny it. However, he explains that the simplicity of the four-year cycle and the impact of “halved” events will diminish over time as Bitcoin is becoming a mature asset globally and institutions are prioritizing “risk appetite in their portfolios.”
According to the analyst, “it’s all about risk” and institutions will reduce risks when liquidity dries up. As a result, this cycle could be the last “easy” cycle to make big profits from altcoins.
He claimed he had to take a risk as a 31-year-old entrepreneur who has survived several bull and bear markets since 2017. To get more Bitcoin, van de Poppe decided to trade Altcoins within the Web 3.0 ecosystem, which he considers to be the riskiest path:
“I know the tides and I know that getting a big return will require gaining more knowledge and daring to take risks against all odds and odds. This is where I love the most and where I have had periods where things have gone wrong. I can’t deny it.
Altcoins poised for big returns
Further explaining why he chose this path to recover his Bitcoin, the analyst said that “altcoins have been crushed unreasonably” during this cycle. For this reason, van de Poppe is considering several events that could make or break his bet on altcoins.
First, he listed the slim chances of an Ethereum spot (ETH) exchange-traded fund (ETH) being approved alongside the Securities and Exchange Commission’s (SEC) crackdown on ETH. Clarification on the status of the second largest cryptocurrency could “make a significant turnaround.”
Second, the results of the U.S. House of Representatives’ vote on the FIT21 bill could provide a clearer regulatory framework for the crypto industry in the United States. Finally, the outcome of the XRP lawsuit, which he believes will result in the asset not being classified as a security, could also have a positive impact on the market.
Van de Poppe said the benefits of his bet cannot be denied. However, he recognizes that the disadvantages are relatively enormous. The expert explained that he has currently lost 20% of his overall investment in two weeks, saying that he will come out of this with the possibility of losing 50-80% of his investment.
For the analyst, the chances of achieving a return of 300 to 900% in the next 6 to 12 months exceed the risks. With the possibility of gaining between 900% and 4,500% over the next two years, van de Poppe “will happily devote himself entirely to altcoins.” He closed his message with optimism by saying: “The bull cycle will be glorious. »
Bitcoin is trading at $66,340 in the monthly chart. Source: BTCUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com