Altcoins
Top 5 Best Altcoins in the Midst of the Stock Market Crash
In a recent videoAnalyst Michaël van de Poppe looks at the current cryptocurrency crash and why his altcoin strategy failed. All this and more! Read on.
Understanding the Current Cryptocurrency Crash
Van de Poppe begins by noting the significant slowdown in the cryptocurrency market, with altcoins like Arbitrum and Optimism reaching unprecedented levels and Bitcoin Bitcoin and altcoins have fallen to around $54,000, a level not seen since October last year. Despite the decline in macroeconomic factors, such as the weakening US dollar and falling government bond yields, bitcoin and altcoins are still struggling.
He attributes the slowdown to Germany’s Bitcoin sales, which reduced its holdings from $3.2 billion to $2.3 billion, and Mt. Gox’s repayment of 30% to 40% of its Bitcoins, which began on July 5 after a decade of insolvency, causing market anxiety.
Van de Poppe’s Altcoin Strategy
In these trying times, Van de Poppe’s game plan for the coming months is to stick to his altcoin strategy despite the current market downturn. He plans to continue holding altcoins to accumulate more Bitcoin, focusing on their Bitcoin valuations rather than USD values.
He believes the market is in a capitulation phase, similar to past declines, and expects a recovery driven by events like the Ethereum ETF. He advises monitoring Bitcoin dominance and sees the current period as a buying opportunity. Despite recent corrections, the analyst believes that declines often signal prime entry points for altcoin investing.
His Top Altcoin Picks!
Arbitration (ARB)
Arbitration Arbitrum is a Layer 2 scaling solution for Ethereum, designed to improve the speed and reduce the cost of transactions on the network. Van de Poppe notes that Arbitrum is hitting cycle lows amid the broader market downturn.
Optimism (OP)
Like Arbitrum, Optimism is another layer 2 scaling solution for Ethereum. It aims to improve Ethereum’s throughput and efficiency. Van de Poppe includes Optimism as an example of altcoins reaching unprecedented low prices during the crash.
Ethereum (ETH)
The second largest cryptocurrency by market capitalization, Ethereum represents a significant portion of his portfolio. Despite a sharp drop in USD valuation, he points out that its value in Bitcoin terms (BTC pair) is relatively stable, reflecting a slight gain.
Chain link (LINK)
Chain link is a decentralized oracle network that provides trusted and tamper-proof data for smart contracts on any blockchain. Van de Poppe explains that Chainlink is once again at a cycle low, down 15% against Bitcoin in its holdings.
Wormhole (WORM)
Wormhole is a cross-chain communication protocol that allows different blockchains to interact. It is one of the newest coins in Van de Poppe’s portfolio. He mentions that this coin is down 50% from its purchase price, indicating its high volatility but also its high return potential.
Overall, he says, this is the best time to invest because historical trends indicate that altcoins perform best in the third and fourth quarters.
Read also: Bitcoin, Ethereum, and XRP Price Prediction: Has the Bullish Rally Resume?