Altcoins
Analyst Reveals Why He Switched to Altcoins
A leading figure in the cryptocurrency industry has revealed that he has sold all of his Bitcoin (BTC) holdings in favor of altcoins. In a post on X, the market expert said he still has faith in the flagship cryptocurrency and explained what he did and why.
The expert takes a risk to get more Bitcoin
On Thursday, renowned crypto analyst Michaël van de Poppe announced to his X followers that he had sold all of his Bitcoin holdings. He prefaced his explanation by stating that he had not lost faith in BTC.
The expert explained that he does not expect the largest cryptocurrency by market capitalization to be “overtaken for this cycle.” Furthermore, he clarified that he has not become a “total believer in gold”.
Van de Poppe’s announcement. Source: Michael van de Poppe on X
Van de Poppe’s goal is to buy back more Bitcoin over the course of the year as “It’s a bull cycle; we cannot deny it.” However, he explains that the simplicity of the four-year cycle and the impact of the “Halving” events will reduce over time as Bitcoin becomes a mature asset worldwide and institutions prioritize “risk appetite in their portfolios”.
According to the analyst, “It’s all about risk” and institutions will reduce risk when liquidity dries up. As a result, this cycle may be the last “easy” cycle to make large profits through altcoins.
He said he has 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 the path riskier:
“I know the facts and I know that to get a great return, you will have to gain more knowledge and have the courage to take the risk against all odds and feelings. That’s where I like it best and where I’ve had periods where things have gone wrong. I can’t deny it.
Altcoin ready for great returns
Further explaining why he chose this path to recover his Bitcoin, the analyst said that “altcoins have been squeezed unreasonably hard” 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 a spot Exchange-Traded Fund (ETH) being created for Ethereum (ETH). approved along with the Securities and Exchange Commission (SEC) crackdown on ETH. The clarification on the status of the second largest cryptocurrency could “make a significant U-turn.”
Secondly, the results of the US House of Representatives vote on the FIT21 bill could provide a clearer regulatory framework for the cryptocurrency industry in the United States. Finally, the outcome of the XRP case, which in his opinion will result in the asset not being classified as a security, could also positively influence the market.
Van de Poppe said the upside to his bet could not be denied. Nonetheless, he acknowledges that the downside is relatively huge. The expert explained that he has currently lost 20% of his total investment in two weeks, claiming that he will be fine with the possibility of losing 50-80% of his investment.
For the analyst, the chances of achieving a 300-900% return in the next 6-12 months exceed expectations. risks. With the potential to earn between 900% and 4500% in the next year or two, van de Poppe “happily allocates entirely to altcoins.” He closed his post by optimistically stating, “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