Altcoins
Top 5 Altcoins Amid Market Crash
In a recent videoanalyst Michaël van de Poppe delves into 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 decline in the cryptocurrency market, with altcoins like Arbitrum and Optimism hitting unprecedented lows and Bitcoin falling to around $54,000, which hasn’t been seen since October last year. Despite declining macroeconomic factors, such as a weakening US dollar and falling government bond yields, Bitcoin and altcoins are still struggling.
He attributes the decline to Germany’s Bitcoin sell-off, which reduced its holdings from $3.2 billion to $2.3 billion, and Mt. Gox’s repayment of 30-40% of its Bitcoin, which began on July 5 after a decade of insolvency, causing anxiety in the market.
Van de Poppe’s Altcoin Strategy
In these difficult times, Van de Poppe’s game plan for the next few 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 downturns, and expects an event-driven recovery like the Ethereum ETF. He advises keeping an eye on Bitcoin’s dominance and sees the current period as a buying opportunity. Despite recent corrections, the analyst believes that downturns often signal prime entry points for altcoin investments.
His top altcoin picks!
Referee (ARB)
Referee 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 turmoil.
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 how altcoins reached unprecedented low prices during the crash.
Ethereum (ETH)
The second largest cryptocurrency by market cap, Ethereal is a significant part of his portfolio. Despite a sharp decline in USD valuation, he points out that its value in terms of Bitcoin (BTC pair) is relatively stable, reflecting a slight gain.
Chain (LINK)
Mesh sweater is a decentralized oracle network that provides reliable, tamper-proof data for smart contracts on any blockchain. Van de Poppe talks about Chainlink again at its cycle low, down 15% against Bitcoin in its holdings.
Space-time 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 has dropped 50% from its purchase price, indicating its high volatility but also the potential for high returns.
Overall, he says, now is the best time to invest because historical trends indicate that altcoins perform best in the third and fourth quarters.
Read also: Bitcoin, Ethereum, XRP Price Prediction: Has the Bullish Rally Resumed?