It’s no secret – change happens quickly in the world of cryptocurrencies.
Bitcoin soared 7.54% in just 24 hours, confidently breaching the $65,000 milestone on the back of encouraging US inflation data. However, amidst this flurry of activity, prominent crypto analyst Michael van de Poppe made an important move that caught the attention of traders and enthusiasts alike.
See below for his views.
Van de Poppe's strategic withdrawal
With Bitcoin teetering on the brink of new highs or a possible fall, Van de Poppe chose to unload his Bitcoin holdings, citing a variety of strategic reasons.
A strong dollar is influencing Van de Poppe's decision, while regulatory pressure in the US and quantitative tightening by the Federal Reserve are also weighing on bitcoin prices. Despite Bitcoin falling to $60,000, Van de Poppe remains optimistic about his future. He believes that poor macroeconomic data and a possible Fed shift from QT to QE could ultimately benefit Bitcoin.
Will change come?
He also believes that the approval of the Ethereum ETF will trigger market rotation, making altcoins more attractive. Therefore, he plans to reinvest in altcoins to take advantage of their lower valuations and higher ROI potential. He emphasizes the importance of trading altcoins to increase your Bitcoin holdings, rather than holding Bitcoin for the long term.
Balancing risk and reward
Van de Poppe strongly believes that the poor performance of small and medium-sized altcoins is due to Ethereum’s stagnation over the past three years. However, he sees a potential turnaround with the upcoming approval of an Ethereum ETF. His strategy involves closely monitoring Bitcoin's valuation to gauge market strength. He suggests a portfolio allocation of 30% to Ethereum and 70% to the top seven altcoins, including Near, Chainlink, Polkadot, Avalanche, Cardano, Aptos, and Hedera, to balance market capitalization and risk. .
He advises using USD pairs to increase liquidity and regularly tracking the value of your portfolio in Bitcoin terms. You can secure profits by gradually selling altcoins as their value increases relative to Bitcoin, and it is recommended to sell 20% of your holdings as Bitcoin's valuation increases.
Timing is everything!
Van de Poppe emphasizes the importance of rotating through market cycles, initially focusing on early cycle performers like Solana and then moving profits to other altcoins. He aims to increase his Bitcoin holdings from 2x to 3x through strategic altcoin investments, achieving significant portfolio growth even at low multiples.
He emphasizes the need for consistent profit taking, portfolio rebalancing, and adaptive trading strategies.
The industry has spoken out!
Samson Mow, former chief strategy officer at Blockstream, reinforces Van de Poppe's strategy by highlighting the continued high demand for Bitcoin. Moh points out that the US ETF, MicroStrategy, and Tether together buy nearly 1,900 Bitcoin each day, while the daily supply after the halving is only 450 Bitcoin. This significant supply and demand imbalance suggests a bullish outlook for Bitcoin price.
Van de Poppe's strategy in line with these demand dynamics includes temporarily exiting Bitcoin to take advantage of altcoin opportunities, and ultimately re-entering Bitcoin in a more favorable position. There is something to aim for.
Are you thinking of following suit? What altcoins are you looking at?
Also check: QCP predicts Bitcoin to surge to $74,000 amid strong institutional support
