Shortly after declaring his “opportunity cost” strategy of selling all his Bitcoin (BTC) holdings, prominent crypto expert Michael van de Poppe also followed up on his announcement and actually sold all of his Bitcoin (BTC). He said he had sold all his coins and explained why. inference.
Coincidentally, Van de Poppe said that recent actions do not mean he has lost faith in the virgin crypto asset, nor did he expect it to reach all-time highs this cycle. He said that he did not say that he had become a complete believer in the religion. According to the description in a long X post from May 16th.
End goal: more bitcoins
Quite the opposite. The professional crypto trader said he did this because he was “aiming to get more Bitcoin back later this year” and thought it was a “bullish cycle”, reiterating his earlier doubts about traditional four-year cycles. Ta. Mainstream decentralized finance (DeFi) assets.
“Over the past week, we have seen pension funds, insurance companies, and the largest hedge funds in the US allocate money to spot Bitcoin ETFs. CME Group has announced the launch of a futures ETF, and sooner or later Bitcoin Options-based trading will become possible, making the coin a mature asset in the world.”
Accordingly, he believes that “financial institutions are placing greater emphasis on portfolio risk appetite in conjunction with macroeconomic conditions,” which will gradually reduce the impact of four-year cycle simplicity and halving. , they will be risk-averse as liquidity dries up. strong dollar.
These factors lead Van de Poppe to argue that in some ways “this cycle is relatively the last easy cycle to make big money through altcoins,” but he claims to have chosen the riskiest cycle: “trading altcoins within the Web 3.0 ecosystem.” Get more Bitcoin. ” If you get the timing wrong, you could lose your BTC.
Why now?
Regarding the timing, he explained that the world is “in an era where we're trying to get as much Bitcoin and gold as possible.” hard assets.salable assets, because [quantitative easing (QE)] “Sooner or later, inflation sets in, and inflation takes away purchasing power, living standards, and enjoyment of life,” and therefore “Bitcoin is the result.”
Furthermore, “If we are looking at previous cycles, I would suggest that a rotation from Bitcoin to altcoins (around the halving) will occur before the halving. As the market continues to show strength, , this time it was a completely different situation.”
On top of that, Van de Poppe said that the downward pressure on altcoins is “unreasonably severe” and that “the upward trend is undeniable,” adding, “DePIN and RWA are going to get bigger and bigger.” said. Traditional enterprises are moving to his Web 3.0 ecosystem. ”The reason is as follows.
“If you want to reap big benefits, now is the time to put all your effort into this.”
Advantages and disadvantages
As he pointed out, this strategy could deliver “a 300-900% return in Bitcoin value over the next 6-12 months,” or “an additional 300-600% if Bitcoin remains stable through that period (…)” may result in ) 900-4500% is a good indication of the potential returns for the next 12-24 months in this supercycle. ”
Meanwhile, Van de Poppe said the downside of his bet could be “relatively large” as “the total investment has already fallen by about 20% in a week or two”. He emphasized. He will take a 50 to 80 percent loss, but that's okay, he said, “because I'm going to find a way to continue making ends meet.”
Bitcoin price analysis
Meanwhile, Bitcoin is currently trading at a price of $66,110, with a modest rise of 0.26% in the past 24 hours, a significant rise of 4.80% in the past 7 days, and a cumulative rise of 4.37% on the monthly chart. ing. , based on data as of May 17th.
All things considered, Michael van de Poppe's strategy may make sense, as he is an experienced trader who is fully aware of all the risks and downsides. It's important to do your own research before trying to copy his methods, especially as trends in this sector can come into play. It suddenly changes.
Disclaimer: Content on this site should not be considered investment advice. Investments are speculative. When you invest, your capital is at risk.
