“I bet It All On Altcoins… And They Crashed”
Trader Michaël van de Poppe reflects on the strategy he has chosen in this cryptocurrency bull cycle.
Michaël van de Poppe’s investment portfolio is currently at a loss. “I bet everything on altcoins a month ago, and now they have plummeted,” he revealed, exposing his pitiful situation.
With the imminent approval of Ethereum exchange-traded funds (ETFs) in the United States a month ago, the analyst expected altcoins (cryptocurrencies other than bitcoin) to gain momentum. As a result, he decided to rotate his portfolio capital into this niche market.
“It was one of the hardest decisions I’ve made in recent years regarding my cryptocurrency investments, but I felt it was one of the easiest,” he commented. It was a moment he saw as a risky opportunity not to be missed. But, he warns, altcoins began to bleed massively after his move.
While the ETF approval briefly pushed the market higher, economic data reported by a media outlet later pulled it back. “I didn’t realize the markets were capable of further corrections, which is why I’m currently down with my investments,” he said.
“Probably more people like me are way down with their portfolios,” he said, feeling empathy and sympathy. However, he assured that he is not completely worried as he still has bullish expectations and this is not the first time this has happened to him.
“I Got into It too Early.”
It’s nothing new for van de Poppe to have a cryptocurrency-filled investment portfolio at a loss. “In the previous cycle, I also bet everything on altcoins early on and timed it too early,” he expressed. Be that as it may, even though it took a while, he recalls that the result was a great return to the upside.
The specialist said that during this cycle, he exposed his investment capital in verasity (VRA), polygon (MATIC) and fantom (FTM), altcoins that fell by more than 50% in the following months. However, once this correction was over, he notes that they multiplied their price 200 times, allowing him to take profits.
Due to the low capitalization of altcoins compared to bitcoin (BTC), they have higher volatility with lower trading volumes. Thus, they function as assets that can generate high profits as well as losses. Therefore, their trading is high risk.
In addition, new coins tend to become popular in every bitcoin bull market, so many coins that have seen significant rallies in the past never see them again. For example, the three altcoins van de Poppe invested in during the last cycle are now trading between 80% and 96% below their all-time highs set in 2021.
Meanwhile, bitcoin set a new price record three months ago and has been consolidating below it ever since. It is currently trading 10% below that level, which was $73,700 (USD).
When bitcoin broke above its previous cycle high in the previous bull cycle, that is when altcoins started to wake up, as happened this year. Therefore, a breakout to the upside from the current consolidation period could revive this phenomenon.
Given this scenario, van de Poppe cautioned that he is not changing his positioning at all for the time being. “I am confident in this strategy and I am happy to be positioned in relatively new assets,” he said. “Maybe I will lose a lot, maybe not,” he added. Time will tell.
By Audy Castaneda