Crypto trader and blogger Michael van de Poppe (718 thousand subscribers in X) sold all his BTC and bought altcoins. The reason is that he is waiting for liquidity to flow into them.
At the same time, Poppe admits that there are risks in his strategy and he has already lost about 20% of his portfolio in two weeks, and may lose another 50-80%, but this “quite suits him.”
We have selected what we think are the most interesting and important points from his huge (it’s really huge) post. We recommend reading the full version, there are interesting arguments there. Partially shortened version:
“...I have not lost faith in Bitcoin and do not believe that its growth in this cycle has ended. I haven't become a full gold convert... Technically speaking, I sold my Bitcoin as I plan to buy it back later this year. It's a bullish cycle, there's no denying it...
... this cycle is relatively the last easy cycle for making significant money through altcoins. How to make big profits in the Bitcoin cycle? There are several ways.
First …
... Fourth - Trading altcoins within the Web 3.0 ecosystem to get more Bitcoin. The riskiest path, as you can easily lose BTC by making a mistake with market timing or investments.
I chose the last option...
... The Web 2.0 space needs to be tokenized, and we'll see a lot of tokenization, and the heads of the largest funds and asset managers are saying that everything will be tokenized at some point.
It is my choice…
… The approval of Bitcoin Spot ETFs in recent months has led to a significant increase in liquidity in the ecosystem. This is great... However, cryptocurrency traders exchanged their altcoins for Bitcoin during this period. How do I know this? This can be seen in the charts... On the other hand, if you look at previous cycles, you would assume that the rotation from Bitcoin to altcoins (around the halving) occurs before the halving. This time is different as the markets continued to show strength...
...the chances of Ethereum ETF being approved are close to zero, but it's worth waking up to. Why? Usually these are events when you need to “sell rumors, buy news.” Everyone expects the worst. If the worst happens, the news will come out and the situation can only get better. If the news is even slightly better than expected, the markets will move sharply... Invesco's bid was delayed, not rejected. The SEC should provide clarity on this aspect and will likely look into the security issue. The court will decide...
...I believe altcoins have been unnecessarily suppressed. There's no denying the growth potential. DePIN and RWA will become significant, more and more traditional companies are moving into the Web 3.0 ecosystem. Time to invest in this if you want to make a big return.
So, what's the downside to this bet? It is relatively large. At the time of publication, I had already lost about 20% in 1-2 weeks on my total investment. It's part of the game. I can lose 50-80%, and I'm ok with that because I'll find ways to continue making money anyway.
On the other hand, I can get a return of 300 to 900% in the next 6-12 months in Bitcoin equivalent. If Bitcoin stabilizes during this period, I could make another 300-600% return just by holding Bitcoin, which means 900-4500% is the potential return range for the next 12-24 months in this super cycle.
I agree to this bet. I am happy to be fully invested in altcoins and gladly traded my Bitcoins for them.
The bull cycle will be great.”
Let's remember that Poppe previously said that #BTC's dominance has probably reached its peak. And that the capitalization of altcoins may reach historical highs in the next 3-5 months.
