Author: Pablo Dávila S.
Date: November 19, 2024
The cryptocurrency market is experiencing a historic moment with the bull run
of 2024, driven by key events such as the Bitcoin halving, the approval
of spot ETFs, and the elections in the United States, won by
Donald Trump, a pro-crypto leader. But what does a bull run really mean and
how can you maximize your opportunities in this cycle? #BecomeCreator 👇🏻👇🏻
1/5 What is a bull run?
A bull run is a prolonged period during which the prices of financial assets, such as cryptocurrencies, experience significant increases due to macroeconomic, sentiment, or technological factors. Since the creation of Bitcoin in 2009, we have experienced several remarkable bull cycles, such as:
2013: Bitcoin reached $1,000 after gaining initial adoption.
2017: The market touched $20,000 driven by ICOs and the massive arrival of
new investors.
2021: Bitcoin broke $69,000 thanks to the rise of DeFi, NFT, and the adoption
institutional.
2/5 The bull run of 2024 has been driven by three main factors:
1. Bitcoin Halving (April): Reduced the issuance of new coins,
increasing scarcity.
2. Approved spot ETFs (January): The entry of financial products like the
ETF attracted massive investments from institutions.
3. Elections in the U.S.: Donald Trump (November), a president with a favorable stance towards cryptocurrencies, generated confidence in the markets
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3/5 What to do during a bull run?
The bull run can be a stage of great opportunities, but also of high
volatility. These are the key strategies I am implementing to navigate
this cycle:
1. Convert altcoins to Bitcoin:
In this bull run, my main strategy will be to convert all my altcoins to Bitcoin.
The reason is that Bitcoin, being the leading currency, has lower volatility and more long-term stability, especially as we approach the next halving. Historically, Bitcoin has led the rises after each cycle, and having direct exposure can better prepare my portfolio for the next bull cycle.
2. Take a strategic DeFi loan:
I will take a loan equivalent to 30% of the value of my position in Bitcoin.
This loan will give me liquidity without needing to sell my Bitcoin,
allowing me to seize investment opportunities both within and outside the crypto market during the new cycle. This includes:
Buy projects in their early phases (emerging altcoins).
Investing in traditional markets or uncorrelated assets.
3. Have a take profit plan:
Set price levels to sell your assets partially or fully. For
example, you can sell Bitcoin in increments as it rises, leaving a portion for possible higher peaks.
4. Protect your profits with stablecoins:
Converting part of the profits into stablecoins can help protect your capital against sudden corrections.
5. Avoid FOMO (Fear of Missing Out):
Do not chase price peaks without analyzing. It is preferable to enter during corrections or in moments of market consolidation.
4/5 The possibility of an altseason
At the end of a bull run, altcoins usually take off, as investors seek to diversify their Bitcoin profits into smaller assets.
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5/5 Long-term mindset:
Although bull runs can generate quick profits, it is also important
to consider cryptocurrencies as a long-term investment.
Let's see....
The cryptocurrency market is, without a doubt, the wildest and most challenging for me,
but it also offers unique opportunities for those who have patience,
discipline and knowledge. It's not just about investing, but understanding the environment,
manage risks and stay focused on your long-term goals.
If you learn, prepare, and act intelligently, you will be ready to turn the
challenges into opportunities.
Author: Pablo Dávila S.
Date: November 19, 2024