Altcoin
Analyst Michaël van de Poppe Sells Bitcoin and Spots Altcoin Opportunities
After favorable US inflation data, Bitcoin rose by 7.54% in 24 hours, exceeding $65,000. Traders are monitoring key factors for a likely rise above $70,000. At this time, the famous cryptographic analyst Michaël van de Poppe announced his decision to sell his Bitcoin holdings, citing various strategic reasons. As Bitcoin approaches a new high or a major sell-off, van de Poppe’s action shows his systematic approach to the volatile cryptocurrency sector.
Strategic shift to Altcoins
The strong dollar influences Van de Poppe’s decision, as do US regulatory pressures and the Federal Reserve’s quantitative tightening, all of which have put pressure on the price of Bitcoin. Despite Bitcoin’s collapse to $60,000, van de Poppe remains optimistic about future trends. He believes that poor macroeconomic data and a potential Fed shift from QT to QE could ultimately benefit Bitcoin.
He also sees the Ethereum ETF approval as a trigger point for the market rotation, making altcoins more attractive. Therefore, plan to reinvest in altcoins to take advantage of their lower valuations and higher ROI potential. He highlights the importance of altcoin trading to increase Bitcoin holdings rather than hold them long-term.
Market dynamics and portfolio allocation
Furthermore, he firmly believes that the underperformance of small- and mid-cap altcoins is due to Ethereum’s stagnant movement over the past three years. However, he sees the potential for a turnaround with the upcoming Ethereum ETF approval. His strategy involves closely monitoring Bitcoin valuations to gauge market strength. He suggests a 30% portfolio allocation to Ethereum and 70% to seven major altcoins such as Near, Chainlink, Polkadot, Avalanche, Cardano, Aptos and Hedera, balancing market capitalization and risk.
He recommends using USD pairs for better liquidity and regularly monitoring your portfolio value in terms of Bitcoin. Gradually selling altcoins as they appreciate against Bitcoin helps lock in profits, with a recommended 20% sale of holdings as BTC’s valuation increases.
Long-term vision and market rotation
Van de Poppe highlights the importance of pivoting through the market cycle, initially focusing on early-cycle performers like Solana and then shifting profits to other altcoins. He aims to double or triple Bitcoin holdings through strategic altcoin investments, achieving substantial portfolio growth even with modest multipliers. He emphasizes the need for consistent profit taking, portfolio rebalancing and an adaptive trading strategy.
High supply and demand constraints
Former Blockstream Chief Strategy Officer Samson Mow reinforces van de Poppe’s strategy by highlighting the consistently high demand for Bitcoin. Mow points out that the US ETFs, MicroStrategy and Tether collectively buy almost 1,900 Bitcoin per day, compared to a daily supply of just 450 Bitcoin after the halving. This significant supply-demand imbalance suggests a bullish outlook for Bitcoin prices.
Van de Poppe’s strategy, in line with these demand dynamics, involves temporarily exiting Bitcoin to take advantage of altcoin opportunities, with the ultimate goal of re-entering Bitcoin in a more favorable position.