Last update: 08.07.2024 – 11:10
In a recent video, analyst Michaël van de Poppe took a deep dive into the ongoing crypto meltdown and why his altcoin strategy failed. Van de Poppe began his analysis by noting the significant decline in the crypto market. This has caused great disappointment and anxiety among crypto investors. In particular, altcoins, which many investors had high hopes for, have failed to perform as expected and have suffered significant losses in value.
Van de Poppe emphasizes that while macroeconomic factors such as the weakening US dollar and falling government bond yields are generally expected to positively affect cryptocurrency markets, Bitcoin and altcoins are still struggling in the current situation. Normally, such macroeconomic indicators cause investors to turn to safe haven assets, while the expected recovery in the crypto market has not occurred. This shows that the cryptocurrency market is facing its own internal dynamics and problems.
The analyst cites Germany’s massive Bitcoin sales as the main reasons for this decline. Germany made a significant sale, reducing its Bitcoin holdings from $3.2 billion to $2.3 billion. These sales caused an oversupply in the market and, therefore, a drop in prices. The fact that Bitcoin faced such a massive sale also put pressure on other crypto assets in the market.
In addition, Mt. Gox’s 30-40% refund of its Bitcoins, which started on July 5 after a decade of bankruptcy and caused concern in the market, also accelerated the market decline. Mt. Gox was hacked years ago and lost a large amount of Bitcoin. After a long legal process, the victims were paid back, creating a large supply of Bitcoin in the market. This led to further price declines.
Van de Poppe’s Strategy
In difficult times, Van de Poppe’s game plan for the coming months involves sticking to his altcoin strategy despite the current market downturn. He plans to continue holding altcoins to accumulate more Bitcoin and focus on the value of altcoins against Bitcoin rather than their USD value.
He believes the market is in a capitulation phase similar to past declines and expects a recovery led by events like the Ethereum ETF. He recommends following Bitcoin dominance and sees the current period as a buying opportunity. Despite the recent corrections, the analyst believes that declines often signal major entry points for altcoin investment.
Analyst’s Top Altcoin Picks
Arbitrum (ARB): Van de Poppe notes that Arbitrum is hitting cycle lows amid a broader market downturn.
Optimism (OP): Van de Poppe points to Optimism as an example of altcoins that reached unprecedented low prices during the crash.
Ethereum (ETH): The second-largest cryptocurrency by market cap, Ethereum makes up a significant portion of the analyst’s portfolio. He notes that despite the significant decline in its USD valuation, its value in terms of Bitcoin has remained relatively stable, reflecting a slight increase.
Chainlink (LINK): Van de Poppe thinks Chainlink is back in a down cycle, with the pair down 15% against his Bitcoin holding.
Wormhole (WORM): This altcoin is one of the newest coins in Van de Poppe’s portfolio. He notes that this coin is 50% lower than its purchase price, indicating high volatility but also high yield potential.
Overall, he says this is the best time to invest because historical trends show that altcoins perform best in the third and fourth quarters.
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