Key facts: A month ago, the analyst had rotated the capital of his portfolio towards altcoins. Van de Poppe believes that the launch of Ethereum ETFs will change the landscape in his favor. Despite years of experience trading cryptocurrencies, renowned trader and analyst Michaël van de Poppe currently has his investment portfolio in losses. “I bet everything on altcoins a month ago and now they have collapsed,” he revealed, exposing his pitiful situation. Given the imminent approval of Ethereum exchange-traded funds (ETFs) in the United States a month ago, The analyst expected that altcoins would gain momentum (cryptocurrencies that are not bitcoin). Therefore, he decided to rotate the capital of his portfolio towards this market niche. “It was one of the hardest decisions I've made in recent years regarding my cryptocurrency investments, but I felt like it was one of the easiest,” he said. It was a moment that in his eyes was a risky opportunity not to be missed. But, he warns that altcoins began to bleed massively after his play. Although the approval of the ETFs led the market to rise momentarily, economic data, reported by BitcoinDynamic, made it retreat later. “I didn't realize that the markets were capable of correcting a little more, so I am currently with my investments down,” he said. “Probably, like me, more people are with their wallets very low,” he said, feeling empathy and compassion. However, he assured that he is not completely worried, since still maintains bullish expectations and it is not the first time this has happened to him.
Michaël van de Poppe spoke on X and his YouTube channel about his investments. Source: Crypto Michaël.
“I timed it too early”
It is nothing new for van de Poppe to have his investment portfolio full of losing cryptocurrencies. “In the previous cycle, I also went all-in on altcoins at an early stage and timed it too early,” he expressed. In any case, although it took a long time to wait, remember that then the result was a huge return to the upside. The specialist announced that during that cycle he exposed his investment capital in verasity (VRA), polygon (MATIC) and fantom (FTM), altcoins that declined by more than 50% in the following months. However, once this correction passed, he points out that they multiplied his price 200 times, which allowed him to take profits. Due to the low capitalization of altcoins compared to bitcoin (BTC), they have greater volatility with lower trading volume. In this way, they function as assets that can give high profits as well as losses. That is why Your trading is high risk. Additionally, new coins tend to become popular in each bitcoin bull market, so many that have seen significant gains in the past do not experience anything like that again. For example, the three altcoins that van de Poppe invested in last cycle are now trading between 80% and 96% below their all-time highs recorded in 2021. Meanwhile, bitcoin set a new price record three months ago and has since then The market is consolidating the area below. Currently, it is trading 10% below that figure, which was 73,700 dollars (USD). When bitcoin surpassed its high from the previous bull cycle in the previous bull cycle, that was when altcoins began to wake up, as happened this year. Therefore, an upward breakout of its current consolidation period could reactivate this phenomenon.
Eyes Now on Ethereum ETF Launch
Van de Poppe indicates that the market expectation is that there will be a big upside performance in the second half of 2024. “The sentiment is turning into a graveyard mentality, while the reversal is on the horizon,” she mentioned. The reason is that the launch of Ethereum ETFs is planned for this period. “The Ethereum ETF is a great milestone for the entire industry,” he said because it allows the entry of large investors looking to diversify. “I hope that the real price is the trigger for the bullish momentum,” he said. The reason is, he explained, that ether is classified (ETH) as a commodity instead of a security. Unlike the common strategy of “buying the rumor and selling the news,” the trader considers that the opposite is currently happening: “selling the rumor and buying the news.” When the launch occurs, warn that the money in bitcoin can go to Ethereum, so its price will benefit. Currently, ETH is trading 30% below its maximum price of USD 4,900 reached during the last bullish cycle in 2021. With this scenario, van de Poppe warned that, for now, it doesn't change its positioning at all. “I am confident in this strategy and happy to be positioned in relatively new assets,” she said. “Maybe I will be losing a lot; maybe not,” he added. Time will tell.