Analyst Declares Altcoin-Buying Season, Cites Undervaluation

Analyst Declares Altcoin-Buying Season, Cites Undervaluation
  • Van de Poppe identifies as a portfolio maximalist, seeking diverse investment opportunities, not just Bitcoin.
  • He believes currently altcoins are undervalued, advocating for purchases before a rally, aiming for strategic entry points.
  • He recommends reallocating altcoin returns to Bitcoin, emphasising portfolio rebalancing and informed trading based on valuation methods.

Analyst Michaël van de Poppe is not your typical Bitcoin maximalist—he actually claims for himself to be a portfolio maximalist—which is a fancy term but basically means he is not tied to a single asset class or investment strategy but instead seeks out the best opportunities across the entire investment landscape.

Related: “Rich Dad Poor Dad” Author Robert Kiyosaki Says Buy Bitcoin Not Stocks

And so, he notes that right now a lot of altcoins are severely undervalued. And you do not want to start buying these when they are starting to rally—he believes now could be the right time to buy.

Some Altcoins are down 30-40% from their recent peaks. Yes, that’s when I want to scale into my positions, despite the sentiment switching around. I don’t buy green candles; I buy them during these periods.

Michaël van de Poppe

Van de Poppe recommends moving away from the pursuit of extraordinarily high returns, often termed as “100x.” Instead, he advises on timing the markets through prudent allocation of funds to altcoins in a measured manner.

The returns generated from these altcoin investments are then reallocated back to Bitcoin. This approach aims to build value steadily over time by leveraging the volatility and growth potential of altcoins, while ultimately consolidating gains in Bitcoin—perceived as a more stable and foundational asset within the cryptocurrency market.

Why Valuation Matters

In one of his recent videos van de Poppe explains the significance of valuing altcoins, emphasising the need for portfolio rebalancing to maximise returns amid trading risks.

You need to understand that there are risks involved by trading altcoins and you need to make sure that you’re rebalancing your portfolio in the right manner throughout the cycle to maximize your returns.

Michaël van de Poppe

The analyst outlines multiple valuation methods for altcoins, such as direct fiat valuation, and comparisons against major cryptocurrencies like Bitcoin and Ethereum, using Chainlink as an example to illustrate these concepts. Van de Poppe highlights the importance of understanding these valuations to make informed trading decisions throughout market cycles.

This is super important because through these data points you will be able to derive all the important information you need to start trading altcoins through the entire cycle.

Michaël van de Poppe

On Strategic Trading Goals

He also discusses strategic goals for trading, whether aiming for fiat gains or increasing holdings in Bitcoin or Ethereum. 

Related: Iceland to Slow Down Bitcoin Mining as Electricity Demand Surpasses Household Use

He says it should be clear for anyone trading to know exactly what it is they are trying to achieve. So, it is very important to define one’s base asset and trading objectives.

What is your base asset? If your base asset evaluation is Bitcoin then it might also mean that you don’t really care about fluctuations in your USDT evaluations, you just want to get more Bitcoin.

Michaël van de Poppe

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