MN Trading Founder Shifts from Bitcoin to Altcoins

Analyst and MN Trading founder Michaël van de Poppe explained his decision to sell all his accumulated Bitcoin and how he plans to utilise the proceeds.

I’ve sold all my #Bitcoin

Yes, I did. I didn’t lose my faith in Bitcoin, I’m not expecting Bitcoin to be topped out for this cycle. I’ve not become a complete believer in Gold.

I’ve sold all my Bitcoin.

In this longread I’ll explain why I’ve done this and what I’ve done with…

— Michaël van de Poppe (@CryptoMichNL) May 16, 2024

“Yes, I sold. I haven’t lost faith in Bitcoin, but I don’t expect it to peak in this cycle. I haven’t become a full believer in gold,” he wrote.

Technically speaking, van de Poppe “plans to acquire more digital gold later this year.”

According to him, the current bull market is undeniable. Several factors indicate this: pension funds, insurance companies, and major US hedge funds are allocating funds to a spot Bitcoin ETF, CME Group announced the launch of a similar product, and soon “options-based trading will emerge, making the first cryptocurrency a mature global asset.”

For the analyst, this means that the “simplicity” of the four-year cycle will diminish over time, as will the impact of halving on the market:

“Thus, this cycle is the relatively last easy rally, allowing for significant profits on altcoins.”

Trader’s Strategy

Van de Poppe suggested several strategies for “maximising gains in the Bitcoin bull cycle.” First, one can sell the first cryptocurrency at a high price and attempt to buy it back at lower levels.

Secondly, he considered using leverage to trade futures on digital gold, although this option is unavailable to him in the Netherlands.

Thirdly, the analyst proposed “accumulating Bitcoin by stacking sats and generating income outside (or within) the crypto ecosystem through labour.” Van de Poppe likely referred to mining activities.

In the fourth option, the expert recommended “trading altcoins within the Web3 ecosystem.”

“The riskiest path, as you can easily lose funds by misjudging the markets or investing at the wrong time. I chose the latter [option] anyway. I’m 31 years old, an entrepreneur, and have been in the industry since 2017, experiencing several bear and bull cycles over the years,” explained the MN Trading founder.

The Case for Altcoins

Among the reasons van de Poppe sold his digital gold, he highlighted the shifting liquidity.

In his observations, since the approval of spot Bitcoin ETFs, altcoins have undergone a 70% correction, allowing “the first cryptocurrency to stay afloat and experience relatively minor corrections.”

“Looking at previous cycles, one might assume that the shift from Bitcoin to altcoins (around the time of halving) occurs before their decline. This time it’s entirely different, as markets continue to show strength. The only recent weakness is the rotation of Bitcoin into USDT, indicating a slight outflow from ETFs,” the expert explained.

Another factor in the temporary weakness of altcoins, he noted, is the low chances of approval for spot Ethereum ETFs. Nevertheless, the asset “remains a central point of the cryptocurrency ecosystem.”

Despite the negative narrative, numerous factors also point to positive aspects for the altcoin sector. Van de Poppe noted that Invesco’s ETH-ETF application was postponed, not rejected. This obliges the SEC “to clarify certain aspects.”

Additionally, the FIT21 bill, which will be voted on in the House of Representatives, should define the framework for cryptocurrencies in the US, the analyst believes.

Adding to the optimism is the potential imminent conclusion of the SEC case against Ripple. Van de Poppe predicts a victory for the latter.

“Altcoins have been unjustly undermined. Positive aspects cannot be denied. DePIN and RWA are scaling, more and more traditional companies are transitioning to blockchain. It’s time to dedicate yourself to this if you want to achieve significant profits,” the trader emphasised.

Exercising Caution

The MN Trading founder admitted that there are significant risks in using this strategy. According to van de Poppe, he has already lost about 20% of his portfolio in two weeks and may lose another 50-80%, which he is “quite comfortable with.”

“On the other hand, in the next 6-12 months, I could gain 300-900% profit from Bitcoin’s value. But if the first cryptocurrency stabilises during this period, I could achieve another 300-600% profit just by buying more of it,” the expert speculates.

Other users also pointed out van de Poppe’s not very safe approach. Investor Fabio Andreatta stated that such a strategy only increases risks.

All you did is increase your risk. You are very unlikely to outperform Bitcoin. Most altcoins will never reach their ATHs ever again. Nobody knows if there even will be an altseason. Also, you are probably 3-4 months to soon. Most BTC/ALT pairs look horrible. Best of luck to you.

— Fabio Andreatta (@andreattafabio) May 16, 2024

“You are very unlikely to outperform Bitcoin [in terms of returns]. Most altcoins will never reach their all-time highs again. Nobody knows if there will even be an altseason. […] Most BTC/ALT pairs look horrible. Best of luck to you,” he wrote.

Some supported van de Poppe’s confidence but noted that it’s still too early for altcoins.

I’m 100% with you and I have the exact same strategy. But I also think you’re too early to the altcoin party. Everyone should be 100% allocated to bitcoin right now because it’s going to absolutely rip. And altcoins ONLY begin to rip when BTC dominance drops which it won’t yet

— Lord Of Punks (@666cryptofiend) May 16, 2024

Earlier, Merkle Tree Capital’s Chief Investment Officer Ryan Macmillan predicted Solana’s rise to $400 by November.

In May, several analysts predicted the approach of an altseason. Trader Mikybull believes the market is currently in a “disbelief stage,” which will soon transition to an “explosive rally.”