- Analyst Michael van de Poppe calls the recent altcoin dip a “capitulation phase.”
- He revealed a portfolio rebalancing strategy to buy into fear and lower his cost basis
- His philosophy is to invest in fundamentally sound projects when they are oversold
Prominent crypto analyst Michael van de Poppe has delivered a detailed breakdown of the recent chaos gripping the crypto markets, shedding light on how he’s navigating what he calls a “capitulation phase” in altcoins. His strategy offers a playbook for turning a market-wide panic into a calculated opportunity.
Van de Poppe’s Detailed Analysis
Van de Poppe opened with a stark observation: Not long ago, Bitcoin dipped below $100,000, sending shockwaves across the broader crypto landscape. Altcoins were hit even harder, with many printing all-time lows or revisiting cycle bottoms.
He attributes the crash to escalating geopolitical turmoil, which acted as the primary destabilizer. Drawing a parallel to the COVID-19 crash, when BitMEX liquidations briefly sent Bitcoin to $3.7K, he noted that in both cases, fear-driven news events triggered mass sell-offs.
This created what he sees as a prime long-term buying opportunity as markets entered a textbook risk-off mode, with gold surging to new highs and oil jumping 10%.
Related: With June Almost Over, Here Are the Altcoins to Watch Closely in July
How Did He Restructure His Portfolio?
Rather than retreat, van de Poppe used the downturn to reassess and restructure his altcoin holdings. At the peak of the chaos, his portfolio was down 60%, a survivable hit compared to individual altcoins that fell as much as 95%.
One standout performer in his portfolio was SEI, which nearly doubled in a matter of days, thanks to a strong bullish divergence. Recognizing the skew, he sold $5,000 worth of SAI and reallocated across several altcoins he still believes in fundamentally–Optimism (OP): $2,000, Celestia (TIA): $1,000, along with Omni, Renzo, AO, and Warhol: $500 each.
He pointed out that for assets like AO, his break-even has been lowered from 90 cents to 37 cents through strategic buying.
Why Rebalance While Still Underwater?
Addressing the inevitable question of why reallocate while still down overall, van de Poppe said that his approach aims to accelerate recovery by compounding potential upside. It’s a risk-aware strategy that has previously worked for him in assets like BitTensor and Ethereum Name Service (ENS).
Related: Analyst Eyes $160 As The Potential Target For Solana
His philosophy hinges on one principle–if the fundamentals of a project remain intact, and the technicals show signs of bottoming, buying into fear is a long-term win. The recovery of the altcoin portfolio, should assets return to their original entry points, would not only restore capital but potentially result in a 2–3x.
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