Best period to invest in altcoins is 6-10 months prior to the Bitcoin halving, that's now; analyst says


  • Michaël van de Poppe says it is crucial for altcoins to start moving in this period.
  • According to the value-based investing and trading expert, the current jump in altcoins is attributed to VCs pumping.
  • He holds that getting the funding going on altcoins has nothing to do with any change in the market environment.

CEO and founder of MN trading and value-based investing and trading expert, Michaël van de Poppe, says the bull market may be near, considering how altcoins have started to move. He bases his argument on the fact that altcoins tend to start moving when the worst period of a cycle sets in.

Also Read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: CPI jump was expected to stir BTC price, and it has

Best period to invest in altcoins is now

According to Michaël van de Poppe, the best period to invest in altcoins is now, as we are in the worst period of the cycle. In his opinion, altcoins have started recording massive moves.

The analyst attributes the moves by altcoins to venture capitalists (VCs), who are pumping to get the funding going on those assets. With this, Michaël van de Poppe separates any assumption that market changes may be driving altcoins.  

You might want to wonder why some altcoins are making giant moves. The most obvious answer would be: 'VC's are pumping this to get the funding going on those assets and this has nothing to do with any change in market environment.

He says that this is when “the big coins start to move,” actualizing the change in the environment.

Bitcoin halving as a timer

The analyst uses the Bitcoin halving set for early 2024 (around April) as timer for investing in altcoins.

The best period to invest in altcoins is 6-10 months prior to the Bitcoin halving. That's now.

In his opinion, the last six to ten months to the Bitcoin halving is known to be the “worst period of the cycle,” with traders and investors beginning to lose their faith in the markets. In turn, the market shows ultra-bearishness with little to no return on investment (ROI).

Michaël van de Poppe uses Chainlink (LINK) to support his argument, showing how rallies are sold off after investors hodl for multiple years. Chainlink price action shows a “massive consolidation period,” characterized by minimal movement. During this time, investors think every time the price confronts resistance will translate to a “break out of a massive sideways construction.” They also anticipate the price dropping to new lows every time a new range low is triggered. On this note, he challenges that:

On both pairs, we see deviation beneath the lows, followed by a breakout upwards with the current retest holding as support.

LINK/BTC 3-day chart

This, to Poppe, is a bullish indicator for continuation.

Meanwhile, some hold that during times when the market is bearish, investing on altcoins with utility is advisable as they offer actual value. Conversely, during bull markets, any coin is a plausible option to invest in as everything explodes. Still, the ones with value skyrocket.

Nevertheless, it is important to conduct one’s own research, with Poppe’s outlook leaving a lot unsaid considering altcoins are not breaking out with Bitcoin dominance still on the rise while altcoins steadily edge south.

Also Read: Alt season likely in Q3 with declining Bitcoin dominance, July emerges as altcoin month

Cryptocurrency metrics FAQs

What is circulating supply?

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

What is market capitalization?

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

What is trading volume?

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

What is funding rate?

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

BTC steadies  as Microsoft shareholders vote on investment proposal looms

BTC steadies as Microsoft shareholders vote on investment proposal looms

Bitcoin hovers around $97,800 on Tuesday after almost a 4% drop on Monday as traders look at the upcoming Microsoft shareholders' vote on Tuesday to add BTC to the balance sheet, a move that, if approved, could catalyze a further rally. 

More Bitcoin News
Altcoins LTC, CRV and ONDO recover after retesting key support levels

Altcoins LTC, CRV and ONDO recover after retesting key support levels

Litecoin, Curve DAO and Ondo prices recover on Tuesday after retesting and bouncing off key support levels following Monday’s double-digit correction. The technical outlook suggests a further recovery ahead, with the MACD momentum indicator supporting the rebound.

More Cryptocurrencies News
DOGE and SHIB leveraged traders wiped out: Over $108 million in liquidated

DOGE and SHIB leveraged traders wiped out: Over $108 million in liquidated

Dogecoin and Shiba Inu prices continue to edge down on Tuesday after falling more than 10% on Monday. The recent downturn at the start of this week has liquidated over $108 million from these dog theme-based memecoins in the last 24 hours.

More DOGE News
SEC Commissioner Caroline Crenshaw tagged more anti-crypto than Gensler as voting approaches

SEC Commissioner Caroline Crenshaw tagged more anti-crypto than Gensler as voting approaches

Crypto advocacy group Cedar Innovation Foundation and several industry leaders are rallying against the renomination of  SEC Commissioner Caroline Crenshaw, who allegedly opposed the approval of the spot Bitcoin ETFs in January.

More Cryptocurrencies News
Bitcoin: Long-awaited $100K milestone meets profit taking

Bitcoin: Long-awaited $100K milestone meets profit taking

Bitcoin ends the working week hovering around $98,000 after a very volatile Thursday when it surpassed the $100K milestone and underwent a sharp correction. Strong institutional demand, whale accumulation, and the choice of a pro-crypto figure to lead the US SEC fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP