Analyst Predicts Crypto ‘Super Cycle’, Outlines Strategies How to Maximise Your Returns
He predicts a prolonged Bitcoin cycle due to increased ETF inflows and a shrinking supply, which could significantly elevate Bitcoin’s market cap.
Van de Poppe anticipates a ‘super cycle’ driven by macroeconomic factors, new technologies in DeFi, and growing institutional interest, comparing it to the boom of 2017.
Crypto analyst Michaël van de Poppe called the recent crypto crash one of the biggest we have experienced in the past year. But he feels it has also hit the reset button on the market and provides opportunities.
He said:
Bitcoin halving hype slowly fading away + tremendous opportunities on the Altcoin markets.
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While he highlighted altcoin buying as a good strategy in the current market, van de Poppe also revealed his strategy for maximising profits and taking advantage of the Bitcoin halving:
Supply Dynamics and Extended Cycle Theory
Van de Poppe notes that unlike previous cycles, this cycle includes significant ETF inflows, which adds substantial capital to the market. This broadening investor base contributes to a heightened impact of each dollar spent on Bitcoin.
The significant impact of every purchase is going to increase over time, especially through the Bitcoin halving as there’s going to be a lower supply on the markets.
In a recent video Michaël suggested that due to Bitcoin’s reduced supply from the halving event and ongoing high demand, a supply shock is expected, which will push prices higher. Additionally, he believes that the traditional four-year cycle of Bitcoin may be extended, leading to a longer and potentially more lucrative market phase.
I think we’re going to get a longer cycle overall, which means that also the number of where Bitcoin can go to is going to be higher than we were expecting it to go to.
Influence of Macroeconomics and New Technologies
The influence of macroeconomic factors will grow due to more participants in the market and the increased significance of Bitcoin in the financial sector. Van de Poppe also suggests that the introduction of new technologies in the market, particularly around decentralised finance (DeFi), will support what he refers to as a ‘super cycle’.
So, to be quite fair in terms of price action and price prediction, I think we are into the super cycle. If you compare this current cycle to any of the previous cycles, I think you need to compare it with 2017.
The analyst predicts a significant increase in Bitcoin’s market cap, driven by institutional investments and the growing acceptance of cryptocurrency as a mainstream financial asset. The potential market cap, he suggests, could reach as high as US$30 trillion (AU$46 trillion) to US$35 trillion (AU$54 trillion) in an optimistic scenario.
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Finally, van de Poppe says, given all this Bitcoin is just on the verge of a beginning bull run – he recommends keeping your Bitcoin and making more Bitcoin by buying altcoins, eventually rotating them back into Bitcoin.
Your optimal goal in this cycle is to keep your Bitcoin and actually the next bear market the exact same, but keeping your Bitcoin and making more Bitcoin by buying altcoins. And by buying altcoins, you need to be buying them at this actual moment. Because the rotation is still going to happen.
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Filed under: Bitcoin - @ April 15, 2024 7:00 pm