The cryptocurrency market’s massive sell-off on Wednesday saw a large variety of coins and tokens losing their value in a matter of hours, as indiscriminate selling shattered the market’s previously bullish sentiment. Fears of a further crackdown on cryptocurrency use in China, as well as negative tweets from Tesla CEO Elon Musk, sparked a near $1 trillion sell-off that wiped out weeks, if not months, worth of gains.
Bitcoin, Ethereum, and other cryptocurrencies have had a bad week, to say the least. Although it would be reckless to try to guess where things will go next, Michal van de Poppe has revealed which assets he is purchasing during the current crypto market crash.
According to the analyst,
Altcoins didn’t drop that much, some of them were even running up in the Bitcoin pairs… On Wednesday, the panic started to kick in and we saw that altcoins were starting to drop heavily as well.
He said that if you want to invest in stocks, now is the right time to do so. Fear levels are at an all-time high. Panic is pervasive. The consensus is that crypto is dead, but what has changed fundamentally about the decentralised finance (DeFi) domain, as well as all the other altcoins and projects? There’s nothing. Ethereum is still in a bull market as compared to Bitcoin.
Van de Poppe revealed on Twitter this weekend that he bought the dips in oracle projects Chainlink (LINK) and DIA, as well as Bitcoin, the flagship cryptocurrency.
According to the analyst, the trick is to look at large-cap projects like Ethereum or Litecoin if investors want to take advantage of the dips and preserve their money as much as possible (LTC).
Van de Poppe believes that, as in the past, once Bitcoin starts to recover from its plunge to the low $30,000 range, altcoins will soon follow, potentially leaving the cheapest entry points behind.
If you want to get into positions that have the lowest risk, you’re going to look at things like Litecoin, you’re going to look at things like EOS or Ethereum. If you’re looking for more risk at this stage you’re going to look at smaller altcoins. So you have to watch Bitcoin but in general, if that bounces, altcoins will most likely come back to play and bounce back quite swiftly.”