While many beginners base their trades on the negativity brought about by the devastating events taking place in the cryptocurrency space, more experienced ones base their decisions on different factors, helping them emerge victorious, even in a bear market.
In an interview with Cointelegraph, Dan Tapiero, founder of growth equity funds 10T Holdings and 1RoundTable Partners, shared some of his top strategies for navigating the market. Among them, having a broader perspective and avoiding the influence of people’s feelings and fears. Tapiero explained:
“It’s important to understand that the space has really grown. It’s not just about the price of Bitcoin or Ethereum. We have five or six companies that last year made more money than the year before. So, even during the time of a massive drop in the price of Bitcoin and Ethereum, we’ve had companies do better.”
The executive also gave examples of sectors within the broad ecosystem of digital assets that he says are not correlated. He explained that in 2022 USD 8 trillion in stablecoins were liquidated, the total number of non-fungible tokens (NFTs) minted exceeded one trillion and blockchain games took off. Tapiero pointed out that three years ago all this was zero.
Aside from this, the veteran trader also pointed out the developments in the trading space. decentralized finance (DeFi) and noted that even though the locked-in value of the space has gone from $200 billion to $50 billion, it didn’t exist a couple of years ago either.
“I realized that, you know, young people in the space don’t have the perspective. Five, six years ago, which isn’t that long ago, there was nothing. There was hardly any Ethereum. It was just Bitcoin (BTC). So as the space gets bigger, the value gets bigger with it,” he explained.
When asked what he thinks of the community’s sentiments and their impact on his strategies, Tapiero said they can “see it and feel it,” but he doesn’t care about those sentiments. He believes that the crypto space is a market similar to other currencies, bonds or stocks. He explained it this way:
“Markets show certain behaviors. I’ve spent my whole life managing a portfolio of financial assets that move from one place to another and, honestly, the most important thing is to be able to put emotions aside and make rational judgments that don’t affected by the news or people’s fears.
In addition to these reflections, the executive shared his thoughts on the next bullish phase. “The bear phase is over,” he said. Although Bitcoin (BTC) and ether ETH) fell last year, Tapiero said the market “has had a very nice recovery” and will have a “explosive” and broad bull market.
“I think we’ll see new highs probably in the second half of 2024, 2025. And I think in that bullish phase, we’ll probably hit 6 or 8 trillion [de capitalización del mercado de criptomonedas]”, he added.
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