The last cryptocurrency trading cycle started between 2019 and 2020, reaching its peak in November 2021 and triggering a retracement. During its bull rally, an expert has allegedly turned a $40,000 initial investment into $10 million, speculating on altcoins.
This is the story Michaël van de Poppe told on September 27 through a post on X, encouraging his followers. According to the CIO and founder of MNConsultancy, MNCapital, and MNAcademy, investors can achieve “ridiculous returns” during a bull cycle.
“You need to assure yourself that during a bull cycle, ridiculous returns can be made. If I can do it, then you can do it too.”
– Michaël van de Poppe
As van de Poppe explained, he achieved the 250-fold return mainly by trading and investing in altcoins, with good timing. Besides knowing the best time to buy and sell each cryptocurrency, the expert relied on “compounding through staking.”
Timing the market well and staking compound
However, “timing [the market] well” is not easy, even for experienced players who try to navigate the price action through educated guesses. The longer the time frame and the more information available, the better the chances of making profitable decisions.
Overall, traders will look for signals and indicators forecasting a trend shift or an impulsive movement while avoiding uncertain scenarios. These could manifest in diverse forms and shapes, requiring time in the market to learn how to identify them.
While some metrics can offer valuable insights, others can be easily manipulated, as Finbold explained in a recent publication about “Daily Active Addresses/Users.” On a similar note, investors must learn basic security standards and operate in a safe environment to avoid losing their gains to phishing attacks and other exploits.
As for compounding through staking, proof-of-stake protocols and the decentralized finance (DeFi) ecosystem may present interesting opportunities for savvy investors. Essentially, users can allocate and lock part of their holdings into specific activities that generate yield in exchange for liquidity.
For example, staking the native token of a chain to help secure it, receiving yield from issuance and transaction fees. In DeFi, investors can provide liquidity to Automated Market Makers (AMM) or lending protocols, being paid by these protocols’ users.
When will the altseason or altcoin season start in 2024?
Interestingly, Michaël van de Poppe and other analysts have been warning of an incoming altseason or altcoin season for 2024. This event is made of a phase of the cryptocurrency trading cycle when small- and mid-cap coins outperform the leaders.
Finbold reported some of these analyses and signals, suggesting this cycle’s altseason is about to start, potentially “timing it well.”
Traders like Credible Crypto and Alan Santana have shown optimism regarding specific altcoins despite being currently bearish on Bitcoin (BTC). Moreover, Ali Martinez believes an altcoin season is “just around the corner,” while Finbold reported a significant chart break out.
Crypto Total Market Cap Excluding BTC and ETH, daily chart. Source: TradingView / Finbold
Notably, the fifth-richest crypto millionaire, James Fickel, has mostly held his position in Ethereum (ETH) staking through different compounding tools.
If all these expectations come to light, cryptocurrency traders and investors could be facing an opportunity to seek “ridiculous returns,” as van de Poppe said. Nevertheless, cryptocurrencies can be highly unpredictable and volatile, requiring caution during speculation and a clear plan to face the uncertainties.
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