While many beginners base their trades on the negativity brought about by devastating events happening in the crypto space, experienced traders base their decisions on different factors, helping them come out on top — even in a bear market.
Speaking with Cryptox, Dan Tapiero, founder of growth equity funds 10T Holdings and 1RoundTable Partners, shared some of his most important strategies to navigate the market. These include having a broader perspective, and avoiding the influence of feelings and people’s fears. Tapiero explained:
“It’s important to understand that the space has really grown. It’s not just about the price of Bitcoin or the price of Ethereum. We have five or six companies that actually made more money last year than in the previous year. 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 digital asset ecosystem that, according to Tapiero, are not correlated. He explained that in 2022, $8 trillion in stablecoins were settled, the total number of nonfungible tokens (NFTs) minted crossed the one trillion mark, and blockchain gaming took off. Tapiero pointed out that three years ago, these were all zero.
Apart from these, the veteran trader also pointed to developments in the decentralized finance (DeFi) space and highlighted that despite the space’s locked value going from $200 billion to $50 billion, it was also at zero a couple of years ago.
“I found like, you know, young guys in the space don’t have the perspective. Five, six years ago, which is not that long ago, nothing exists. You barely even had Ethereum. It was just Bitcoin (BTC). So, as the space broadens out, the value also increases with it,” he explained.
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When asked what he thinks about community sentiments and their impact on his strategies, Tapiero said that they can “see it and sense it,” but he’s not interested in these feelings. He believes crypto is a market similar to other currencies, bonds or stocks. He explained:
“Markets display certain behaviors. I spent my entire life managing a portfolio of financial assets that move around, and honestly, the most important thing is to be able to set your emotion aside and make rational judgments that aren’t impacted by what the news is or what people’s fears are.”
In addition to these insights, the executive shared his thoughts on the next bull phase. “The bear phase is finished,” he said. While Bitcoin (BTC) and Ether (ETH) went down last year, Tapiero said the market has “had a very nice recovery,” and will have an “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 bull phase, we’ll probably hit up to 6 to 8 trillion [crypto market capitalization],” he added.
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