While many novice traders focus their trades on the pessimism caused by terrible occurrences in the crypto world, professional traders base their judgments on a variety of criteria, allowing them to come out on top – even in a bear market.
Dan Tapiero, founder of growth equity funds 10T Holdings and 1RoundTable Partners, spoke with Cointelegraph about some of his most critical market ideas. These include broadening one's perspective and avoiding the effect of emotions and people's worries. Tapiero elaborated:
“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.”
Tapiero also provided cases of industries within the larger digital asset ecosystem that are not connected. He stated that by 2022, $8 trillion in stablecoins had been resolved, the total number of nonfungible tokens (NFTs) produced had surpassed one trillion, and blockchain gaming had taken off. Tapiero pointed out that these were all zero three years ago.
Aside from this, the experienced trader mentioned changes in the decentralized finance (DeFi) area, emphasizing that, despite the field's locked value dropping from $200 billion to $50 billion, it was also at zero a few 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. So, as the space broadens out, the value also increases with it,” he explained.
When questioned about community opinions and their influence on his plans, Tapiero stated that they can “see it and sense it,” but he isn't interested in them. He considers cryptocurrency to be a market akin to conventional currencies, bonds, or equities. He clarified:
“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 and Ether 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.
