Dan Tapiero, an experienced trader, advises that sound decision-making in trading should remain impervious to market fears and anxieties.
Newcomers in the trading sector often base their moves on the pessimism that disastrous incidents in the crypto world provoke. In contrast, seasoned traders employ unique strategies that allow them to maintain success, even during bearish market trends.
In a conversation with Cointelegraph, Dan Tapiero, who established 10T Holdings and 1RoundTable Partners growth equity funds, offered invaluable guidance on market navigation. He emphasized the need for a comprehensive viewpoint and the avoidance of emotional influences and public fears. Tapiero elucidated:
“We need to recognize the substantial expansion the crypto sector has experienced. It’s not solely about Bitcoin or Ethereum’s price anymore. We’ve seen multiple companies exceed their previous year’s earnings last year. Despite dramatic Bitcoin and Ethereum price drops, many businesses have thrived.”
The seasoned trader cited instances of diverse digital asset sectors that he believes do not correlate. He disclosed that in 2022, stablecoins had settled transactions worth $8 trillion, the total number of nonfungible tokens (NFTs) minted surpassed one trillion, and blockchain gaming saw significant growth. Just three years ago, these figures were negligible.
Furthermore, Tapiero underscored advancements in the decentralized finance (DeFi) sector, pointing out that even though the locked value in DeFi plunged from $200 billion to $50 billion, it was virtually non-existent a few years ago.
“Younger people entering the space may lack perspective. Just five or six years ago, not much was in place; Ethereum was barely on the scene, and Bitcoin dominated. As the industry diversifies, its value consequently rises,” he expounded.
When probed about the influence of community sentiments on his strategies, Tapiero admitted that although he notices them, he does not give them much weight. He asserts that the crypto market behaves similarly to other financial markets, like stocks or bonds. He further elucidated:
“Markets exhibit certain behaviors. I have spent my life managing financial assets portfolios, and honestly, the crucial aspect is to separate your emotions and make rational decisions, undisturbed by news or public apprehensions.”
In addition to these perspectives, Tapiero also shared his predictions for the upcoming bullish market phase. He anticipates a vibrant and broad bull market following the end of the current bear phase. While Bitcoin and Ether experienced a drop last year, he sees the market making a significant recovery.
“I foresee new peaks probably towards the latter half of 2024 or 2025. During that bull phase, we may see the crypto market capitalization reach between 6 and 8 trillion,” he concluded.