‘Not just Bitcoin price’ — Dan Tapiero shares tips on navigating the bear market

While many begin­ners base their trades on the neg­a­tiv­i­ty brought about by dev­as­tat­ing events hap­pen­ing with­in the cryp­to space, expe­ri­enced traders base their deci­sions on dif­fer­ent fac­tors and are able to come out on top of oth­ers, even in a bear market. 

Speak­ing with Coin­tele­graph, Dan Tapiero, the founder of growth equi­ty funds 10T Hold­ings and 1RoundTable Part­ners, shared some of the most impor­tant things that he employs as he nav­i­gates the mar­ket. This includes hav­ing a broad­er per­spec­tive in the space and not being influ­enced by 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 last year, $8 tril­lion in sta­ble­coins were set­tled, one tril­lion non­fun­gi­ble tokens (NFTs) that have been mint­ed and blockchain gam­ing becom­ing big. 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 also high­light­ed that while the space’s locked val­ue went from $200 bil­lion to $50 bil­lion, it also start­ed with 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 about what he thinks about com­mu­ni­ty sen­ti­ments and their impact on his strate­gies, Tapiero said that they are able to “see it and sense it,” but he’s not inter­est­ed in these feel­ings. He believes that sim­i­lar to oth­er cur­ren­cies, bonds or stocks, cryp­to is a mar­ket. 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 also shared his thoughts on the next bull phase. “The bear phase is fin­ished,” he said. While Bit­coin and Ether (ETH) went down last year, Tapiero said that 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,” he added. 

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