Back in June 2024, I went all-in on altcoins with a separate portfolio. Today, that portfolio is down about 70 to 75 percent. Many would be panic-selling right now. I’m not. In this piece, I’ll explain why I’m holding on, what went wrong, and why I believe this phase of the cycle is actually crucial. This is purely educational and not financial advice.
The Crypto Cycle and a Major Drawdown #
The altcoins I bought for this portfolio are hitting new lows and have fallen significantly since my decision to go all-in. Along the way, I have done some rotation: for example, I sold ENS in December, capitalized on the pump in Omni, and actively traded Peaq. That softens the blow, but it remains a tough period.
Important: this altcoin portfolio is my personal portfolio, separate from my companies. Besides this portfolio, I have a trading account and other investments. Additionally, there are two funds: MN Capital Fund (for venture and trading, with my own capital) and MN Fund, a regulated liquid fund with the AFM (Dutch Authority for the Financial Markets).
That fund follows a hybrid strategy with Bitcoin, Ethereum, blue chips, and high-frequency trading, and is actually slightly positive since its inception, while Bitcoin has fallen in that same period.
Macro, Liquidity, and Bitcoin #
I’ve seen these drawdowns before. In 2019, I was also down about 70 percent on altcoins like Phantom, Matic (now Polygon), and Verasity. In hindsight, those turned out to be huge winners. That doesn’t guarantee anything for now, but it shows how quickly sentiment can swing.
Currently, interest in crypto on social media is about 70 percent lower than at the peak in September and comparable to the lows of 2022. Historically, that has often been a good accumulation phase.
At the same time, the macro picture is changing: quantitative tightening (QT) has stopped, there was a large overnight repo operation, and more quantitative easing (QE) is likely on the way. That means extra liquidity, which could be beneficial for risk assets like Bitcoin, Ethereum, and altcoins in the long run.
Altcoins, Ethereum, and My Strategy #
My altcoin portfolio is now worth around $27,000, a drop of about 75 percent. Some positions are holding up relatively well, like TAO and Optimism. Others, like Renzo and Wormhole, are clearly hurting. My plan is not to sell everything now, but to remain selective and rational:
- Rebalance if one position (for example, TAO) becomes too large relative to the rest.
- Rotate out of underperformers into projects or narratives with better prospects.
- Use strong spikes (like a 3x on Omni) to take profits and buy back lower.
For smaller fluctuations of 10 to 20 percent, I won’t trade continuously; I focus on the big, logical moves.
I’m willing to endure this drawdown because I have three cycles of experience and know that markets can turn quickly. But: this is my risk profile. For most people, a simple strategy with only Bitcoin and Ethereum is probably wiser. I could be completely wrong, and none of this is a guarantee. Patience, realism, and risk management remain the core for me—especially now.