The cryptocurrency market is heated, and as a result, traders and investors are placing bets on other crypto assets in addition to Bitcoin.
This is the case for a popular cryptocurrency trader who accurately hit Bitcoin’s rise to around $ 19,000.
The cryptocurrency strategist known in the community as Jack Sparrow said he believes BTC should be fixed.
In that regard, he said he is managing risk as the BTC is close to breaking its historical record.
Jack Sparrow further commented that he was ridiculed when he bet on the $ 19,000 BTC.
“Now, I made a profit close to ATH and in cash after a 400% increase since March and I continue to be ridiculed by the same people …”, he said.
Altcoins bet
According to the analyst, Bitcoin close to its historic high is risky. That’s because there are many sales orders at $ 20,000 which can lead to a downturn in the market.
“I’m just taking the opportunity for the market to deny unrealized profits. If the market is generous, I have the opportunity to buy more. If not, I will buy later as a defined risk level. ”
So, while waiting for the Bitcoin fix, Jack says he has his eye on Ethereum (ETH), yearn.finance (YFI) and Uniswap (UNI) as his top altcoin choices.
Long-term Bitcoin optimism
Although the analyst is pessimistic about Bitcoin in the short term, he believes the cryptocurrency could rise to $ 396,666 in 2023.
According to him, this may happen because gold should lose its appeal as a value reserve asset.
In that sense, he suggests that the largest cryptocurrency will go through two shorter cycles, peaking in 2021 and 2023. Then, it should enter a long cycle in the bear market.
Jack Sparrow’s speculative theory is based on cycles of gold and technology adoption.
“Here’s the deal: technology has become a reserve asset, replacing the gap that gold left behind as a reserve asset, losing merit. Technology is where many dollars have been stored and wealth has been earned / preserved. Bitcoin is an extension of technology, an extension with more features than gold. ”
Finally, he analyzed the logarithmic scale to illustrate how the current high is “faster and steeper” than previous ones.
“The price, on a logarithmic scale, is surpassing the 2013-2017 cycle for now. Maybe it’s a little early to talk, but I think this cycle will compete with the previous one. In the meantime, my eyes are on ETH, YFI and UNI ”, he concluded.
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