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Crypto Market Outlook: VirtualBacon Reduces Holdings Due to Fed’s Liquidity Tightening
As the global cryptocurrency market continues to grapple with the ongoing impact of the US Federal Reserve’s policy to tighten liquidity, renowned crypto analyst, VirtualBacon, has taken a cautious approach by reducing his holdings. In a recent social media post, VirtualBacon revealed that he had sold at least 24 out of 36 altcoins in his $100K portfolio, citing uncertainty in the short-term market outlook.
According to VirtualBacon’s statement, he believes that the cryptocurrency market may face uncertainties in the coming few months due to the Fed’s decision. As a result, he has opted for a risk-averse strategy by reducing his exposure to altcoins and focusing on more stable assets.
Despite this reduction of his crypto portfolio, VirtualBacon remains bullish about the long-term prospects of the industry. He expects a bull market in 2025, but advises investors to take a cautious approach until macro conditions shift.
It is noteworthy that VirtualBacon has shifted his focus towards a lower-risk strategy by holding a relatively small number of coins. His portfolio now consists of only 12 altcoins, with each holding less than 2.5%. This indicates a clear preference for more stable assets and away from low-market capitalization cryptos or newly launched projects.
The analyst also emphasized that he does not support the investment in risky or low-cap projects, urging investors to adopt a risk-free strategy until macro conditions improve.
Source: https://coinpedia.org/news/crypto-market-outlook-virtualbacon-reduces-holdings-due-to-feds-liquidity-tightening/
