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It appears that crypto analysts strongly believe the continuation of the US Fed’s policy of tightening liquidity will create short-term challenges in the cryptocurrency market. An acclaimed cryptocurrency analyst, identified as VirtualBacon on X, in a social media post, reveals that he has cut short his crypto portfolio by nearly half, claiming that the crypto market may confront certain uncertainties in the next few months. Here is a breakdown of his strategy. Dive in!
Why the Crypto Analyst Has Cut Short His Holdings
According to VirtualBacon, the cryptocurrency market, in the coming few months, may confront certain uncertainties due to the current Federal Reserve policy of tightening liquidity.
The analyst states that he has sold at least 24 out of 36 altcoins in his $100K portfolio.
Meanwhile, he asserts that he is confident about the long-term potential of the cryptocurrency market. He even notes that he expects a bullish market in 2025.
🚨 I just sold over half of my crypto portfolio.🚨
— VirtualBacon🦇🔊 (@VirtualBacon0x) March 26, 2025
This isn’t a top call. I’m still bullish for 2025.
But with the Fed dragging its feet on QE and liquidity still tightening, the next few months will be dangerous.
Here’s what I’m holding and why. 🧵👇
It is clear that he thinks certain cryptos will overcome the predicted bearish months.
To understand which are those cryptos he believes will overcome the tough months, it is important to know which are those cryptos he still holds in his portfolio.
Key Cryptos the Crypto Analyst Is Holding and Why
VirtualBacon reveals that Bitcoin constitutes at least 30% of his current cryptocurrency holdings, Ethereum 25%, Solana 28% and stablecoins less than 4%.
He also notes that his portfolio only has 12 altcoins in total and each constitutes less than 2.5%.
He emphasises that neither he holds low market capitalisation cryptos nor he supports newly launched cryptocurrencies, indicating that he advocates for a low-risk approach.
According to VirtualBacon’s post, SUPER and BEAM are the two gaming tokens he holds, NEAR and TAO are his trusted AI tokens, AXL is the RAW token he supports, AMPL is his favourite DeFi token, and BORG is the utility token he trusts.
As per the post, he even trusts a coin from the meme coin category. PEPE is his most trusted meme coin, indicates the post.
What’s Next? The Crypto Analyst’s Market Outlook
VirtualBacon asserts that the crypto market will recover from the challenging state once global liquidity expands.
The crypto analysts recommend that investors should adopt a risk-free strategy until macro conditions shift.
He advises that investors should refrain from investing in risky, low-cap or hyped projects.