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.

Related: Blackrock CEO issues dire warning over ‘debt ceiling drama’ — Bullish for Bitcoin?

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.

Magazine: ‘Moral responsibility’ — Can blockchain really improve trust in AI?