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Michael van de Poppe, a noted cryptocurrency analyst, advises traders to avoid using leverage ahead of the Federal Open Market Committee (FOMC) meeting.
He explains that it's typical for markets to correct downward before such events due to risk-off sentiment. Both Bitcoin and altcoins tend to decline as investors reduce exposure to volatile assets.
Van de Poppe warns that before the FOMC meeting, the market may witness numerous false moves. These can potentially mislead traders into making poor decisions, and it's crucial to exercise caution without over-leveraging. The real market movements, he suggests, usually occur after the official announcements and outcomes from the meeting.
Van de Poppe's current guidance on navigating pre-FOMC volatility aligns with his broader perspectives on shifting market dynamics. Notably, his caution reflects themes from earlier analyses anticipating the possible end of the crypto cycle amid market top warnings, as well as his assessments regarding the conclusion of the traditional 4-year crypto cycle and its implications for blockchain markets.