Michaël van de Poppe, founder of MN Fund, recently shared his views on the current altcoin market, highlighting eight altcoins that he believes are significantly undervalued. He emphasized important investment concepts such as mispricing and risk, while providing a strategic perspective on navigating the cryptocurrency space in this particular market cycle.

Understanding Mispricing: The Key to Unlocking Opportunities for Altcoins

Van de Poppe explains that mispricing occurs when the current market value of an asset differs from its intrinsic value, creating potential opportunities for investors. Using Bitcoin as a prime example, he illustrates how prices can fluctuate between overly high or low levels due to market sentiment, external events, and fundamental factors.

He cites Bitcoin's peak near $70,000 in 2021, which many deemed overly hot, compared to the drop to $20,000 after a series of unrelated crises such as the collapse of FTX and the downfall of Terra Luna. According to Van de Poppe, the discrepancy between price and value defines the opportunity for traders to enter or exit positions.

Risk and Reward

According to the analyst, understanding risk is crucial when investing in altcoins. Altcoins are inherently more volatile than traditional assets such as bonds, which means there is greater profit potential, but it also comes with higher risks.

He emphasized the importance of comparing potential returns with risk-free benchmarks, such as bond yields or Bitcoin performance, to ensure that investments in altcoins yield attractive returns after adjusting for risk.

These 8 Alternative Currencies Could Quadruple in 4 Months

Van de Poppe has named eight altcoins that he is currently accumulating, all of which he considers to be severely undervalued compared to their potential. Specifically, he cited Optimism (OP), Bittensor (TAO), SEI, Wormhole (W), Renzo (REZ), Celestia (TIA), AO, and RocketPool.

He highlighted examples like Optimism, which is currently trading much lower than its peak in December 2024. He projected a growth forecast of nearly 280%. Similarly, according to the analyst, Bittensor expects a potential growth of 380% based on its current valuation.

Why Now Is a 'Recession Period' for Cryptocurrency

Van de Poppe describes the current market phase as a 'recession phase' for altcoins, characterized by low trading volume, reduced venture capital activity, and slowing marketing momentum. However, he believes that liquidity will return, thanks to the fundamental mispricing gap combined with the inherent volatility of cryptocurrency assets.

He warns investors to expect a price drop risk of 40-50% in the short term. However, he argues that the long-term upside potential could exceed 300%, making this an attractive investment opportunity for savvy investors.