The cryptocurrency market could be in for a rough ride

The cryptocurrency market could be in for a rough ride, according to well-known analyst VirtualBacon. In a recent social media post, he revealed that he has slashed his crypto portfolio by nearly half. His reason? Concerns over the U.S. Federal Reserve's continued liquidity tightening, which he believes could create short-term turbulence in the market.

Well-known cryptocurrency analyst VirtualBacon has slashed his crypto portfolio by nearly 50%, revealing his concerns over the U.S. Federal Reserve's continued liquidity tightening.

In a recent social media post, VirtualBacon, who boasts a following of over 200,000 across platforms like X (formerly Twitter) and Telegram, explained that he had sold 24 of the 36 altcoins in his $100K portfolio.

This move, which reduces his remaining altcoin holdings to 12, comes as the well-known analyst prefers a low-risk approach and avoids newly launched or low-market-cap cryptocurrencies. Among the altcoins he still holds, he highlights AVALAX, ATOM, and LINK, which he says he bought "at the highs."

VirtualBacon's decision to scale back his crypto holdings stems from his belief that the Federal Reserve's current policies could create uncertainty in the crypto market.

"I am keeping 12 alts, each less than 2.5% of the portfolio, and I will be putting 50% of the funds in BTC and ETH in equal measure, and the remaining 50% in the 12 alts as they rise or fall," he adds.

suggesting that he is placing a greater emphasis on Bitcoin and Ether in his portfolio.

While he remains cautious for now, VirtualBacon believes the crypto market will rebound once global liquidity improves.

"The market recovery depends on global liquidity, which I don't see happening in the next 3-6 months. So, it is best to play safe and avoid risky, low-cap, or hyped projects," he concluded.

For now, his strategy reflects a broader trend of caution among investors, as they wait for better market conditions before making bold moves.