215
It is Memorial Day weekend in the United States and I wish you and your family well. Raise a glass or your celebratory beer and take a second to remember those who have departed.
The last few weeks have been difficult for most as they have experienced the pain of watching their portfolio fiat value decrease... me included. However, for longer term hodlers such as myself it has also proven to be a great opportunity to work on refocusing my Crypto purchases.
When the BTC flash correction occurred a few weeks ago I started to reevaluate some of my holdings. I was way too heavy in ALTs and didn't have a large enough position in Bitcoin. Specifically, I allowed my BTC holdings to get down less than 7% of my overall portfolio (disgraceful, I know). Earlier this year, my BTC percentage was around 30% with Ethereum hanging around 25%. I have continued to DCA monthly into BTC, but I was not making large purchases because of the price. I saw better opportunities in smaller cap ALTs. However at the current price range I have decided to start shifting my focus back towards the MoAC (Mother of All Cryptos). The past week or so I have been pushing the buy button on BTC anytime I can get it under $35K and have managed to increase that BTC percentage a smidgeon.
This is a current view (as of 5/30/2021) of some of my portfolio percentages. My plan is to continue to buy BTC in larger doses over the next few weeks until I can get my Bitcoin percentage back above the 25% mark.
I do want to make one thing clear: I am NOT rebalancing my portfolio in the sense that I am selling my ALTs to purchase BTC. I am hodling these 14 or so ALTs shown as well as the dozen others that are not listed. I am simply focusing on stacking Bitcoin at what I believe is an undervalued price.
But Why?
Because I believe in the long term success of crypto as an asset class and I believe BTC will continue to dominate for many years. You may think it odd that it is not currently the anchor of my investments, but as previously stated I saw better short term value/return propositions elsewhere. Currently I have the opportunity, as do you, to focus on getting that big beautiful digital gold at a discount & back into the top spot of my portfolio.
While I am focusing on snatching Bitcoin under $35K right now- I will continue to DCA into BTC up to the $42K mark or when I hit my goal. I foresee BTC reaching at least into the $150K-200K range this bull cycle so I want to try and get a minimum 4X on my investment in the short term.
If you follow PlanB's Bitcoin stock-to-flow model the assumption of a $150-200K BTC is well within the range of possibility.
When you introduce the amount of corporations, institutional purchases, and major investors/investment groups that will buy Bitcoin this year (and probably during this correction) those numbers become more probable. See recent news regarding Carl Icahn, Wells Fargo, JPMorgan, et al.
Add in the probability that 2021/2022 will see the U.S.A. approve a Bitcoin ETF and that 150K-200K range begins to seem low.
Now for full transparency, there are some ALTs that I will continue to DCA into in the short term to get my bags where I want them. DOT, SOL, LINK, ADA, TEL, and Atom all seem cheap right now given what many of these projects have coming over the next few months. However my major purchases for the short term, until we blow past the $42K mark, is going to be into Bitcoin.
Thank you for reading and don't let any short term FUD or idiots on Twitter/YouTube affect your long term outlook. -Buss
cover photo courtesy of https://www.quoteinspector.com/images/bitcoin/stacked-bitcoins-soft-reflection/
