Editor’s Note: We know many of you still have questions for us about Binance pulling out of the U.S. and Bittrex reducing the amount of coins American investors can trade. Over the next few weeks, we will be updating our how-to guides to reflect the new trading environment. As you’ll see from today’s update, we still believe in the potential of altcoins. And with the crypto markets taking off, altcoins should continue to be part of your portfolio.
Dear Member,
One week ago, bitcoin was trading around $9,800. Despite the recent pullback from above $13,000, it’s currently trading around $11,818.
The sharp pullback of around 20% we saw Thursday was simply a natural reaction to the parabolic move up. Bitcoin is still up a very nice 18% on the week.
These types of pullbacks are extremely common during bull markets. A crypto analyst I follow on Twitter, Josh Rager, posted the chart below showing just how common they are.
Such pullbacks in price are to be expected. If you’re looking to add to your bitcoin holdings, these pullbacks offer excellent opportunities to buy the dips on the way up.
With the bitcoin halving coming up in May of 2020 and institutional interest in crypto ramping up, bitcoin should continue to form the foundation of every crypto investor’s portfolio.
Altcoins
Most altcoins are struggling to keep up with bitcoin, which is what we’ve been expecting. I continue to believe that bitcoin will continue to outperform the overall altcoin market for at least the next year.
But I do believe that as the bitcoin bull market picks up steam, interest will naturally flow into select high-quality altcoins. The few altcoins that become popular with institutional investors should deliver incredible returns in the coming years.
I continue to believe that our portfolio coins nano, decred and ravencoin will be most appealing to institutional investors. All three have done well this year. And all held up quite well during the bear market. Each coin’s team continues to make solid progress, and the new bull market should serve to light a fire under them.
Plus, none of these three coins had an ICO, so I have no concerns that any will be classified as a security by regulators.
If you’re looking to add to altcoin positions, I suggest focusing on these three for now. I am reevaluating all our other positions and will provide further guidance on them soon. I plan to begin exiting some of our other positions once prices rise higher.
In terms of new recommendations, I am currently evaluating Cosmos. I believe it has serious potential. I will let everyone know once I make a final decision on this one.
Good investing,
Adam Sharp