The Bitcoin bulls are far from exhausted. But even those who have not yet invested in Bitcoin can still score.
True to the motto “don’t put all your eggs in the same basket”, the Easter Bunny is a real financial genius who has mastered the art of diversification. Bitcoin shouldn’t be neglected when it comes to portfolio allocation. A look at historical data shows how well BTC is suitable for adding to a portfolio. If you look at the average return on various asset classes over the last ten years, it becomes clear: Bitcoin is a super asset.
In the period from 2011 to 2021, BTC brought an exorbitant 17,787,868 percent profit. Admittedly, if your name is not exactly Trace Mayer or Max Keizer, you might have missed this moon return. Of course, that is no reason to ignore digital gold. Because, as the graphic above shows, you can still expect returns of over 200 percent annually from Bitcoin.
A look at the halving cycles also suggests bullish tones. If one compares the linear price growth of the last few cycles with the current one, one has to come to the conclusion that this is far from the end of the flagpole.
We generally recommend the logarithmic chart view. Sometimes the linear representation brings things into perspective quite well. From this point of view, a price growth beyond the 300,000 US dollar does not seem to be ruled out in 2021.
The bullishness of Dan Held, a bitcoinist from the very beginning and growth strategist at the Kraken bitcoin exchange, knows no bounds. He thinks a Bitcoin rate of one million US dollars is “ possible “ by the end of the year. And no, that wasn’t a belated April Fool’s joke. Well then, cheers the bull market.
But how much BTC is enough? There is no general answer to this question. It depends on the investor’s personal risk preferences. The only wrong answer, however, is zero. Because even portfolios with one percent BTC and 99 percent cash beat stock indices like the S & P500. Or in other words:
Others, on the other hand, see a no-brainer for all-in positions in the current market phase. Ki-Young Ju, CEO of the on-chain data service CryptoQuant, sees the signs for a BTC Yolo position coming.
What Ki-Young Ju reads from the coffee grounds here translates into something like this: In the hot phase of the bull run, movement comes into play, and market players are increasingly shifting coins towards exchanges. After all, some Bitcoiners want to take eggs that have long been hollowed out of their baskets in order to exchange them for a Lambo, for example. Ergo, the velocity, i.e. the speed of circulation, is increasing — a sign that the market is overheating.
But if you compare the current Bitcoin Velocity with that of 2017, it is noticeable that there is still room for improvement. In other words, the bull market is far from its plateau. For some market watchers, that means all-in.
Analyst Joseph Young also suggests that the Bitcoin market made a huge leap between the bull markets in 2017 and 2021.
At that time, the cryptocurrency №1 still had a much more wicked image. The bubble, which has often been warned, should then burst for the time being at the end of December. In the meantime, however, the Bitcoin market has taken many important steps and the asset has become a serious player on the global financial market. Most recently, the market capitalization of the №1 cryptocurrency even exceeded the historic mark of one trillion US dollars.
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Disclaimer: These lines are not a substitute for investment advice, investments in the crypto market are made at your own risk. Invest only as much as you are willing to lose. I get commissions for purchases made through links in this post.