Alpha 12's Advice If You Hold Any Altcoins

Market Overview

Let’s face it.

Bitcoin is near $100k yet most people are salty.

Sentiment is through the gutters.

And we’re still currently only 10% away from all-time highs.

The reason for that is:

Most people don’t own Bitcoin.

Most people own alts.

And alts are BLEEDING.

Bitcoin is still in a bull market, but altcoins are 100% in a bear market.

So what should you do?

Should you continue bagholding your alts that are most definitely not in profit?

Or should you wait for the resumption of the bull market so you can exit at your targets?

Here’s our take:

We don’t think alts will rally way beyond their all-time highs even when the bull run resumes.

Some of them will hit their highs and consolidate.

The best of them will make slightly new highs.

But most of them won’t even reach their highs.

This is a Bitcoin-driven market.

And the sooner you realize that, the better it will be for you.

In previous bull markets, alts rallied because crypto tokens were seen as a ‘better’ alternative to Bitcoin in terms of risk/reward.

Now, crypto is so diluted with alts that nobody cares about the quality of the projects anymore.

There are simply too many tokens.

And most people will come/have come to the conclusion that there really is no better alternative to Bitcoin.

So that’s why we don’t think a broad-based altseason is on the cards.

That doesn’t mean they’re all going to zero. They’re definitely going to recover, but not in the way you expect.

So it’s up to you.

You can choose to wait for Ethereum to go back to $4000 (which it will), or you can sell now and consolidate your capital into Bitcoin.

By the time Ethereum rallies to $4000 again, Bitcoin will have made serious new highs. It might be closer to $150k than $100k.

Our Portfolio

The only alt we currently hold is SOL because it’s the strongest of them all. There’s definitely a reality where SOL rallies beyond $300 and closer to $500.

But it’s just 5% of our total portfolio.

We made the decision to focus purely on Bitcoin and leave a percentage in cash to deploy into leverage whenever the market is trending again.

We strongly believe a portfolio of 80% Bitcoin and 20% Bitcoin 2x (at the right conditions) will outperform a portfolio with a mixed bag of alts.

You don’t need alts to outperform Bitcoin, and that is the takeaway from this week’s newsletter.

Bull Market Update

Is the bull market narrative even still a thing?

Yes.

We are most definitely going higher some time this year.

There are simply too many positive catalysts.

Read last week’s newsletter for a deeper dive on the fundamental state of the market.

But in summary, it’s looking good.

Fears of tariffs are overblown, the US dollar will continue weakening, and the business cycle is just starting to expand.

Which is good for risk assets.