Cryptocurrency markets are heating up

The cryptocurrency markets are heating up. Bitcoin halving has passed and whales (people who buy a lot of Bitcoins) have moved their funds out of cryptocurrency exchanges. Several altcoins have already increased tripple digits. Ethereum 2.0 is about to launch and the new age of DeFi (decentralized finance) has just started. Paypal, Venmo, CVS, 7 eleven and more are planning to offer the possibility to buy Bitcoin.

The above statistics suggest a move up in Bitcoin in mid July with perhaps a dip before. Statistics from from previous halvings suggest a move up a few months after the halving. If history repeats itself, the time to accumulate Bitcoins is in the next few weeks – months. While Bitcoin moves sideways altcoins are moving up.

Current allocation

42% of my total holdings are allocated to cryptocurrency. This is for my stockbroker account at Nordnet and excludes other accounts (Pension fund and others).

The plan is to have about 50%. It is still very early in the space. There is still a first mover advantage. I plan to add to Bitcoin, Ethereum and Litecoin if they dip within 2 weeks. Otherwise I will just buy Ethereum and Litecoin since they have higher potential short term. This is for my longterm holdings (1-2 years).

Cryptocurrency markets are extremely volatile and there is an increased risk. That said Bitcoin has the first mover advantage and the maximum total number of Bitcoins will always be 21 000 000. The adoption rate is steadily increasing. A Bitcoin movie is about to be made. It’s based on a book by Mezrich. His other best-selling book “The Accidental BIllionaire,” would serve as inspiration for the Oscar-winning film The Social Network. Perhaps the movie will coincide with the next Bitcoin top?

‘Bitcoin Billionaires’ Movie to Tell Winklevoss Bros’ Crypto Story.

Due to tax reasons I mainly hold cryptocurrencies through certificates. I only pay a small percentage (<0.1%) each year on my total holdings and not every time I sell (30%?).

I do not have stoploss in place since the prices can be very volatile. I believe that Bitcoin will be the new world currency in the future. In my other post the total market cap of Bitcoin and cryptocurrencies are compared to other assets and they are still very small.

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