Crypto Winter and Portfolio Management Strategies

Crypto winter is here and it is important to rebalance your portfolios accordingly. You should be looking to get out of high-risk assets and move your liquidity over to less speculative and long-term stable projects. Always have cash on the sidelines and don’t overleverage into the markets. The federal reserve has still not made a pivot with interest rate hikes and continues to increase interest rates periodically throughout the year. They are effectively pulling liquidity from the market and causing every market to bleed. A combination of a slowing economy and a hawkish approach from the federal reserve means that you should expect more pain and downside action for the next 6-18 months. Remember that this is only temporary. A contractionary period in the economy is imminent and for those new to the game with cash on hand, this is the perfect opportunity to strike while everything is on discount. Volatility in the market is just another word for opportunity. If you aren’t already in, we have a pie chart listed below for how we feel is the best way for you to structure your portfolio moving forward during this economic downturn.

We think it's important to overleverage your portfolio with bitcoin as it is more than likely going to become a commodity in the not-so-distant future. The price currently at the time of the publication of this article sits around $20,300 which is approximately 70% from its all-time high. We feel this is one of the greatest buying opportunities of the decade. We will be accumulating Bitcoin heavily during the next 18 months through a monthly dollar-cost averaging (DCA) strategy. We know that Bitcoin runs in 4-year cycles and the next halving will be early in 2024. Every time bitcoin halves, there's a supply shock as the miners hoard the Bitcoin and take it out of the open market because there won’t be as much Bitcoin being rewarded to them. Each cycle halves the rewards emissions given to the miners who compete to verify transactions on each block utilizing computational power. We won’t give you a clear-cut price prediction on where we think Bitcoin will be after the next halving but if the previous cycles were any indication, we think it will definitely be higher than the current ATH (all time high). Every halving cycle to date has caused Bitcoin to smash passed its ATH from the previous bull market/post-halving cycle. The 2017/18 cycle capped Bitcoin off at approximately $20,000 and the most current cycle of the 2021/22 cycle capped Bitcoin off at approximately $68,000 so over a 3x from the previous cycle. Following the history and data, we do see the trajectory for the next bull/post halving cycle to top Bitcoin off anywhere from 150-200k. So we do think that it's the safest 7-10x investment in the world currently at a $20,000 bargain. As country adoption continues to increase and governments begin to acknowledge that it is the most delta-neutral monetary policy the world has ever seen, we expect adoption to only increase from here. People want complete sovereignty of their wealth and that isn’t going to change. The fiat money printing strategy of the federal reserve isn’t going to change either so we see more countries opting out of the legacy financial system following El Salvador’s lead. 

Moving forward we think it’s good to keep at least 10% of your crypto portfolio in stablecoins. 

Our preferred stablecoin choice is USDC as they are overcollateralized with fiat-backed liquidity which is a great sign of health. We suggest staying away from USDT as they are under investigation by the SEC and it is uncertain if they have the collateral to back their stablecoin or not. 

We suggest not putting too much percentage of your portfolio into altcoins but if you do, we suggest Cosmos and Cardano as they have both been around for over five years and they are both solving major issues in the crypto space in different ways. If you are a beginner we suggest checking out our FREE beginner's course and then working your way up to our advanced course here: 

We teach you everything you need to know to navigate through Cardano and Cosmos and how to earn passive income in these ecosystems leveraging Defi (decentralized finance) and staking. 

Last but not least we have microcaps. These are cryptocurrencies that have around a 300 million dollar market cap or less. They are extremely risky but the reward is so great if they succeed. These projects are the ones that end up giving you the best return on your money in a bull cycle if they survive the bear market. Currently, we feel your priority should be accumulating as much Bitcoin as possible, and then a few months before the Bitcoin halving, you should deploy more capital into the altcoin/microcap projects that survived the winter and continue to grow fundamentally. We won’t suggest some of the microcaps we are currently invested in but if you are interested in knowing, you can have access to our day-to-day investment strategies and market analysis in our membership group here:

We also offer access to venture capital and syndicate groups. We will guide you and help you get access to early-stage crypto projects before they hit the market. We hope that you found this blog article helpful and that you can utilize some of the strategies we have given you. 


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