Can Bitcoin 'Pandemic Proof' Your Portfolio?

By Dr. Bruce Ng and Juan M. Villaverde On December 21, 202003:00 PM Eastern
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Global equities are in the red today as fresh coronavirus fears overwhelmed news of a stimulus deal in the United States.

Bitcoin (BTC, Tech/Adoption Grade “A-”) has registered new all-time highs within the last 24 hours on multiple cryptocurrency exchanges, including coinmarketcap.com, coinbase.com and coindesk.com. But price action in recent hours reflects a certain amount of short-term fear.

Indeed, the U.K. is on total, complete lockdown and Germany, France, Italy, Canada, Israel, the Netherlands and Belgium have announced bans on passenger air travel from there due to the emergence of a “highly infectious” new strain of COVID-19 on the island country.

Folks across the pond are also rightly concerned about short-term food supplies. It’s getting perilously close to “hand-to-mouth” in parts of the developed world.

Still, the world’s first and biggest cryptocurrency is above $23,000 at this hour and is up more than 20% over the last seven days.

As we noted on Friday, “Don’t be surprised if we see a small correction soon, as our timing model suggests we may see a brief pullback before the long-term crypto bull-market resumes.”

Still, as we also noted on Friday, “Fundamentals continue to strengthen, and short-term dips are welcome buying opportunities.”

Looks like we’re “in rhythm” with the market right now. And that’s cool. But the most important thing about this Bitcoin surge is what it means for other crypto assets, such as Ethereum (ETH, Tech/Adoption Grade “A-”).

As butterz.eth.btc.link noted in reply to our “6:00 AM” tweet, “More people are ‘using’ $BTC now but they’re wrapping the $BTC to run on $ETH.”

Indeed…

There’s a lot out there to spook old-school markets from one day to the next, whether it’s “too little” or “too much” stimulus from the U.S. federal government or the trajectory of vaccine uptake and effectiveness across the world.

At the same time, a new paradigm is emerging from this chaos. Now is a very good time to start participating in crypto as it’s no longer just a “new frontier” but, increasingly, a viable alternative for stability amid a more and more mixed-up world.

Best,

Juan and Bruce

Dr. Bruce Ng
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About the Contributor

Dr. Bruce Ng is a literal rocket scientist who was among the first to write about DeFi. Today he applies the same mathematics and scientific methods to the crypto space to discover the world’s most promising, and potentially most profitable, altcoins.

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