While all eyes on Bitcoin and global markets were focused on the FED's January interest rate decision, an end-of-month report came from Markus Thielen, the founder of corporate cryptocurrency research company 10x Research.
At this point, Thielen, who announced his end-of-month evaluations for BTC and altcoins, said that investors should balance their cryptocurrency portfolios next month.
The analyst, who correctly predicted that Bitcoin would fall to $ 38,000, recommended RIA, asset managers and medium and long-term crypto investors to rebalance their portfolios for the next month.
Stating that for an ideally balanced portfolio, each token should be limited to 20%, Markus Thielen explained what the maximum proportions of Bitcoin and altcoins in the portfolio should be.
Accordingly, the weighted rates after January are 20% for Bitcoin and Ethereum; 9.3% for BNB; 9.2% for Solana; 7.9% for XRP; 7.2% for Cardano; 6.8% for Avalanche; 6.6% for Tron; He said it was set at 6.5% for Chainlink and 6.5% for Polkadot.
“Our Top 10 Ecosystem portfolio (targeted at RIAs, Asset Managers and other mid- and long-term crypto investors) is rebalanced on the last day of each month.
From now on, the weighting ratio is 20% for Bitcoin and Ethereum, 9.3% for BNB; 9.2% for Solana; 7.9% for XRP; 7.2% for Cardano; 6.8% for Avalanche; 6.6% for Tron; It was determined as 6.5% for Chainlink and 6.5% for Polkadot.
The portfolio rebalances monthly, capping each token at 20% and removing memes and stablecoins.
This diversified strategy has performed similar to Bitcoin's returns over the last 12 months. “Bitcoin has gained over 150% in value in the last 12 months.”
Speaking about the altcoin rally, Thielen said that unless Bitcoin dominance consistently falls below 50%, it is too early to expect a sustainable altcoin rally.
Finally, the analyst, who shared his analysis of the Bitcoin price, pointed out that his $ 50,000 target is valid and argued that the BTC price will continue to consolidate a little before starting to rise towards $ 50,000.
Stating that at this point there is a small resistance in the range of $ 43,000-44,000, Thielen advised investors to buy Bitcoin above $ 43,000 despite this resistance.
“Although we expect the $43,000-$44,000 level to be a minor resistance for Bitcoin, we recommend investors buy BTC above $43,000.
Because we expect Bitcoin to continue its upward trend over the next two months and rise towards the 50,000 level. “The risk asset environment remains supportive and with interest rate cuts on the horizon, we expect all asset prices to be higher in 2024.”
Just because an analyst predicts a fall or rise, or knows a decline in his previous forecast, does not mean that Bitcoin will fall or rise again. Although the report includes some altcoins and the maximum rates that should be included in the portfolio, do not make your investment decisions based on a single data or report. These reports are helpful data that are not accurate, have a margin of error, and have never been proven to be 100% accurate.
Make your investment decisions based on your own research.
*This is not investment advice.