Bitcoin Is Shaky But BTC Indispensable In Investment Portfolios

Dalmas Ngetich

1 year ago

3 mins read

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Bitcoin (BTC) is up 14.6 percent
Cryptocurrencies have a role to play in investment portfolios

Despite skepticism, Bitcoin and cryptocurrencies are increasingly becoming part of investment portfolios. That’s notwithstanding their wild price fluctuations. At the time of writing, BTC is up 14.6 percent week-to-date.

Bitcoin Price Analysis

Fundamentals

There are diverse opinions as far as what Bitcoin is. Generally, there is a consensus that BTC is first a medium of exchange and a settlement layer. However, its price volatility is bogging its progress toward its quest of being a global settlement layer. High net worth investors are particularly wary of this price instability.

Ultimately, the above-average rate of returns over the last decade is proving attractive, a bait. Even so, some analysts are cautious of Bitcoin, questioning whether the digital asset deserves a slot in modern-day investment portfolios.

Barry Silbert, who is the CEO of DCG Co, the parent company of Genesis Trading and CoinDesk quotes Matthew Bartolini. In his own right, Matthew is respected but is nonetheless critical of Bitcoin. Questioning Bitcoin, he says, “Cryptocurrencies have no role to play in investment portfolios.”

However, his view is against recent research findings from Yale University as well as a Twitter survey indicating that retail investors are pouring their life saving to cryptocurrencies and especially altcoins. Besides the high return on investment, cryptocurrencies like Bitcoin are useful as a diversifying asset. According to Mark Yusko, a renowned Wall Street Fund manager:

“Bitcoin is the best [portfolio] diversifying asset. It has a very low correlation and should be in everyone’s portfolio. Bitcoin is a better bet than stocks.”

Candlestick Arrangement

Currently, BTC bulls are in the driving seat, but their control is shaky. Because it is up 14.6 percent in the last week, there is a chance that prices will rally to $15,000. All the same, for this preview to be valid, then it is preferably that bulls first clear the June 2019 high.

Once prices surge past $14,000 with a distinctive break out candlestick that is not only wide-ranging but propped by high participation, bulls can freely buy the dips while aiming at $15,000. Before then, today’s indecision could spell doom for traders. Note that the lack of comprehensive reversal of June 26 losses exacerbated by shrinking volumes mean bears have an advantage from an effort versus result point of view.

Then again, the lack of a definitive trend in the last few days means prices may slump to $9,500 in a retest. If after that there is a recovery, odds are BTC will bounce back to $14,000 and later $15,000. On the other hand, losses below this support could see BTC slide to $7,500 and even to $5,500.

Technical Indicators

From above, June 27 candlestick is significant. Nonetheless, trend continuation depends on whether the break out bar has high trading volumes exceeding 82k of June 26. Any surge or meltdown above $14,000 or below $9,500 with high participation surpassing 82k will define BTC’s short to medium term price trajectory.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.