So at what point do all you bitcoin owners feel the need to rebalance your portfolio as bitcoin continues to climb? Most investors are only comfortable putting a certain percentage of total portfolio into crypto. Obviously, as bitcoin continues to increase significantly in price, the distribution of your portfolio starts to become more weighted in bitcoin. Do you sell some off to lock in gains and rebalance or enjoy the ride up?
Ride it up. If Bitcoin doubled in price tomorrow to 35k (and my percent allocation in my portfolio therefore spiked as well), I would still be certain that Bitcoin would provide better returns than nearly any other financial instrument in the medium/long term.
I may sell some at some point in the future, but that will be a response to predicted price action due to euphoric market mania, rather than a desire to decrease my percent exposure. Put another way, if my exposure was 99% today at $17k, I would keep it there because I know a golden bull run is coming. If my exposure was 20% at $250k with signs of a top imminent, I would sell some for cash.
