Crossover Capital

As of yesterday’s closing bell, over the last 180 days, all three major indexes are up (h/t on X). Yes, you’re reading (and seeing) that right. While market volatility has been higher over the past few weeks, overreacting during these times is one of the biggest errors we see investors make.

Being hyperfocused on shorter time horizons is a mistake. In the past, we’ve seen investors be overly risky at the portfolio level when things are going well, and then pull all of their funds and sit on the sidelines when things are not going so well.

Now is a good time to re-evaluate your risk number – https://pro.riskalyze.com/embed/4ec0dc87ebc8efeea3cf – to ensure that your portfolio is aligned with what you’re willing to tolerate.

Yesterday, the Bitcoin Fear & Greed Index hit a level not seen since FTX’s collapse in 2022.

Alex P**n shared this tweet in an email newsletter sent on December 12, 2024.

“I believed then – and still believe now – that these charts are so important. A bitcoin bull market may seem like a no-brainer, but historically that hasn’t been the case. In 2016 and 2017, bitcoin investors experienced six different drawdowns of 35% or more.

In my opinion, investing in bitcoin takes conviction that’s built on a deep understanding of financial systems, macroeconomics, modern portfolio theory, behavioral finance, time preference, the history of money, thermodynamics, statistics, and politics.

If you’ve spent some time studying these things and how they apply to bitcoin, you’re much less likely to be shaken out of your deep-rooted conviction.

If you haven’t studied these things and you’re investing in bitcoin with the goal of making a quick buck, it will probably be difficult for you to be at peace with your investment decision-making, especially during a pullback like this.”

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It’s a question that currently depends on a host of factors and nuances…

We explore all of these factors for bitcoin, ethereum, altcoins, and NFTs in our new article here: https://crosscapadvisors.com/are-bitcoin-and-other-digital-assets-considered-securities/