That’s how fast it can go: A few weeks ago, trading veteran Peter Brandt was bullish about Bitcoin. However, after the recent market downturn, he has changed his strategy, as he now explains.
25% Crypto? “This is crazy“
He looks back on over 40 years of experience as a commodity trader and is virtually the dinosaur among traders in the crypto community. Recently, he was very optimistic about Bitcoin’s future prospects – but now Peter L. Brandt says he has reduced his crypto holdings-and has mostly moved to cash.
Brandt in a new tweet to his more than 535,000 Twitter followers:
“Crypto once accounted for 5% of my invested capital, then it became 25%. This is crazy. I moved to cash for the most part, which became worrisome until the USDX started to rise last week.“
Thanks for the comment. This is a serious question I have been dealing with. Crypto was once 5% of my invested capital, then became 25%. That’s insane. I’ve gone largely to cash which became concerning until $USDX began advancing this past week.
– Peter Brandt (@PeterLBrandt) June 18, 2021
According to Brandt, the US Dollar Index (USDX) may be facing a big run (“possibly a very significant one”) – with potentially huge implications for portfolios, the trader said. According to Brandt, all assets, including cryptocurrencies, could see further losses as long as the US dollar sits on the throne. But, according to the American:
“Of course, royalty is always a temporary state, and kings can be dethroned in the blink of an eye.”
By this could be meant: As quickly as the downturn in the crypto markets has arisen, so quickly it could come back to an upswing (here you can read what analysts say about the current state of the crypto markets).
Bitcoin as a ” measure of wealth“
Brandt as an experienced trader is not a hodler, he adapts his portfolio flexibly to the circumstances of the markets. At the end of March, a few weeks ago, the chart guru was still so bullish that he no longer measured his assets in dollars-but in Bitcoin. That’s how much BTC has changed the way we think, Brandt explained in an interview:
“My mindset has really changed. […] I really look at it quite differently, because if my goal as a trader was to accumulate more US dollars, then now that tells me that I had the wrong goal, because my goal was to accumulate the weakest asset in the world, the most depreciating asset in the world, and that is the US dollar.“
His perception has changed completely within the last year: away from “Bitcoin as a trade” – to “Bitcoin as a measure of wealth”. Brandt did not sound at all as if he would shift his fortune into cash all too soon:
“Bitcoin is the place where I want to have all my assets at some point.“
True, his recent comments no longer sound so unambiguous. But he also does not turn his back on the crypto markets. Brandt insurance: He still owns Bitcoin-and holds back capital to get back in. The popular Analyst:
“Full disclosure: I have a considerable allocation available to own BTC. 20% of this allocation currently holds BTC as an insurance policy against the historical trend of fiat devaluation. But I am also currently long USD via futures contracts.“
Bitcoin as an insurance policy, then. Maybe it’s only a matter of time before Brandt starts up his BTC allocation again.
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