Bitcoin Breaks All-Time High — But Is It Too Late to Buy?
Hey friends,
Earlier this week, Bitcoin reached a new all-time high surpassing US $126,000 or AU $190,000!
That’s more than 20% higher than just a few months ago, this rally has been fuelled by institutional inflows, the demand for Bitcoin ETF and the expectation for further rate cuts by the Federal Reserve.
With Bitcoin’s upward trend showing no signs of slowing, the big question is whether investors should ride the wave or wait for the next dip.
And if you haven’t dipped your toes into Bitcoin yet you might be wondering “is it too late to buy”
Unfortunately no such crystal ball exists. But there are a few strategies you can consider depending on your goals and risk appetite.
💭 Why Invest in Crypto (and How Much?)
People buy crypto for different reasons, some see it as a hedge against inflation, others as a bet on emerging technology, or simply a way to diversify their portfolio.
But it’s worth remembering that crypto remains a high-volatility asset. Most experts suggest keeping it as a small satellite position rather than a core holding.
📊 One study found that an allocation of around 3% to cryptocurrency can enhance portfolio performance without meaningfully increasing downside risk.
Due to how much crypto has rallied over the past year, my currently allocation to cryptocurrency is slightly higher than that at the moment!
Personally, my mindset is simple: I only invest an amount I’d be comfortable seeing go to zero. If crypto disappeared tomorrow, my financial life wouldn’t change, and that’s how it should be for any speculative investment.
💡 How I’m Approaching This Rally
For me, the plan hasn’t changed. I’m still dollar-cost averaging into Bitcoin, buying small, consistent amounts each month, regardless of price.
It’s a strategy that takes emotion out of the equation and helps smooth out volatility over time.
But I’m also riding the current momentum a little. When Bitcoin is showing strong upward trends, I’ll allow myself a slightly higher allocation of crypto within my overall portfolio.
⚡ Other Options to Consider
Taking Some Profits Off the Table
If Bitcoin now makes up a big chunk of your portfolio, trimming a bit can lock in gains and de-risk your position. Think of it as the reverse of dollar-cost averaging, yes you will need to pay capital gains tax but sometimes it’s better to lock in profit and just play with house money.
Doing Absolutely Nothing
Honestly, sometimes the smartest play is to just do nothing. Bitcoin dropped 30% between January and April, only to finish 20% up year-to-date.
💡 Question for you
Do you guys currently hold any cryptocurrency in your portfolios, and if so what allocation do you have?
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