As announced, I took some more coins off the table and pulled out almost my entire investment, at USD 4,400. Crypto does not play a relevant role for me in my overall asset allocation, but I have probably had the most emotional experiences here. Back then, I got in at $ETH (+2.3%) when the 2021 bull market was in full swing. After entering the general bear market in 2022, I got to know the cycle theory, which saved me from selling when the book losses were at their greatest. No, I kept my savings plan running in order to keep adding to it and ignored the big red signs in my head. But now that the dry spell is long over, it's time to take something off the table again. I won't hit the top (or the low back then) anyway, which is why I'm gradually selling off. In posts last year, I went into detail about my strategy, including other cryptocurrencies, and listed where I saw my exit levels at the time and what the follow-up strategy is. Loyal readers know that in the current month or at the beginning of September I will update this again with a new article, also taking into account the GENIUS Act and what I am currently reinvesting my profits in (no, not crypto!). Since I stopped my savings plans in time, all the profit is tax-free, which makes the whole tax declaration nice and easy.
The limit orders for all cryptocurrencies are in the market and have been adjusted again, so now it's just a case of continuing to enjoy the rollercoaster ride and simply letting the automatic system take the profit. I certainly won't get the maximum gains, but I'm already well into the black with most of my remaining crypto holdings.
New holdings will then be accumulated from next year with savings plans and the money will no longer come out of my net salary, thanks to my "crypto succession strategy". As I said, many people know what this means. With $BTC (+0.61%) I am even considering no longer playing the cycle completely (or only partially) and switching to a HODL portfolio build-up. Of course, my distributing investments have absolute priority.
My biggest learning as an investor is that crypto is still where you can learn the most about how economies and monetary systems work. Not because $BTC (+0.61%) was once designed this way or that, intrinsic value theory or or, but because the $BTC (+0.61%) follows the money supply M2 with a time lag and a correlation of almost 90%. Once you have understood this and then look at other macroeconomic factors, you will also understand what Trump actually wants to achieve with his tariff war, why he had the red pencil applied with the D.O.G.E., why he has to get rid of FED chief Powell, why the GENIUS Act is an absolute stroke of genius, what this has to do with government bonds. And in the end, you can see that government debt is so overwhelming that economic output can no longer keep up and act as a counterforce. Take a look at this, also to understand why we are celebrating excesses on the stock markets and why purchasing power/wage increases (this is the game of money supply inflation vs. consumer price inflation) are no longer keeping up. Because no one on this planet will ever get rich with work, only with capital assets.
I wish you all a nice, sunny rest of the summer.
