Ben Simpson (YouTube) gives an investing view: if investing $50,000 today he'd allocate primarily to Bitcoin with selective exposure to layer-1 altcoins. He argues institutions (e.g., MicroStrategy, ETF issuers) are currently driving crypto — not retail — so most altcoins and small caps remain unloved; retail-driven rotations that historically lifted altcoins are expected later, likely next year. He cites macro drivers (M2/money supply and global liquidity) as supporting Bitcoin's lead.
Chapters
If I was investing $50,000 today, where would I get the best return in my opinion in the market? Well, right now, if you look through the noise, altcoins are not performing. There's very select few altcoins that are actually doing well. I believe bitcoin is going to lead the market and bring the altcoin sector up over the coming weeks. I would not be going into a higher percentage volatile altcoin portfolio based on the fact that we have not seen the same retail exposure that we've seen in previous cycles. Crypto right now is primarily being led by the institutions like MicroStrategy, like ETF issuers that are consuming a huge amount of bitcoin that is leading the market. Previous cycles retail have led the market and that's what pushed the altcoins higher. Where I believe the portfolio right now, if I was to invest $50,000 would be primarily bitcoin and then I'd be looking at the altcoins like the layer one sectors that we've been really hot on. I shared a lot of those coins. I believe the layer 1 sectors are going to lead the market. Then it'll bring those lower cap altcoins up. But I don't believe that's going to be until next year. Ultimately you need to make sure the portfolio allocation is right. Bitcoin gets all time highs, then it gets the old coin exposure because a retailer invested money rotates down and that's when the old coins follow. But for now, Bitcoin is following M2, money supply and global liquidity. Altcoins are not being touched because there's no retail investors buy them. That's going to come later down the line. So for now, heavy bitcoin with layer one exposure, that's how I invest right now.
