This Self-Proclaimed Bitcoin Maximalist has Paper Hands
Nick Maggiulli, who sold half of his BTC holdings i.e 0.5 BTC, is planning to buy when the price “drops significantly.” Earlier this year, he recommended a 2% portfolio in BTC so that “you’re unlikely to get rich, but you’re unlikely to go bankrupt either.”
Nick Maggiulli, the creator of ‘Of Dollars And Data’ took to Twitter to share that he has sold half of his Bitcoin holdings at a price of $52,000.
Today, Bitcoin nearly breached $53,000, up 77% YTD.
The COO at Ritholtz Wealth Management which has nearly $2 billion in assets under management further shared that half of his Bitcoin holdings were sold for US dollars, which he called some “rebalancing.” He shared his reasoning behind the decision saying,
“And for the record, my “paper hands” smell like USD. You know that thing you use to pay your mortgage, buy food, and for just about everything else.”
Of course, Crypto Twitter (CT) jumped in because weak hands aren’t really praised here. Anthony Pompliano who recently said BTC could hit $500,000 by the end of this decade and ultimately a million dollars commented,
“You sold an appreciating asset for a depreciating asset while taking a tax hit along the way. Bitcoin isn't an investment. It is the reserve currency.”
What’s the Plan?
While answering the questions regarding his move on Twitter, Maggiuilli revealed that he had 1 BTC and after selling, is only left with 0.5 BTC.
As for his entry-level, it was $8k. The last time the price of Bitcoin was at this level was in early May. Since then, the leading cryptocurrency has appreciated more than 550% in value.
It was earlier this year when Maggiulli admitted being “wrong” about Bitcoin in his blog post on ‘Of Dollars And Data.’
At the time he said, he came to the realization that he is wrong about Bitcoin and that it can't be a legitimate asset class when it crossed the previous ATH $20k. He then recommended investing only 2% of your portfolio in Bitcoin, so that “you’re unlikely to get rich, but you’re unlikely to go bankrupt either.”
This time as well, his strategy is not to sell his other half of holdings and keep at least 2% in the portfolio on a go-forward basis. “Was too much of my portfolio (outside tolerance band). Not bullish or bearish,” he added.
He is also planning to buy more if the price of the Bitcoin “drops significantly.”
“Lol = The idea that you can “time the dip” or that $50k is “taking profits” in the early stages of a bull run,” commented Dan Held, director of business development at crypto exchange Kraken.
As for investing in other cryptocurrencies like Ether, which continues to outperform Bitcoin, like always, “Nope. I am a BTC maximalist,” is Maggiulli’s response.