History shows bitcoin halving is a bullish signal for crypto, author says

History shows bitcoin halving is a bullish signal for crypto, author says

Switching gears though it’s been quite a
wild ride for Bitcoin in 2024 we’re not
even halfway through the year yet we
just barely made it out of q1 here and
we’re Midway into Q2 so prices have been
on a tear as you’ve been seeing on this
chart year to date the late the largest
cryptocurrency up 50% year to date
thanks to demand for spot Bitcoin
exchange traded funds those ETFs and
that started trading in January and of
course most recently the once every
four-year having event that took place
last Friday keeping the supply of
Bitcoin limited and maintaining the
decentralized currency storage of value
so now where do crypto investors stand
and if you’re not an investor should you
be for more I’m joined by Eric Edelman
or Rick Edelman Rick Edelman joining us
here this morning great to see you Rick
digital assets Council of financial
professionals founder and the author of
the truth about crypto all right so a
lot of us are learning once again the
truth about the having and coming off of
that major event in a year of what’s
been major event on top of major event
with the ETFs that we had mentioned
earlier ago so now what does the future
hold what is the perspectiv now for
Bitcoin for the rest of
2024 good to be with you Brad as always
uh you know the the having drew a lot of
attention to what’s going on in the
world of crypto the the having is a once
every fouryear event uh affects only
Bitcoin that is the largest oldest most
popular best known coin so it gets a lot
of attention and people are excited
about it and understandably so but the
the having event in and of it itself is
just an ordinary element of how Bitcoin
operates so uh history tells us that in
the year following a having bitcoin’s
price has always risen dramatically now
we all know past performance doesn’t
guarantee the future but it has always
been Dem demonstrated to be a bullish
signal for crypto so there’s excitement
for that reason you cited the most
important reason though for why there’s
excitement and that is the launch of the
new ETFs the spot Bitcoin ETFs that
debuted in January that is the key
reason why there’s so much excitement
about what’s going on in the world of
Bitcoin these days so the having is now
behind us everyone’s excited that it
likely will generate higher prices over
the next year and the Bitcoin ETFs are
in the market now and that is generating
massive new inflows for investors and
that is causing a price spike as well so
a lot of bullishness for the world of
Bitcoin right now what is the
determining factor in whether or not
someone should be considering crypto for
their
portfolio two key criteria Brad number
one are you a long-term investor and
number two do you own a diversified
portfolio meaning if you are of the mind
that you want to own a little bit of
everything stocks bonds government
securities real estate oil gold foreign
assets Emerging Markets then crypto
belongs in that portfolio just like
everything else the whole point to a
diversified portfolio is to reduce your
risk rks don’t have all your eggs in one
basket you want to diversify so the more
you diversify the better off you’re
going to be from a risk perspective in
that context adding Bitcoin to your
portfolio even though Bitcoin itself is
risky the science tells us that adding
risky assets to the portfolio actually
lowers the overall risk of the portfolio
thanks to diversification so if you are
long-term and diversified you ought to
have a little bit of Bitcoin in your
asset allocation and then additionally
here as as we’re thinking about some of
the other ETFs that have also been filed
for where there could be some
significant kind of flow activity that
takes place ethereum and that’s set to
have its own kind of Shining Light over
the course of this year too is what
happened for Bitcoin that expected to be
the same for ethereum here very likely
uh there are a dozen or so applications
in front of the SEC right now to allow
for ethereum ETFs The General attitude
is that the SEC will say no in May to
those applications but everybody is
hopeful that the SEC will say yes by the
end of the year or certainly in early of
next year uh ethereum is the number two
asset and between Bitcoin and ethereum
they have about 90% of the total market
share of all of crypto out of tens of
thousands of coins those two are really
it they’re kind of like the C and Pepsi
of crypto so a lot of people are very
excited that ethereum is going to
eventually have its own set of ETFs
and uh there’s a lot of bullish for that
and for ethereum and some other coins
too and on the regulatory front if
anyone is adding crypto to their
portfolio what most notably could move
the dial one way or the other this
year uh we could see legislation
possibly in the area of stable coins and
this would be the first crypto
legislation ever and it would
demonstrate that Congress is recognizing
that this is a new legitimate asset
class it is a new technological
innovation that has legitimate place in
corporate Commerce and uh that’s all
very exciting so watch for what Congress
is doing there are a couple of bills in
the Senate right now that just might get
Advanced before the elections the other
thing is on the other side of that coin
the SEC continues to hate crypto Gary
Gensler the chair of the SEC is
continuing his enforcement activities he
continues to file lawsuits against
crypto companies continues to believe no
new regulation is necessary continues to
believe that there’s no Pro positive
place for crypto in the American
landscape and so if you were to see uh
that kind of activity continue that
could be perceived as bad news for uh
crypto at least here in the US all right
Rick just lastly while we have you it is
financial literacy month as well and so
we got to end with one key term that
people need to know uh from your radar
and surrounding Bitcoin here defi
decentralized Finance defi refers to the
fact that crypto works as a direct link
between two people two parties buyers
and sellers uh creators and uh receivers
and there’s no intermediary there’s no
third party in between you and me and as
a result blockchains are able to operate
faster and cheaper and safer 247 imagine
you doing stock transactions without a
broker in between you or getting a
mortgage without having a mortgage
company in between you this is why defi
decentralized Finance is a term need to
become familiar with Rick Edelman
digital assets Council of financial
professionals founder thanks so much for
taking the time here with us today Rick
good to see you you too Brad

Bitcoin (BTC-USD) is up over 50% year-to-date as the digital asset continues to garner attention, most recently with the ‘bitcoin halving’, in which the reward for bitcoin mining is cut in half. While some have labeled crypto as a volatile asset, could it still be worth it to add to one’s portfolio?
Digital Assets Council of Financial Professionals (DACFP) Founder Ric Edelman joins Wealth! to give insight into investing in crypto after the bitcoin halving event and what investors need to keep in mind when adding to their portfolios.

Edelman outlines his two key criteria for investing in bitcoin: “Number one, are you a long-term investor? And number two, do you own a diversified portfolio? Meaning if you are of the mind that you want to own a little bit of everything, stocks, bonds, government securities, real estate, oil, gold, foreign assets, emerging markets, then crypto belongs in that portfolio just like everything else. The whole point to a diversified portfolio is to reduce your risks. Don’t have all your eggs in one basket. You want to diversify. So the more you diversify, the better off you’re going to be from a risk perspective. ”

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