I finally bought some Bitcoin as part of an overall diversification strategy. I've been hesitant to buy for years because it feels like a bubble, given there's no physical value or income stream, unlike any other investment out there. However, its correlation to overall financial liquidity, it seems wise to have a small portion as a hedge.
Nonetheless, I decided to assess the Elliot Wave count since 2011 when Bitcoin first started trading. It has followed a picture perfect 5-wave rally, with each wave subdividing nicely into 5-waves. While this is a bullish configuration in the long-term picture (on the scale of decades), a 5-wave rally is followed by a multi year correction period, which can often dip as low as the prior wave-4 low.
So even if the momentum of the election rally takes us to $100k or higher, it wouldn't surprise me to see a dip back to $15k over the coming years. Either way, it won't really affect my portfolio in a significant way.
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