First of all, I want to thank you for all the great content. From all of the crypto youtube channels (and god are there many), I keep coming back for yours - I find your understanding of the field broad, genuine and overall trustworthy. So keep up the great work!
I wanted to ask you a question about a Rebalancing strategy - do you use it on your crypto portfolio, and would you recommend it? If you do use it, do you compare your relative portions of the portfolio to fiat or to BTC value and what is better?
Another question is related to the last one. From what I generally notice- Bitcoin value and different altcoins value, alternate in growing/depreciating. My hypothesis is that once Bitcoin is consolidating or dipping, new money is waiting on the sidelines. Once that new money decides to buy the dip, day traders and others want to capitalize on that uptrend and move some of their altcoins value back to BTC, then - after a few days when the BTC price stabilizes again, the new buyers want to diversify and buy altcoins thus creating the other trend. I don't know if that sounds reasonable at all or not, but for me it makes sense and I want to hear your thoughts about it. If it is true it means that a rebalancing strategy can be a smart idea since it will always capitalize on the asset which is growing. Would love to get your two cents on the matter.
I don't rebalance generally unless the opportunity is (in my opinion) large enough to warrant realizing capital gains. I tend to believe Bitcoin does better than alts when it is moving rapidly in either direction. Consolidation is what kills Bitcoin's dominance. If we see another bull run like we did in beginning of December, I suspect we will see as you expect (altcoins moving to Bitcoin). But I also think the opposite is true too: If we see a bear run for Bitcoin, then I also think altcoins will flee to Bitcoin.