Consider rotating capital from underperforming small-cap altcoins, as they have generally lagged major cryptocurrencies since late March. The primary strategy involves consolidating into Bitcoin (BTC), which has demonstrated significant relative strength and stability. Ethereum (ETH) is also recommended as a core holding, having outperformed the broader altcoin market recently. For additional large-cap exposure, Solana (SOL) is identified as a top-tier asset for potentially stronger returns. Benchmark your current holdings against BTC and ETH to assess their performance and decide if a rotation is necessary.

Low-Cap Altcoins (Market Cap < $300 Million)

• The speaker sold nearly all of his holdings in this category on March 20th.
• The core thesis is that smaller altcoins have been underperforming major cryptocurrencies like Bitcoin and Ethereum.
• The speaker uses the "OTHERS" index on TradingView (total crypto market cap excluding the top 10 coins) as a benchmark for this asset class.
• Analysis of the OTHERS/BTC and OTHERS/ETH charts shows that, on average, holding altcoins outside of the top 10 has resulted in lower returns compared to just holding Bitcoin or Ethereum since late March.

Takeaways

• The speaker suggests a strategy of rotating capital from underperforming, smaller-cap altcoins into larger, more established cryptocurrencies.
• Investors should benchmark their altcoin holdings against Bitcoin and Ethereum. The speaker poses the question: "Did your coin go up faster than Bitcoin over the past two months?" If the answer is no, he implies it may be worth reconsidering the position.

Bitcoin (BTC)

• The speaker used the funds from selling his low-cap altcoins to purchase more Bitcoin.
• He presents Bitcoin as a core holding that has not only kept his portfolio stable but has also outperformed the broader altcoin market.
• Since March 20th, holding Bitcoin has been a more profitable strategy than holding an average basket of altcoins outside of the top 10.

Takeaways

• Bitcoin is demonstrating relative strength in the current market.
• It is positioned as a safer, better-performing asset compared to the general altcoin market, making it a foundational piece of a crypto portfolio according to the speaker.

Ethereum (ETH)

• The speaker also bought more Ethereum after selling his smaller altcoins.
• He explicitly states that holding Ethereum versus an average of other altcoins outside the top 10 would have made you "more money" since March 20th.
• He cites a specific metric: the OTHERS/ETH chart ratio dropped from 0.98 to 0.92, which numerically demonstrates Ethereum's outperformance against smaller altcoins.

Takeaways

• Like Bitcoin, Ethereum is presented as a "blue-chip" crypto that has provided superior returns and relative safety compared to smaller altcoins recently.
• It is recommended as a core holding that has proven its strength in the current market cycle.

Solana (SOL)

• Solana was one of the three main assets the speaker bought, alongside Bitcoin and Ethereum.
• He groups SOL with BTC and ETH as the key assets that have helped his portfolio both stay "afloat" and "outperform."

Takeaways

• Solana is viewed as a top-tier cryptocurrency with strong performance.
• The speaker's actions imply a bullish sentiment on SOL, considering it a better holding than most smaller altcoins in the current market.

Beam (BEAM) & Amp (AMP)

• The speaker mentions purchasing "some beams, some amplifiers" as part of his portfolio rotation.
• Sentiment is bearish/negative. He immediately follows up by saying they "haven't run too much" and expresses regret over the purchase.
• He states he "really should have just stopped to buy Bitcoin, Ethereum, and Solana," implying these two specific altcoins were poor performers within his strategy.

Takeaways

• This serves as a cautionary note. Even within a broader strategy of consolidation, picking smaller altcoins carries risk.
• These specific assets, Beam and Amp, have underperformed the speaker's expectations and lagged behind the major cryptocurrencies he also purchased.