Investor Kevin O’Leary says he is changing his crypto investments strategy in light of the continuing bear market in digital assets.
Kevin O’Leary Outlining His Crypto Investment Steps
The crypto investor plans to sell underwater crypto investments and invest most, if not all, of the proceeds in Bitcoin (BTC).
“Well, I’m doing what a lot of other traders are doing. I’m going into the November time period with over 34 different positions on, many of them underwater,” he said.
“So naturally, what I’m going to do, now that the IRS and other regulators around the world are now looking at crypto in terms of tax compensation very much like a security, I’m going to have to trade,” he added.
In addition, he explained that he would be doing trading, selling some of the projects that had been decimated by 40%, 50%, 60%, 70%, 80%, 90%, and basically buying Bitcoin, the granddaddy of all cryptos.
The Safest Bets is Investing in the Largest Market Caps
According to Kevin O’Leary, the crypto projects with the largest market caps are safest bets in a bear market – which means he may add more Ethereum (ETH) to his crypto investment portfolio.
According to his predictions, ETH layer-1 rival Solana (SOL) and Polygon (MATIC) will also be price-correlated.
He stated, “So I can go through the tax season owning more Bitcoin. I will. Maybe a little bit more Ethereum. But basically, the large market cap names are the ones that matter. So if you’re going to do a basket of names to hold through the back end of the year, I would say it’s going to be Bitcoin, Ethereum, Polygon, and Solana.”
“You know those are huge market cap names, and I think we are going to index together. I don’t think any one of those breaks out of the pack. They all kind of trade in tandem. So if you’re only going to own one, it’s probably going to be Bitcoin. But all the rest trade in tandem with Bitcoin anyways,” he explained.
At the time of writing, Bitcoin is valued at $19,060 according to CoinMarketCap.