One of the concerns is due to the recent increases seen which echo those of prior cycles which have not ended well. You can call it a behavioral reaction many call the "snake bite" effect but it feels off. When we see this "bubble-like" movements with many other markets which have left the rationality of traditional valuation models, it feels as if the upside is limited while risks remain.
I think that the asset class has been more defined as a risky asset class rather than a disruptor or innovative asset class. I say this as it seems that there has been more correlation to assets like risky stocks that other assets that are more safe havens. Like seen in the beginning of the Pandemic collapse, everything was sold in search of liquidity; even the ultimate safe haven by mosts, Gold. I fear that when (not if) the time comes for a reset, many cryptocurrencies will fall victim to the indiscriminate selling of assets.
I wish I could think of a solution but with an asset class still immature, the hedge opportunities seem limited although I am searching for them. I have thought about taking profits but as I have said many times, my timing is awful. I also have a long term belief in the value of the asset class as a hedge and more important a way to become more monetarily sovereign. Time will tell but my risk management hat is surely leading the way for me.
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Dude! Pool some of your coin, it is a way to hedge. There are a few platforms, but by pooling you tend to be selling when coin is on the way up and you buy as it is on way down. Or you could just go to stable coin and lend at a fixed APR.
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I have that high on my list and have been experimenting on some tokens. DeFi came too quickly for me to act with my portfolio but it is definitely where I intend to focus as I rebalance a bit.
I have a feeling all this hype form Influencers is going to wear off here in the next few days/ weeks and we could be in for a very heavy sell off with many people invested who didn't know better.
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Weak hands are growing in number but the fact that many whales will hold longer term may offer a base. The days of BTC below $20k are probably behind us!
It's good to be aware of the bubbles that always form, what worries me more is that at any time the gubment could make cryptos illegal and just let the banks and wallstreert only use it.
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I am sure they are huddled somewhere planning an attack to create FUD... That is how the 2018 bear market started. However, it will just add value to the longer term perspective of the asset class.