Recently, Ari Paul, Chief Investment Officer (CIO) and Managing Partner at crypto investment firm BlockTower Capital, shared his latest thoughts on Bitcoin.
BlockTower, a leading crypto hedge fund based in Stamford, Connecticut, was founded in August 2017 by Matthew Goetz, a former vice president at Goldman Sachs (where he spent eleven years), and Ari Paul, a former risk specialist and portfolio manager at the University of Chicago’s endowment investment office and a derivatives trader at Susquehanna International Group.
Back in December, during an interview with former hedge fund manager Raoul Pal, Paul offered this advice for investors in Bitcoin:
“If I’m even close to right, it will be difficult to beat a buy and hold strategy through the end of this bull run. For active traders, it’s certainly possible to add lots of alpha with timing and rotation, but the opportunity cost of mistakes is high.“
Then, on February 4, Paul said that this current bull rally could go on for another 9-22 months:
And yesterday, Paul said he warned investors to be prepared for a lot of volatility during this bull cycle.
Here are some of the health and psychology tips offered by Paul:
- “Go all-in mentally. This *is* an incredible opportunity. But…pace yourself. This is a marathon, not a sprint. Maintain your health, good sleep and dietary habits when possible, and your sanity.“
- “Stay grounded. Hang out with non-crypto people, friends, family etc. Go for a hike, go camping, get away from screens on occasion. Read a book. Meditate. Do things that bring your cortisol and adrenaline levels down.“
- “Perhaps most importantly, don’t blow up. It’s amazing how many people end bull runs with less money than they started. The easiest ways to blow up: FOMO’ing in to positions after they’ve outperformed with big chunks of your portfolio, leverage, and shorting.“
Finally, as for when investors should consider selling in order to take some profits, he said:
“A reasonable approach is to very gradually scale out of positions on the way up. For example, you could sell 20% every 2x. Not optimal, but will likely result in a fine outcome with less stress.“