Bitcoin Holds Less Than $ 50,000, Traders Share Alternative Crypto Games

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Cryptocurrencies were under scrutiny as the Federal Reserve kicked off its two-day meeting on Tuesday.

The potential end of a stimulus monetary policy has cast a veil over space in recent months.

Bitcoin rallied on Tuesday, but remains below the psychologically important $ 50,000 bar and well below its nearer $ 70,000 highs set in November.

CNBC’s “Trading Nation” asked its traders how they are positioning their portfolios to gain better exposure to the crypto space by 2022.

“I would buy now,” said Mark Tepper, president of Strategic Wealth Partners on Tuesday. “I believe in crypto a lot, I own it, but I’m also a realist. And I think if you want to be successful at owning or trading crypto… you own it in a percentage that allows you to sleep at night. “

For Tepper, that equates to roughly 10% of his liquid net worth, an amount he says makes him feel comfortable if he loses everything, but “elated” if he multiplies tenfold.

“I think you have to understand that crypto has skyrocketed from the depths of Covid because of all this new cash that has flooded the system, all of this [stimulus] checks. It’s no longer a catalyst, so the gains in the future will be much, much slower, ”Tepper said.

In an email to CNBC, Tepper noted that he was allocating 50% of his cryptocurrency position to Ethereum, 40% to Bitcoin, and 10% to a lesser-known crypto, polkadot.

“100% of my new crypto money right now is going to the polkadot. Not many people have heard of it, ”he said. “The founder of [the platform] Polkadot was also co-founder of Ethereum … He basically took technology from Ethereum and improved it. So that’s where my money is going right now. “

Todd Gordon, founder of Inside Edge Capital Management, says the recent weakness in cryptocurrencies is likely related to a sell off of technology and less liquidity in the system. However, he sees the adoption of crypto among older investors and institutional investors as a big advantage that should compensate for this kind of slowdown.

Like Tepper, Gordon is bullish on the space and has 3% cryptocurrency exposure in his portfolio – which is made up of 56% bitcoin, 35% ether, 5% solana, and 3% cardano.

“If you want to find a good way to maybe see the difference between ethereum and bitcoin – that’s an old currency trick – you look at cross rates, you look at ethereum against bitcoin, you take the dollar out of it,” he said. Gordon said in the same interview.

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Ethereum versus bitcoin has weakened but has recently found support at current levels. If he can maintain that level of support, Gordon sees the potential to add to his position in Ethereum.

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