Veteran trader Peter Brandt has recommended investors diversify their portfolios by allocating funds to Bitcoin alongside traditional assets like S&P 500 and Nasdaq 100 ETFs. This advice comes as Bitcoin approaches a potential new all-time high, with Brandt emphasizing caution due to inherent market volatility, particularly amid ongoing geopolitical tensions.
Bitcoin has significantly outperformed major indices year-to-date, posting a 15% gain compared to the S&P 500’s 2.80% and the Nasdaq 100’s 4.59%. This surge is attributed to growing institutional confidence and supportive regulatory policies.
Despite the bullish momentum, Brandt warns of a potential parabolic top formation for Bitcoin, a pattern historically followed by substantial price corrections. This caution persists even as current on-chain metrics remain positive and short-term holders report profitability.
Institutional interest in Bitcoin continues to rise, fueled by increasing regulatory clarity and endorsements. The Trump administration has notably encouraged corporate adoption of cryptocurrencies.
The Federal Open Market Committee (FOMC) is widely expected to maintain current interest rates, providing a stable backdrop for risk assets, including Bitcoin. Traders are advised to remain vigilant, closely monitoring key technical resistance levels.