What strategies to protect portfolio if BTC drops to $35k
Diversify, hedge, and dollar-cost average to shield your portfolio from a BTC drop to $35k while staying positioned for rebounds. These strategies draw from proven bear market plays amid 2026 volatility.
Core Allocation Rules
Limit BTC to 20-40% of portfolio; shift excess to stablecoins like USDT/USDC or gold/silver for your precious metals interest.
Rebalance quarterly to target weights, selling BTC highs and buying dips systematically.
Self-custody holdings to cut exchange risks during crashes.
Hedging Tactics
Use inverse ETFs like BITI or ProShares Short Bitcoin to offset spot BTC losses—expect 20-25% gains if BTC falls 20%.
For advanced plays, short futures on Binance or buy put options on ETH/BTC pairs.
Consider downside-protected BTC ETFs like Calamos CBOJ for 100% principal buffer over one-year periods, capping upside but minimizing drawdowns.
Opportunistic Buying
Hold 20-30% cash/stablecoins for laddered DCA into BTC below $60k, spreading buys over weeks to avoid catching knives.
Stake alts like SOL/ETH (4-8% APY) or lend stables on Aave for yield during the dip.
Monitor NUPL for capitulation signals before going heavy.
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