Bitcoin Bull Fred Krueger Says Long-Term BTC Wealth Requires HODLing, Taking 'The Pain'

Fred Krueger, former Wall Street trader and Bitcoin enthusiast, said Tuesday that building long-term BTC wealth requires HODLing through drawdowns and taking “the pain.”

Krueger Critiques BTC Portfolio Rebalancing

In an X post, Krueger referenced the Kelly Criterion method—a popular strategy used to determine the appropriate position size for an investment—which suggests that one should be 70% invested in Bitcoin.

He argued that those who rebalanced their Bitcoin investments when the price was between $110,000 and $120,000 are now facing unrealized losses.

“If you are using a 1-yr rebalancing, it’s unclear if they will ever be buying back lower,” Kreuger said, expecting Bitcoin to trend higher.

‘Take The Pain’ And HODL Bitcoin, Says Krueger

Kreuger criticized those who never had any exposure to Bitcoin and are now cheering for its value to drop to feel better about missing out.

“It’s very unlikely that any significant amount of Bitcoin will ever be transferred to this cohort,” he said. “The only way to rack of significant long-term Bitcoin is to HODL and take the pain.”

When asked if they are still adding to their BTC position, Krugere replied, “Always.”

Kreuger’s HODLing suggestion comes at a time when Bitcoin is headed for a fifth straight monthly decline — its worst losing streak in eight years. The apex cryptocurrency is also on track for its steepest monthly drop since June 2022, currently trading 48% off its October peaks.

Wall Street analyst Tom Lee said last week that the ongoing “cryptocurrency winter” is nearing its end, and Bitcoin and Ethereum are close to hitting their lows. Widely followed crypto analyst Ali Martinez, however, predicted "the final leg down" for Bitcoin's cycle, potentially dragging it 30% from current levels

Price Action: At the time of writing, BTC was exchanging hands at $65,020, up 3.17% over the last 24 hours, according to data from Benzinga Pro.

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