Hello Mathieu. Yes, Bitcoin is highly correlated with other cryptocurrencies when it comes to the price, but when I’m talking about diversification I’m taking into account other kinds of risk. Currency may become problematic not because of its price being low, but because of technical shortcomings, team problems and other possible issues which are not indicated in its price yet.

And when it comes to the unfounded optimism, of course you can’t know for sure that the market will go up. But that’s what every investment and trading strategy is based upon: Uncertainty and Probability Theory.

If you do not believe that the market will go up, you can sell your funds for cash.

Or you can short it. I’ll describe this strategy soon, in my next article.