What does a “best” crypto portfolio look like when a new cycle is just beginning to take shape? In a recent video titled “The BEST Crypto Portfolio for 2024 (Complete Breakdown),” Dennis from the Virtual Bacon channel lays out a structured approach to building one for the year ahead-balancing conviction with catalysts, and fundamentals with narrative.
The video frames 2024 as a pivotal moment: potential approval of a Bitcoin spot ETF, the next Bitcoin halving in April, and a shift in U.S. monetary policy toward easing later in the year. Together, these forces could reawaken risk appetite-and, according to Dennis, make early accumulation of select altcoins more compelling than waiting on the sidelines. Importantly, he argues that winners from the last cycle won’t necessarily lead the next, so the emphasis shifts to both established names and under-the-radar projects poised to capture mindshare.
To decide what makes the cut, Dennis uses four clear filters: whether a project sits in a narrative likely to see renewed hype, whether the team is actively shipping and motivated, whether the project is a sector leader growing its dominance, and whether its fully diluted valuation leaves room for meaningful upside-targeting at least a 10x in an ideal scenario. In this post, we unpack his complete breakdown-why these narratives, why these projects, and how he allocates across them-so you can understand the thesis behind a 2024-ready crypto portfolio.
Catalysts driving the new crypto cycle and how to position before they arrive
The next leg up is being primed by three clear market sparks: a likely Bitcoin spot ETF approval in January 2024 (opening the door for institutional flows), the Bitcoin halving in April 2024 (historically the ignition point for the 4‑year cycle), and a potential Fed pause → easing by late 2024 (risk assets back in favor). Combined with constructive late‑2023 price action, these set the stage for accumulation before headlines hit. Use the window to get positioned while the crowd is still second‑guessing.
| Catalyst | When | Impact | Positioning Move |
|---|---|---|---|
| BTC Spot ETF | Jan 2024 | Institutional inflows | Accumulate BTC + liquid majors early |
| BTC Halving | Apr 2024 | Cycle kick‑off | Scale into high‑conviction alt leaders |
| Fed Easing | Late 2024 | Risk‑on tailwind | Let winners run; prune laggards |
Positioning now favors a selective, thesis‑driven build rather than waiting for lower prints. Prioritize projects in narratives likely to reignite, with teams still shipping, sector leadership (or clear path to it), and valuation room for at least a 10x in ideal conditions. Keep in mind that last cycle’s stars may not lead again-capital rotates to fresh stories. Consider this checklist while allocating:
- Accumulate early: enter before the ETF/halving headlines; favor liquidity for quick rebalancing.
- Back builders: visible progress, motivated teams, growing dominance in their niche.
- Chase narratives, not nostalgia: prefer emerging themes over stale winners.
- Respect FDV: avoid bloated fully diluted valuations; seek asymmetry with realistic upside.
- Barbell approach: core in BTC/majors for flow capture; satellites in undervalued alt “gems.”
Build a balanced portfolio with a core in bitcoin and ethereum and rotate into fresh narratives such as AI DePIN real world assets gaming and layer two scaling while avoiding last cycle favorites that lack new catalysts
Anchor your portfolio with Bitcoin and Ethereum as the dependable base, then treat the rest as a flexible sleeve you can rotate into emerging narratives as they heat up. The core benefits from 2024’s macro tailwinds-spot ETF flows, the Bitcoin halving, and a likely shift toward easier monetary policy-while the satellite sleeve hunts asymmetric upside. Be selective: coins that led the last cycle often stall without fresh catalysts. Focus on projects sitting in narratives primed to capture attention early, and apply strict filters to avoid dead weight.
- Narrative heat: is this sector likely to see hype in the new cycle?
- Team momentum: are builders shipping and visibly motivated?
- Category leadership: is dominance growing, not shrinking?
- Valuation headroom: does the FDV still allow room for a meaningful multiple?
Use a core-and-rotation design: keep your base in BTC/ETH, then rotate tactically into fresh stories like AI, DePIN, Real-World Assets, Gaming, and Layer-2 scaling as new catalysts arrive. Reassess each position regularly-upgrading into leaders that are gaining mindshare and cutting last cycle favorites that lack progress. In practice, watch for early signs of traction, and remember that narrative leadership can change quickly during a bull run.
- AI: early revenue, agent/tools adoption, compute partnerships.
- DePIN: real usage (nodes/sensors), sustainable incentives, coverage growth.
- RWA: tokenized yields, regulatory clarity, institutional integrations.
- Gaming: active users, retention, fun-to-earn over farm-to-dump.
- L2 scaling: on-chain activity, low fees, ecosystem depth, dev velocity.
- Avoid: idle roadmaps, stretched FDV, shrinking dominance, recycled narratives.
| Bucket | Role | Why Now | Risk Cues |
|---|---|---|---|
| Core: BTC + ETH | Stability + liquidity | ETF flows, halving, easing liquidity | Macro shocks; overheated leverage |
| Rotations: AI | High beta narrative | Compute demand, tooling boom | No users; token utility unclear |
| Rotations: DePIN | Real-world throughput | Network effects, hardware rollout | Unsustainable emissions |
| Rotations: RWA | Yield + institutions | Tokenized assets traction | Regulatory bottlenecks |
| Rotations: Gaming | User growth | New titles, sticky economies | Farm-and-dump loops |
| Rotations: L2s | Scalability moat | Low fees, dev migration | Empty ecosystems |
Altcoin selection that targets ten times potential through narrative momentum team execution sector leadership and prudent fully diluted valuation
- Narrative momentum: Is the sector likely to reignite in this cycle, with clear catalysts and community heat?
- Team execution: Do contributors ship relentlessly, communicate roadmaps transparently, and hit milestones?
- Sector leadership: Is the project already dominant or fast gaining share within its niche?
- Prudent FDV: Does the fully diluted valuation leave ample upside without relying on unrealistic market caps?
- Execution tells: Frequent releases, ecosystem growth, and developer traction that outpace peers.
- Leadership signals: Rising dominance in liquidity, users, integrations, or partner alignment within the sector.
- FDV math: Early-stage leaders with FDV meaningfully below top incumbents in the niche, manageable unlock schedules, and token utility tied to real demand.
- Narrative checks: Clear alignment with 2024 themes (infrastructure upgrades, scalability, yield/points meta, RWAs, and consumer apps) that can sustain multi-quarter attention.
Accumulate with staged entries and dollar cost averaging set rebalancing triggers and take profits into strength as liquidity returns
Staged entries let you lean into the 2024 catalysts without chasing tops. With the Bitcoin spot ETF decision, the halving, and a likely shift to monetary easing on the horizon, layer buys as the narrative builds and avoid waiting for a “perfect” dip. Use a simple dollar-cost averaging (DCA) rhythm, then increase allocation around confirmed momentum, prioritizing projects in narratives primed for hype, with motivated teams, sector leadership, and room for a potential 10x based on reasonable fully diluted valuations. Guideposts for execution:
- Frequency: Weekly/bi-weekly DCA now-front-run liquidity rather than reacting late.
- Slices: Split entries across pre-ETF, pre-halving, and policy-easing windows to smooth volatility.
- Selection: Rotate toward emergent narratives; last cycle winners may lag as mindshare shifts.
- Valuation: Favor leaders whose FDV still supports asymmetric upside.
Rebalancing triggers keep the portfolio aligned as liquidity returns-don’t let winners become undisciplined overweight bags. Scale trims into strength and recycle gains into higher-conviction laggards. Consider triggers tied to FDV expansion (e.g., +2-3x from entry), sector dominance changes, or relative performance vs. BTC/ETH. Take profits into green days, not on red, and reset your DCA once allocations drift beyond target bands.
| Stage | Window | Buy Slice | Rebalance Trigger | Take-Profit Cue |
|---|---|---|---|---|
| Pre-ETF Build | Now → ETF decision | 25% | +100% from entry or +8% allocation drift | Green weekly close on ETF headlines |
| Post-ETF Momentum | Weeks after approval | 20% | FDV +2-3x vs. thesis | Strong volume breakout, fade 10-20% |
| Pre-Halving Run-Up | 2-3 months pre-halving | 30% | Sector leader rotates; rebalance to target | New highs with rising OI and breadth |
| Post-Halving Drift | 1-2 months post-halving | 15% | Underperform vs. BTC/ETH for 3-4 weeks | Parabolic move, scale out in thirds |
| Liquidity Wave | Fed easing window | 10% | Allocation >10% over target | High-liquidity squeeze days |
Key Takeaways
As we wrap up, the outline for a 2024-ready crypto portfolio is less about chasing yesterday’s winners and more about positioning ahead of tomorrow’s catalysts. The video’s core takeaway is clear: with a potential Bitcoin spot ETF, the halving, and a shift in monetary policy on the horizon, the next cycle will likely reward portfolios built around strong narratives, committed teams, sector leadership, and room for asymmetric upside-ideally with valuations that still leave space for a 10x in the best-case scenario.
Use this framework as a filter, not a forecast. Stay agile as narratives rotate, track real progress from teams (not just roadmaps), and weigh fully diluted valuations against realistic adoption curves. Consider your own risk tolerance and time horizon, set rebalancing rules before emotions creep in, and don’t assume past cycle champions will lead again.
If you’re building or refining your allocation, now is a good time to:
– Map positions to the three major 2024 catalysts and define how you’ll adjust if timelines slip.
– Watch on-chain traction, developer activity, and partnership momentum-not just price.
– Size positions so that a few winners can matter without one loser sinking the ship.
This isn’t financial advice. It’s a starting point for disciplined decision-making in a market that will move fast and change even faster. If you have a different screening framework or see an overlooked narrative forming, share your take-iron sharpens iron. Here’s to building with intention before the cycle builds without warning.