Genuinely curious – does anyone here actually rebalance their BTC position or do you just hold?

I've been going back and forth on this for a while and wanted to see what other people are doing.

I have about 10% of my portfolio in BTC. Through 2021 I just held – watched it go from 29k to 69k, felt great about it, then watched it go all the way back to 16k without selling anything. Classic. In hindsight I obviously should have trimmed some but at the time it felt like selling would be a mistake.

So now I've started doing something really basic: I set 10% as my target and if BTC drifts more than 5 points above it (so it becomes 15%+ of my portfolio) I trim back to 10%. If it drops below 5% I add more. I also just check at the end of every quarter and rebalance back to target regardless.

It's not exciting. It's basically what pension funds do with every asset class. But when I went back and looked at what this would have done across every major BTC cycle it's kind of nuts:

– 2013-2015: you would have trimmed near $1k and bought back around $200-400

– 2017-2018: trimmed near $14k, bought at $3-4k

– 2021-2022: trimmed near $48k, bought at $16-20k

Like… the mechanism automatically sells high and buys low every cycle. Not because you're predicting anything, just because BTC runs up so fast it overshoots your target and the math forces you to trim.

The part that convinced me was that it's worked in literally every cycle, not just one. If it only worked in 2021 that would be a coincidence. But it's the same pattern every time because BTC is so volatile and cyclical.

One thing I'll flag – if your BTC is in a taxable account the trimming creates tax events. I hold mine through a spot ETF in my IRA so rebalancing is tax-free which makes this way simpler.

Curious if anyone else does something similar or if most people here just hold and don't touch it. I feel like everyone talks about DCA in but nobody talks about what to do once you actually have a position.

(fwiw I built a tool for myself at portfoliolab.app that lets me backtest different rebalancing frequencies on a BTC portfolio if anyone wants to play with the numbers – free for anyone to use, just runs in your browser, just sharing because why not)