Exactly that's why most time I don't advice anyone that haven't gotten far in his Bitcoin accummulation to diversify his cash in other investment rather focus on building a nice Bitcoin stash first in his portfolio, before thinking of diversifying yah cash .
Because you doing it now (diversifying) , will only slowdown your Bitcoin accumulation rate . And when it comes to Bitcoin having a small portion ain't encouraging at all , that's why you need to build some good stash through various means of accumulating though it. May Taks time but still worth it .
May be after reaching your accumulation goal you can focus other investment by diversifying yah funds.
Diversification is a strategy designed to protect the capital of the investor, this way if a sector in which they are invested does badly, their portfolio can still offer them a good performance if the rest of the markets are doing well.
But when it comes to building your wealth, concentration is the way to go, investing in too many markets and assets distracts you and dilutes your capital, but by doing the opposite and investing only on the best asset possible, you can dedicate your whole energy to it and become an expert much more quickly than if you took the diversification route.
Besides a great deal of the time the people that claim to use the diversification strategy, do it to invest in shitcoins which is not true diversification, not only as they are not investing in a different market than the one bitcoin created, but also because by doing so they are increasing their risk instead of reducing it, which is the true aim of diversification.