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It is very likely that in the medium term, large companies will make decisions about investing not only in Bitcoin, but also in some of the leading alternative cryptocurrencies, which will only reinforce the positive attitude towards the sector. Nevertheless, so far we see that very few companies publicly report on the purchase of Bitcoin, and we are not talking about huge investments, but at this stage there may be enough informational reasons.

There is good news for the bulls: Bitcoin hasn't dropped below $43,000. But there is good news for the bears too: Bitcoin has not gone above $52,000. Having drawn a sinusoid, the BTC/USD chart returned on the afternoon of Friday, March 05 to where it started seven days ago. The question of whether this is a correction or the beginning of a new "crypto-winter" remains open.

The statements of a number of US politicians and officials also have a positive impact on the price of digital assets. For example, Miami Mayor Francis Suarez announced that he had already taken a number of steps to legalize cryptocurrency. “We have made bitcoin an available currency for potential investors. In addition, employees can receive salaries in cryptocurrency, which is a huge step forward,” he wrote on Twitter. Candidate for mayor of New York and former candidate for US President Andrew Young supported his colleague, saying that he will try to make the financial center of the world become a center for cryptocurrencies as well. And St. Louis Fed chief James Bullard called bitcoin a rival for gold.

Bitcoin continues to correct downward, losing more than 6% since the beginning of the week and has been trying for several days to break through support just below $ 18,000. The pendulum swung in the direction of the bears and the increased trading volumes show that many are in a hurry to take profits from a two-fold price increase over the past two months - and on the eve of the end of the calendar year and after extreme overbought

Since the end of March, investors have been buying 50000 bitcoins every month. Based on the data obtained, analysts predict that in the near future one should not expect massive sales on the crypto market. Meanwhile, despite the rise in bitcoin, large speculators on the Chicago Stock Exchange have opened a record net position for the decline in cryptocurrency. Open interest also reached a record level - the sum of all open positions in the market. A lot of relatively small traders have arrived on the market, wishing to participate in the growth of the asset. The number of sellers remained almost unchanged, but they hold much larger downward positions.

I find the investment logic of the owner of this portfolio a bit weird. He has deliberately devoted equal portions of this money to the competing projects. So, if one of them, for instance, EOS, manages to succeed in "killing" Ethereum, and other competitors by association, that would result in substantial losses on at least two positions. Compiling a crypto portfolio is all about betting on cryptos that promise largest gains while trying to counterbalance potential losses. This portfolio composition is almost guaranteed to bring losses to its owner.

When describing the reasoning behind such structuring of his portfolio, the owner should have mentioned whether he plans on holding these cryptocurrencies for a prolonged period of time or not. Because if that is a long-term investment, then it might have been reasonable to spread it so evenly among these particular altcoins. However, the "all-alt" portfolio for the years 2019/2020 makes little sense because of the present Bitcoin dominance. I suspect that this particular nuance hasn't been taken into consideration when drafting this portfolio.

Portfolios Reviews & Comments - April 2024

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