March Portfolio Update
A Bull Market Resurgence?
The cryptocurrency world is moving at a blindingly fast pace. This letter is a portfolio update, but I’ve decided to include a bit of analysis and commentary on a couple of events that have been taking place in the bitcoin world.
Russia & Bitcoin
Terra Luna & Bitcoin
If you’re paying attention to bitcoin, then you know that it broke past its $45k resistance level earlier this week. I think the two aspects I’ve outlined above are largely responsible for the uptrend.
Let’s dig into those two aspects, then I’ll discuss the changes that took place in my portfolio in the month of March.
Russia & Bitcoin
I’ve actually written two articles on this topic previously.
The first article was right after the conflict began wherein I predicted that this whole conflict would place bitcoin in the spotlight as a tool through which Russia would skirt economic sanctions.
After they announced that they would be open to selling oil for bitcoin, I think this prediction came true. Also in the article, I explain that the tradable supply of bitcoin is low, making it easier for bitcoin to move in either direction (increased volatility).
Evidently, it seems like the market’s perception of bitcoin as an alternative money for Russia is bullish for bitcoin.
In the second article (released earlier this week), I go into more detail about how the geo-political situation between Russia/Europe and Russia/Turkey will play out.
There is quite a lot unfolding economically between these nations, but in my opinion, Russia holds the better hand as they’re in control of oil that Europe needs.
The TL;DR; of the article is that Europe will either need to purchase $29.5 million worth of Rubles or Bitcoin in order to buy Russian oil.
Terra Luna & Bitcoin
This leads nicely into the next factor that I see contributing (significantly) to the rise in price of bitcoin.
Terra Luna is another smart contract platform (like Ethereum). It is lead by an individual by the name of Do Kwon. On March 23rd, Do Kwon let the world know through a tweet that Terra would be buying $10 billion worth of bitcoin in order to back their stablecoin reserves.
We’re now more than a week into the buying process, and it looks like Do Kwon is making good on his promise.
One trader tracking these purchases is Pentoshi
Terra is buying their bitcoin in $125 million dollar chunks spread out over the course of 90 days.
That’s 125,000,000 * 90 = $11,250,000,000. This is a basic dollar cost averaging strategy, but on a massive scale.
While my $10 per day purchases are unlikely to cause the market to move upwards, Terra’s daily $125 million dollar purchases surely could.
What this does to the market is remove liquid supply, and steadily reduce the tradable supply of bitcoin on the market. How this all unfolds is still yet to be determined, but from my perspective, the set up is very bullish.
Portfolio Allocations
Now for this month’s update on what I’m holding and how my portfolio has changed. I’ve decided to give a bit more detail on my holdings such as how much debt I’m currently carrying. This will give you an insight into how much risk I am taking on.
I’ve crossed out the activities in my portfolio that I am no longer doing. For example, I am no longer staking .85% of my CRO on the Crypto.com exchange as I was only getting 10% APY there. I moved it to the darkcrypto.finance ecosystem for a much higher return.
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