Dear Member,
Crypto has been on a very nice run over the last week. From last Thursday through yesterday, bitcoin rose from $7,456 to $8,850. We’re less than two weeks away from bitcoin’s halving, which could provide continued support for the bull run.
Here’s how altcoins in our portfolio performed during the same period.
● Nano (NANO) rose from $0.58 to $0.64.
● Decred (DCR) rose from $12.43 to $13.60.
● Haven protocol (XHV) rose from $0.26 to $0.33.
● Ravencoin (RVN) rose from $0.0172 to $0.0193.
● Vertcoin (VTC) rose from $0.27 to $0.28.
Not bad at all. But over a longer time frame, bitcoin continues to outperform altcoins by a large margin. Unfortunately, many of our coins haven’t done well over the last year. This is why I have stressed the importance of making bitcoin the core of your crypto holdings.
I continue to believe bitcoin should be, by far, the largest coin in all crypto portfolios. As I often stress, it’s way ahead of the competition. During the COVID-19 crisis, this is even more important. As I said a few weeks ago, if we get another crash in stocks, it’s likely altcoins will sell off heavily.
We did get another piece of very good news this week – for both bitcoin and altcoins. Legendary venture capital firm Andreessen Horowitz announced it has raised a massive $515 million crypto fund.
Here’s an excerpt from Fortune’s reporting on the news.
Andreessen Horowitz is betting big on cryptocurrency – again.
Two years after raising $300 million for its first investment fund devoted to Bitcoin and other cryptocurrency projects, the Silicon Valley venture capital firm has raised a second similarly themed fund. The new vehicle, which closed Thursday and focuses on blockchain technology, the database innovation behind cryptocurrencies, totals $515 million.
“It’s very rare that major, new computing paradigms come along, and we think this is on the scale of cloud and mobile for the Internet,” notes Chris Dixon, coleader of the fund. He says he expects to see the debut of many new blockchains – including those from the previous fund’s bets, such as the hyped-up “world computer” Dfinity – in the coming year.
This is a great sign for the crypto world. It shows that serious institutional money still wants exposure to this sector. I will be watching this development closely because it has the potential to dramatically increase investor interest in the altcoin market.