The crypto bull market is finally back, and I couldn’t be more excited about it. If the recent bear market was your first, congratulations on making it through. I believe we’ll go up from here, and all the crypto analysts I respect are in agreement.
Willy Woo, the most accurate bitcoin analyst I follow, recently tweeted, “In BTC’s 10yr trade history, crossing above the 200 day moving average (blue line) for any sizeable time (say 8wks+) has signaled bull season. Even a super conservative trend line support puts us above the 200DMA. Bull season is now 99%.”
A bear market is a rough experience. And this last one was particularly difficult. Holding crypto during an extended down period requires both discipline and optimism. And it can test the most seasoned investors.
But for me at least, learning to “hodl” has positively impacted my overall investment style.
It’s my strong belief that the real money is made by holding quality assets for long periods of time. This is incredibly difficult to do in crypto due to high volatility. I had no idea that it would be even harder guiding members through this process. So if you stuck with us, thank you. I will do my best to make it up to you in the following months.
Bitcoin is holding strong at around $8,400 as I write this, and most of our altcoin portfolio positions are up very nicely for the year. I continue to be most bullish on nano, decred, ravencoin and bitcoin.
I am evaluating dozens of potential new positions but haven’t nailed one down yet. Stay tuned.
Big News
Binance has announced that it will no longer allow U.S. residents to trade on Binance.com. Customers will have 90 days to move their holdings to another exchange or their own wallet.
Binance will eventually open a new U.S.-compliant exchange, which will apparently offer fiat trading. Unfortunately, no timeline has been provided.
Facebook’s “GlobalCoin”
We’re getting a consistent drip of news about Facebook’s upcoming cryptocurrency, which will apparently be called “GlobalCoin.”
The company appears to be extremely serious about this project, which is being called Libra. Uber, Visa, Mastercard and PayPal will invest $10 million each in Facebook’s new division.
Facebook appears to recognize that people won’t trust a “just Facebook” coin, so they’re bringing on some serious firepower from partners.
From what we know so far, it appears GlobalCoin will be backed by numerous fiat currencies from different countries. Therefore, I do not view this as a direct competitor to bitcoin or other truly decentralized coins.
If you’re using a cryptocurrency backed by fiat, it won’t provide any of the hedging (to the fiat-based economy) that real cryptos offer. That’s ultimately why I don’t think Facebook’s coin is a threat to what I consider “real crypto.”
Libra seems to be more of a threat to Visa and Mastercard, which is probably why Facebook invited them to invest.
However, this is an area we’ll be keeping a very close eye on. A non-fiat-based crypto started by a company like Google or Amazon could actually be a threat to bitcoin. I don’t see that happening, for a number of reasons. But it’s still worth monitoring.
Have a great weekend, everyone!
Adam