Digital Assets Weekly: April 28th, 2020
Please see important disclosures at the bottom of this report
Portfolio Strategy
Bitcoin and crypto markets have had a very strong week. We expect the strength could very likely continue over the next week and a half as we approach the Bitcoin halving on May 12th.
If you are a longer term investor without crypto exposure, this is still not a bad time to be dipping your toe in the water and gaining that initial allocation, but be comfortable with potential volatility risk and be able and willing to get more aggressive if prices find more attractive levels.
On the other hand, if you are a long-term investor with a proper allocation to crypto, as we have discussed in prior notes, I wouldn’t be jumping in too heavily and chasing the market here to gain added exposure. These run ups usually take breathers and offer the opportunity for more attractive levels.
While I’m not recommending investors sell here, if you’re a nimbler trader who caught most of the recovery since we started recommending clients buy aggressively near the sell-off bottom, I wouldn’t blame you for lightening up and taking some profits over the coming days and weeks.
To be clear, we remain affirmatively bullish over the next 12 months. But in the immediate days before and weeks ...Reports you may have missed
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WHAT BTC SHRUGGING OFF CPI SAYS ABOUT CURRENT FISCAL SITUATION The most significant piece of macro data this week was the CPI. Headline CPI registered at 3.5%, surpassing the anticipated 3.4%, while core CPI remained steady from last month at 3.8%, also above the expected 3.7%. This increase was largely attributed to rising costs in auto insurance and shelter. Consequently, interest rates saw a sharp rise, with the 10-year Treasury...
INFLOWS RESUME On Monday, market sentiments were rattled by a surprisingly strong manufacturing PMI figure, marking the first expansionary reading in 18 months. This led to a rise in rates, with risk assets across the board experiencing selloffs amid renewed inflation concerns and fears that the Federal Reserve might need to implement further measures to cool the economy. However, in our crypto comments video on Tuesday, we outlined a couple...
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