Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy. Since my last update “Bitcoin - Forex Combo Strategy: Taking a Look at Tezos” price action in Bitcoin recovered from its lows, but I think this is a bull trap and that we will head south once again. I keep monitoring the support zone between $6,380 - $6,550 and we may get a “Christmas present” with a drop to $6K, a fantastic buying opportunity to start 2020. A breakdown below $6K would result in a tough path forward, but I remain bullish long-term.
High inflation rates in many African economies and struggling fiat currencies create the perfect environment for Bitcoin and other cryptocurrencies to thrive. Countries with double-digit inflation include South Sudan, Egypt, Ghana, Malawi, Mozambique, Nigeria, Zambia, and Zimbabwe. The highest Bitcoin adoption rate across the African continent can be found in Botswana, Ghana, Kenya, Nigeria, South Africa, and Zimbabwe. The overlap in both categories shows the start of a trend and I expect this will accelerate throughout the next decade.
The West African Monetary Zone (WAMZ) is set to introduce the Eco, a new common fiat currency, across the Economic Community of West African States (ECOWAS). This would see fifteen countries share one currency. ECOWAS consists of two zones, Zone A and Zone B, and is home to eight fiat currencies. Eight countries already share a common currency, the CFA Franc, and the Eco will merge with the CFA Franc. ECOWAS is home to over 330 million people and the official languages spoken are either English, French or Portuguese. Zone A is home to eight countries and represents the smaller part while Zone B represents the bulk of ECOWAS. The Eco is a fiat currency, but important to keep in mind as it will eliminate eight fiat currencies. The trend of fiat currency elimination will make a strong case for cryptocurrencies to play a bigger role.
Africa is the world’s second-largest and second most-populous continent, but also the most underdeveloped one. It is also home to the youngest population with the 2012 average age at 19.7 years. The young age of the entire continent means that technology is eagerly implemented and Africa may close the gap to the rest world faster than is currently expected. The political and economic jigsaw puzzle is creating an interesting dynamic in Africa, an emerging frontier market for the cryptocurrency sector.
I let the volatility play out, remain patient, and have made no adjustments to my portfolio. I currently hodl 1,000 Bitcoins at an average entry price of $7,950, 60,000,000 Ripple which carries an average entry price of $0.3015, and 100,000 Litecoin with an average entry price of $52.80. The three charts below show my Bitcoin, Ripple, and Litecoin holdings.
I also kept my 250 lots long Gold position which I took on October 18th 2019 at $1,485.00 for a margin requirement was $372,798 with a pip value of $250. Gold has recovered off of its lows which works for me. In case of a sell-off, I am planning to add another 500 lots if the price drops to around $1,400. My 500 lots short position in the USDCAD, from November 15th 2019 at 1.3250 for a margin requirement of $100,000 with a pip value of $3,829.39 remains unchanged. So does my 500 lots short position in the EURJPY from November 22nd 2019 at 120.250 for a margin requirement of $110,150 with a pip value of $4,603.03. The charts below show my open Gold, USDCAD, and EURJPY positions.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $7,676,500, 60,000,000 Ripple worth $13,254,000 and 100,000 Litecoin worth $4,840,000 plus a total cash portfolio worth $3,411,082. Also, I have the following positions in my forex portfolio: a 250 lots Gold long position worth -$158,702, a 500 lots USDCAD short position worth $8,095, and a 500 lots EURJPY short position worth -$50,956. My total Bitcoin - Forex Combo portfolio is worth $28,980,019, up $520,751 from last week’s value of $28,459,268 and off of my all-time which stands at $34,799,502. Are you ready to grow your account? Take your first step now, open your own PaxForex Trading Account today and follow my Bitcoin - Forex Combo Strategy! Comment below with any questions you may have and I will be happy to help you get started!
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