Welcome back everyone to this week’s edition of my Bitcoin - Forex Combo Strategy. During my last update “Bitcoin - Forex Combo Strategy: Solid Fundamentals, Weak Technicals” I pointed out that we are likely to see more selling pressure in Bitcoin. We did drop below 7K but have rebounded since then as volatility remains elevated. I don’t think that we have seen the last of this sell-off. We did recover off of my support area between $6,380 - $6,550. I am not counting out a drop into the $5,170 - $5,520 support area just yet, this could be part of a capitulation move before we head higher in 2020.
In a rare move for a cryptocurrency exchange, but very well in-line with the pure nature of cryptocurrencies, Poloniex axed KYC requirements for new accounts. Poloniex is one of the world’s largest cryptocurrency exchanges, with somewhat of a controversial history. The move to drop KYC requirements may have been influenced by Justin Sun, the founder of TRON, who has invested in the exchange a few weeks ago. Accounts that were frozen due to lack of KYC documents will now be turned into active accounts.
At some point, Poloniex commanded over 50% of trading activity in the cryptocurrency market. Peer-to-peer payments technology company Circle purchased Poloniex on February 26th 2018 for $400 million. This brought it under US regulation and in October of the same year, Circle decided to part ways. Trading volume dropped to less than 1% and following the spin-put and rebranding into Polo Digital Assets, Sun became part of a consortium of investors who will refocus in Asia. I think this will provide a significant boost to Poloniex in a powerful statement that crypto and the US don’t match well. It is too early to tell which direction Poloniex will take from here, but at the very least an interesting development to follow in 2020.
Some may view the move by Poloniex to drop KYC requirements for its Level 1 account as a move in the wrong direction, but it is taking the firm closer to the core of true cryptocurrency supporters. One of the core principles of the cryptocurrency sector is built on is anonymity. KYC requirements counter the anonymity component and turn cryptocurrencies into nothing more than a payment processor controlled by government regulators.
I have made no changes to my cryptocurrency portfolio, and I am waiting for the next year to start before seeking new opportunities. I currently hodl 1,000 Bitcoins, at an average entry price of $7,950, 60,000,000 Ripples, which carry an average entry price of $0.3015, and 100,000 Litecoins with an average entry price of $52.80. The three charts below show my Bitcoin, Ripple, and Litecoin holdings.
I also keep my 250 lots long Gold position, that I took on October 18th 2019 at $1,485.00 for a margin requirement of $372,798, with a pip value of $250. Price action started to recover and I am now looking for a breakout above $1,500.00. The chart below shows my open Gold trade.
Here is the summary of my Bitcoin - Forex Combo portfolio: I hodl 1,000 Bitcoins worth $7,220,750, 60,000,000 Ripple worth $10,836,000 and 100,000 Litecoin worth $3,970,000 plus a total cash portfolio worth $5,523,503. Also, I have the following positions in my forex portfolio: a 250 lots Gold long position worth $714,048. My total Bitcoin - Forex Combo portfolio is worth $28,264,301, down $917,654 from last week’s value of $29,181,955 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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