View on the Market

Mar 8

The Party just started

TLDR: February saw a surge in Bitcoin, reaching all-time highs, but also increased volatility and risk. A 'flash' drop occurred, underlining the need for a defined investment plan and cash reserves. Upcoming events, including Bitcoin's 'halving' and potential Ethereum ETF approval, could further impact the market. The current strategy is to 'follow the trend'.

What a February we have had. It seems that general spirits are once again very optimistic about the future of cryptocurrencies. Obviously, the star asset has been BITCOIN which has again reached its all-time highs, now moving into positive territory.

This rally has also had its consequences, which is the increase in volatility, which consequently brings some ‘traps’ when investing.

A couple of days ago we experienced a ‘flash’ drop, in which the price of BTC fell almost 9% in a matter of hours, performing thousands of leveraged traders' liquidations.

In situations like the current one, we believe it is more necessary to stick to a defined plan, gradually increasing risk as the market is willing to reward it, but maintaining enough cash reserves to capture eventual opportunities.

In the coming weeks, the narrative of Bitcoin's ‘halving’ will increase, so it is likely that volatility will increase a lot in the days before and after the event.

We also continue to pay close attention to the possible approval of an Ethereum ETF. We believe this milestone will be even more relevant, as it will indirectly validate the ecosystem and all the smart contract-based protocols that use ETH technology.

In summary, in situations like the current one, we believe that the most reasonable thing is to ‘follow the trend’. The general rule tells us that the market is highly likely to continue in the same direction it has been launched, rather than in the opposite direction.

Alpha One Update:

Month to Month* +28.96%

Year to Date* +26.15%

Since Inception** +104.91%

February has been an excellent month for our star portfolio, with a monthly return of 28.96%. But the most notable milestone is that we have reached a +104% return since the start, which means that all initial investors have already doubled their investment.

As notable adjustments, we have implemented 2 new strategies. On one hand, a HODL position, both in BTC and ETH, and on the other, a High Yield Earn strategy, with which we hope to reduce the overall volatility of the portfolio and achieve fixed returns so far this year.

Edu Forte,

CEO and Co-Founder.