15 January 2020
Dear Investors,
A Special Note...
We have just witnessed a fascinating day in Crypto Markets. We’ve not seen pumps like this for a very long time and it has the world crypto markets very excited.
Bitcoin (BTC) is now up over 20% for the last month:
Bitcoin SV (BSV) is up 260% for the last month and 66% today.
The whole market is experiencing high turnover and many coins are pumping. ZCash is up 50% for the week and Dash up 100% for the week.
Analysis
Bitcoin SV (BSV) is not our preferred vehicle for crypto investment and we expect this current price action to be temporary. Therefore, we are not recommending buying BSV. However, there will be significant gains made by people who invested in BSV a week ago (possibly the same people who pumped the price) and they will be looking to exit BSV with as much as possible in winnings. BSV is not listed on major exchanges and most of the volume is on smaller exchanges where you cannot sell for FIAT currency (ie. USD, EUR, AUD). Therefore, it is likely there will be selling of BSV against Bitcoin and Etherium as well as USDt. That may put positive momentum into the Bitcoin and Etherium prices. Investors who made money may be looking to the next place to park their money and Bitcoin is the safest while Etherium may be undervalued.
The above chart shows how far BSV has risen against ETH and the reverse trade may be on the cards.
Trade Idea
As long term investors you should be looking to buy quality cryptocurrencies and this might be a great time to buy Bitcoin (BTC) and Etherium (ETH). For those of you that bought in 6 months ago this is a great time to average down your buying price and for those that bought earlier this month it's a great chance to top up at a time when there is growing interest and excitement in the market. If you were around in the 2017 bull run you will know that the gains we’re seeing now are nothing compared to what's possible in crypto.
Trade Idea:
LONG BTC, ETH against AUD.
*Call your Stormrake Broker or email us at custody@stormrake.com to transact.
Stock to Flow check
Current 365day Stock to Flow Valuation: $11,903AUD vs Current Price - $12,462AUD. Slightly above valuation suggesting that Bitcoin might be a HOLD. However, with the halving coming up the model suggests a step change in price within the next 6 months making this a strong BUY.
We appear to be in accumulation faze as we head towards the halving when we expect the Bitcoin price to appreciate in line with history.
Special Security Note:
The Australian Exchange ACX is having some issues. If you hold any funds at this exchange please contact us for advice on what actions to take.
Stormrake Team
custody@stormrake.com
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The information provided in this newsletter is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information contained here you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. Therefore, before you decide to buy any product or keep or cancel a similar product that you already hold, it is important that you read and consider the relevant Product Disclosure Statement (PDS) of the product provider to make sure that the product is appropriate for you. Before making any decision, it is important for you to consider these matters and to seek appropriate legal, tax, and other professional advice. You can get a copy of relevant PDSs from Stormrake by email .
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