The purpose of this update is to tell you what I am doing and why. It’s up to you to determine what you would like to do.
Most know that I ladder in my positions and it works to prevent substantial loses, but as you know, even the most sound strategy in crypto has a lot of risk.
Here is why I am in hodl mode with ETH.
1. Constantinople upgrade. If you don’t know about it, this is going to fix a lot of the scaling issues people have been worried about.
2. Ethereum . The CBOE has confirmed that they are doing ETH . All they were waiting on is the CFTC to clear ETH as a commodity, which they did. I even called my buddy at the CBOE and confirmed that they are moving forward with ETH at the end of the year.
a. Here is what is interesting about ETH . You aren’t required to keep assets on hand to meet settlement needs. But a lot of times places do to hedge risk. It would make sense that some big players would start buying ETH to ensure they can hedge themselves against risk. They have to be loving this cheap ETH to hedge them selves for the market if they are indeed hedging risk.
3. Institutions moving towards crypto. Some institutions like the Yale endowment fund have been making head lines for investments in crypto. While a lot of these are private, certainly a lot will be directly into the markets.
4. Some Technicals. ETH has broken this down , but it hasn’t mattered. What I think does matter is the fact that ETH/BTC is very low, almost at 2016 levels and is oversold. I would imagine these levels will find stability down at these levels.
5. 88% decline. Finally, we have gone down more than BTC’s 81% decline in 2014. I don’t know that ETH is going to 6k, but I certainly think we are due for a large bounce. If you could go back and buy BTC at $200, wouldn’t you?
I imagine we will see some favorable action after the Constantinople upgrade on October 19th. We’ll need to evaluate once that happens.