Market view and a comment on the last rebalancing

The total market cap of Cryptocurrencies has seen a decline in the past weeks as the euphoria has cooled off. The market as a whole is down some 37% off the early January tops and the market is trying to find a floor to bounce off of. Altcoins in general have so far have been underperforming bitcoin slightly, but there are exceptions (ZRX, ETH etc).

At FCI, we still believe that altcoins have more upside in the near future. As soon as bitcoin stabilizes we should see market participants move back into alts driving the prices higher. As far as our portfolio goes, we have unchanged confidence in ETH and ZRX as we see continued development and progress in the Ethereum community and projects. At the same time, we have a sizable position in EOS for diversification purposes and as the possibility of good news coming increases as they are getting closer to launch.

We recently added Monero (XMR) to our portfolio in order to have exposure to the ever so interesting anonymity segment of the crypto market. XMR has remained strong during the recent bear phase and we believe that privacy-focused coins will have a bright future especially as regulators become more active in trying to intervene in value transfers. In terms of competition, we believe that Monero is the strongest as it is the market leader with widespread support from the community and it has been around for quite some time now.

We have also made some small adjustments downwards on ANT, FUN and OMG to make way for Metalpay (MTL). We have had our eyes on MTL for some time, and it has been a part of our DAA allocation in the past but now we decided to re-add it back to our portfolio. There has been some intense selling combined with FUD (fear, uncertainty & doubt) which has kept the price low for some time but we believe it is a good risk/reward play both from a fundamental and technical view. MTL’s product is set to launch sometime in the next 2 months and we believe that there can be significant upside leading up to this event.

Apart from that, we are currently keeping a close watch on the performance of bitcoin as it affects the entire market. With the uncertainty and massive activity among FUDders regarding Tether, the market does look shaky and investors need to be careful and always triple check any piece of news as there is a lot of manipulation going on at the moment.

That was it for this time, trade safely and best of luck!