Black Marlin CryptoSure Balanced Fund: Fund Managers’ Report for the period ending 12 March 2018
The past week has seen substantial volatility in the crypto markets with the bellwether Bitcoin (BTC) starting at over $ 11 500 dropping steeply to find some support around $ 8 500 on the 9th March whereafter it struggled to break through short-term resistance at $ 9 500 and retesting the $ 8 500 support levels again on the 10th and 11th March recovering to test the upper band of $ 9 500 again on the 11th and 12th. See the attached graph. A clear trading band is developing and some of this can be linked to the USD strengthening in anticipation of rate increases in the USA. The trade tariff debate also caused ructions and this led to some USD weakening and BTC strengthening mid-period. Generally most financial markets are in flux currently and our view is that the volatility will continue for some time due in particular to political uncertainties globally. Specifically the concerns over regulatory oversight has also kept the crypto market nervous and several concerning news reports of malfeasance in the crypto world added to the woes.
The investment team have taken a two-pronged approach to the past week in that some 50% of the investment fund was utilised to develop the mining capacity utilising the masternodes of Tune, Numus and Medic coins. These are considered to offer additional long term value to the fund and are of strategic interest. The purchases of the coins to purchase the masternodes went well and we were able to trade into the market weakness such that we effectively “saved” BTC. This will now be utilised for opportunities as they present themselves. The investment team also put in bids at lower levels to purchase several altcoins such as Ripple (XRP) that we believe offer good value relative to BTC currently. We fully expect the current wave of weakness to assist us in this regard. This is in line with the mandate to balance the fund in terms of the overall investment strategy.
While the first week was more of a technical nature we are looking forward to the next trading week to develop the trading strategies further and add value to the fund.