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Week 18 Recap
I've been copying and pasting this phrase pretty much every week for months now...
Bitcoin touched a new all time high of 20,000 USD on some exchanges today (over ~$25,000 CAD)! It was only 2 weeks ago that we hit 10k USD for the first time. Still waiting for that correction to buy more...
This week was insane. Multiple assets in the portfolio were up by over 200%, and only 5 of the 31 assets are below where we started!
Before I go any further I wanted to give a quick shoutout to HitBTC for their customer service this week. They're the exchange I used to purchase all the crypto in this portfolio, and I have a soft spot for them since they have a nice clean trading interface. Anyways, my phone was damaged and I lost access to two factor authentication. No worries I thought to myself, I'll just use my backup code to access my trading account. Unfortunately I wrote the code down incorrectly and was locked out. I've come to expect pretty poor customer service from crypto exchanges, especially when it comes to account access, so when I was able to get back into my account within 2 days I was extremely pleased. I recommend you check them out. Full disclosure, the link above is an affiliate link. I have no relationship with HitBTC in any way and am not sponsored by them (or anyone else for that matter).
New chart this week: portfolio vs. Bitcoin performance over the duration of the experiment. This chart shows what would have happened if I invested all the money in Bitcoin at the start of this experiment instead of splitting it across 31 cryptos. I get asked for this almost every week, so here you go!
Important events coming up this week:
- CME Bitcoin futures will be listed tonight, and will be available for trading on December 18th. Things to remember:
- Cash settled.
- Contract Size: 5 Bitcoin
- Trading Times: 6PM to 5PM (Sun-Fri) Central Time (CST)
- Settlement Dates: March; June; September; December
- Margin: 35%
- Settlement Price: The contract is settled using the CME Bitcoin Reference Rate (Weighted Average of Prices from Bitstamp, GDAX, itBit and Kraken).
- Circuit Breaker: 7%; 13%; and 20%. (Trading is stopped for 2 minutes when the price rises/falls above each of these levels in one day, it is not allowed to rise/fall more than 20%).
- Link CME Bitcoin futures quotes.
- TD Ameritrade customers who have at least 25K USD will have access to CBOE Futures (NOT CME) on Monday. Customers will be required to post margin (unknown what %, but it's likely going to be high). CME futures may be added at a later date when TD Ameritrade feels like it is "safe" to do so. This opens up these futures to far more retail investors.
News this week:
- CBOE futures were a bit of a let down. Volume ranged from as little as 1,000 contracts per day up to around 4,000, representing a paltry ~60 million dollars on average. The prediction is that CME volume will blow CBOE's volume out of the water, but that remains to be seen. You can see CBOE volume and other information here.
- Details have slowly emerged about the Nicehash hack. It appears that hackers obtained access via an employees compromised computer and completed the theft within 3 hours of gaining access.
- According to Krebs, the CTO of Nicehash recently finished serving several years in prison for operating the 'Mariposa' botnet, which infected over 1 million computers. I don't get the feeling this was an inside job as Matjaž Škorjanc seems to have stuck around, and most of the money is still sitting in that address. A more likely scenario is that I'm making up out of thin air is that this was a targeted personal attack aimed at one of Nicehash's executives.
- Coinbase continues to suffer from weekly outages and buy/sell halts. See their engineering blog for the latest post mortem.
Week 18 Results
Although DigitalNote and Ripple posted gains of over 200%, the winner this week in terms of absolute USD gain was LiteCoin with a gain of +36.09 USD (+126%). It's pretty hard to lose money this week but Polybius managed to: it dropped 27% this week (-2.17 USD).