Grayscale, the world's largest encrypted asset company, released its quarterly report, which enlightens us ordinary retail investors
Grayscale Investments, the world's largest cryptocurrency asset management company, recently released its digital asset investment report for the second quarter of 2019. The report shows,Its crypto assets under management grew from $926 million to $2.7 billionAt the same time, all ten investment instruments in its Grayscale series of products have generated high returns, as shown in the chart below, and the highest return product, Grayscale Bitcoin Trust, has a return rate of 178.8%.
Grayscale, a New York-based digital currency asset management firm, has been investing in cryptocurrencies since 2013, according to the report.It manages more than 200,000 bitcoins, which is more than 1% of all bitcoins currently in circulation. The company is a behemoth for the digital currency market.
From its investment report, we can actually see thatThe Influence of Institutional Investors on the Digital Currency Market. The figure below shows the statistics of Grayscale’s weekly investment in digital currency funds in the second quarter. It can be seen that the company purchased a large amount of BTC in April and May, and purchased a large amount of ETH in June.
Comparing the daily K-line trend of BTC and ETH, in these two stages, they are both in a strong upward trend, and there are few opportunities for callbacks, which means thatThe rise of the BTC market since April this year is mainly driven by the buying demand of institutional investors。
Specific to the investment currency, Grayscale prefers BTC, accounting for more than 70% of the purchase share, followed by ETH and LTC, and other currencies, such as XRP, BCH, ETC, XLM, Zcash, Zen, etc. also have a small amount of layout. this reflectsInstitutional investors' preference for BTC focuses on currencies with large market capitalization. Compared with altcoins, such currencies have a higher market share, better liquidity and user base, and have certain value support.。
first of all
first of allInstitutional investors attach importance to the digital currency market, the digital assets managed by Grayscale increased from 926 million US dollars to 2.7 billion US dollars, nearly three times, the investment of real money reflects the importance that institutional investors attach to the digital currency market, that is to say,The digital currency market is promising, and we should maintain confidence in the market。
Secondly, judging from the investment currencies managed by Grayscale, it is mainly BTC and mainstream currencies such as ETH.The entry of institutions will increase the demand for mainstream currencies. therefore,For our ordinary retail investors, the investment strategy should also gradually transition from the full warehouse cottage in 2017 to the strategy of focusing on mainstream currencies. According to the current trend, the currency circle is very likely to be polarized, the mainstream currency is getting stronger and stronger, and the altcoin is getting weaker and weaker and gradually withdraw from the stage of history.
Finally, as I said earlier,The large-scale entry of institutional investors has brought incremental funds to the currency circle, but it has actually intensified the competition in the entire market and made it more difficult to make money in the market. The entry of the regular army is definitely bad news for retail investors in a weak position. Everyone must have a deep understanding. It is too difficult to earn money in the currency circle this year. What should I do? Only by improving one's own ability level, including investment philosophy, method strategy, investment mentality, K-line theoretical knowledge, ability to analyze market trends and read the market, mastering and understanding industry dynamics and many other aspects.
Investing is a very personal thing.On the road of investment, all external factors are false. Only the improvement of one's own ability and profitability are the most important. Everything is for growth. Getting out of the comfort zone and allowing yourself to meet challenges is the struggle that everyone should have Way。
The recent market trend of the market has continued to fall, which has hurt everyone, and pessimism has spread. This is just a temporary pain. After the pain, a better tomorrow will usher in. Remember the words of Sir John Templeton: "Operation suggestion:”
Operation suggestion:
BTC: Daily line level, testing the support strength of the MA120 daily moving average. If the K line can successfully break above the moving average in a short period of time, the market still has the hope of an upward rebound. But we must understand that after the market fell from 14,000 US dollars, it has actually entered a bear-dominated pattern. The weekly MACD dead cross means thatUnder the premise that there is not a lot of energy to push the market up, the overall market is bearish, and even a small-level rebound cannot change the general trend, this needs to be treated with caution.
The short-term 4-hour line level. After yesterday’s decline, the market is currently consolidating its trend in the range of 9300-9600 US dollars, showing signs of stopping the decline and stabilizing in the short term. The current position is close to the strong support point of 9,000 US dollars, and the probability of continuing the catastrophe is low. Short-term operators can open a small amount of positions in the range of 9,000-9,500 US dollars to gain opportunities for short-term rebound. The rebound height is roughly 9,800-10,300 USD range.
ETH: Last night, the mainstream currencies collectively dropped for a wave, but quickly returned to the volatile trend. ETH is currently adjusting its trend slightly in the range of 166-170 US dollars, and can open a small amount of positions in the range of 150-170 US dollars, and the rebound pressure range is 180-200 US dollars.
LTC: The market is showing a downward trend, the bottom is getting lower and lower, and the support of the market is weak. In the short term, 50-60 US dollars is the support, and 70-80 US dollars is the upward pressure. It is not recommended to operate.
BCH: The trend is weak. The short-term range of 260-270 US dollars is the bottom support, and the upper pressure is 300 US dollars. You can open a small amount of positions at low prices.
EOS: In the short term, focus on the support of 3 dollars, and the upper pressure level is 3.5, 3.8-4 dollars. When there are obvious signs of a rebound in the big pie, you can open a small amount of positions, buy low and sell high.
XRP and TRX: The market is not stable, and the bottom support is weak. It is not recommended to enter the market in the short term.
Platform currency: The overall trend is weak, everyone is waiting and watching, and the willingness to buy bottoms is extremely low. During the consolidation period of the market, it is not recommended to operate. If there is a trend of increasing the volume of altcoins held, don't chase the high and buy, but should reduce the position while the price is rising. In addition, if you have any currency you want to analyze, welcome to ask questions in the message area.
