Riding the Waves - February Market Report

In this report, we will take a look at the current market and the impact on the investor portfolio.

Hello CryptoExplorer Pro members, it's time for another monthly report on the current state of the crypto market and our portfolio. As always, I aim to provide you with a quick overview of the market and actionable insights to help you navigate the ups and downs of the crypto world.

Current situation

Jacques explained it well:

"As we know, the Bond market is the smartest money and Bonds have been risking-off over the past few weeks, hence we have seen Bond Yields move significantly higher. Yet, despite this warning from the smartest money, risk assets such as Equities and Crypto have gone higher. Before last week, the market was pricing in for FED rate cuts at the back end of 2023, and a terminal rate of approximately 5.00% to 5.25%. But after last week's data this has all changed.

We're now seeing for the first time this year, that end of year rate cuts are being priced out and the terminal rate is now being priced at 5.50% by June. This indicates to ask that the smartest money is now listening to the FED. It is highly likely in my opinion that the Equities and Crypto markets will soon catch up to this narrative and we'll see them price considerably lower. We've seen this with the move down in the S&P over the last 2-3 trading days."

I still wait for the markets to come down, my opinion on this hasn't changed in the last 4 weeks. But I don't want to sell now all positions since we have really good entries and nothing worse than selling and then the markets to up again. Only setting a new Sell Limit Order for my PLU rewards and realizing some $ETH profits, because the positions sits currently at an average +38%.

Current developments

Currently, the market is quite quiet and also for March, except for the Ethereum Shanghai Upgrade.

Coinbase Layer 2 Protocal “Base”

Coinbase has announced that they will launch a Layer2 on OP. There are no $BASE Tokens, so please don't fall for scams. Testnet has launched and the Mainnet should start in the summer.

The other L1 Chains are now coming under pressure because this project will now massively rely on ETH Utility will be even more important and that's why I need ETH in my portfolio.

Critical notes:

Currently completely centralized
Coinbase could stop the blockchain = censorship
Currently more of a database than a blockchain

Again: Please do not fall for $BASE token scams!

Shanghai Update for ETH

This upgrade is due to arrive in March and promises numerous improvements for the Ethereum network, which should make it more efficient, among other things. One of the most important features of Shanghai: With the upgrade, Beacon Chain stakers can now also withdraw their ETH. Until now, it was only possible to stake Ethereum in the Beacon Chain - but you could not withdraw the coins.

This is to change with the upcoming EIP-4895 - from then on, ETH investors should be able to dispose of their coins again. In addition, Shanghai brings the so-called Ethereum Object Format (EOF). This is a package of five "Ethereum Improvement Proposals" (EIPs). These are intended to make Ethereum more efficient, consistent and upgradeable overall. EOF is the first upgrade in the history of the Ethereum Virtual Machine (EVM) and is considered a big step for Ethereum.

This event may cause price pressure on Ethereum as there is fear that a lot of ETH will now be unstaked. I don't believe in massive drop in the price, but Ethereum may do worse than the rest because of the selling pressure.

Other than that, I don't expect much for March.

How to move on from

Given the current market conditions and the potential for a market drop, it's important to be cautious and reduce risk where possible. One way to do this is by realizing profits from positions that have seen significant gains in the porfolio, such as PLU and ETH.

It's also important to have a long-term view and not get caught up in short-term market fluctuations. While it can be tempting to try to time the market and make quick profits, this strategy is often not sustainable and can lead to losses. So I only do this in small amounts and with a lot of caution.

Instead, focus on building a diversified portfolio with solid projects and set limit orders to buy in at lower prices. For example, buying into Optimism ($OP) will help to capitalize on potential dips in the market.

If you haven't started doing that yet, dollar-cost averaging is always a good idea!

Portfolio updates

New orders

New BUY Limit Order for $OP

Buy 230 $OP @ 2.165 $USDT
Why Optimism? >> see here

New BUY Limit Order for $FLOKI

Buy 5,263,158 $FLOKI @ 0.000038 USDT
Why? Insider Info, but only a small position, since I’m normally not into memecoins

New SELL Limit Order for $PLU

Sell 10 $PLU @ 10.099 $USDT
old orders are still valid

Sell 5 PLU @ 10.97 USDT
Sell 5 PLU @ 11.97 USDT
Sell 5 PLU @ 14.97 USDT
Sell 5 PLU @ 15.97 USDT
Sell 5 PLU @ 18.97 USDT
Sell 5 PLU @ 22.97 USDT

New SELL Limit Order for $ETH
- Sell 0.3 ETH @ 1,690 USDT

Planning to buy ETH back in the next weeks when the markets go down.

Latest transactions

Current state of the portfolio

I am happy with the performance, we are currently at +135% vs BTC.

Summary

In this month's report, I discussed the current state of the crypto market and how recent developments in macro data and bond yields could impact the market in the future. I also provided updates on my public portfolio, including setting new buy and sell limit orders. As always, I urge caution and a long-term approach to investing in crypto.

I hope you have found this market update to be informative and useful. If you have any questions or concerns, please don't hesitate to reach out.

Stay safe and happy investing!

Stefan

Categories: Report

* The content in this report is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Always do your own research! Nothing contained in this video constitutes a solicitation, recommendation, endorsement, or offer by CryptoExplorer or any third-party service provider to buy or sell any digital assets or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.