The following post was issued to TLS members on May 19, 2021.

Crashing cryptocurrency prices are taking a bite out of investors’ portfolios — are the good times over?

Cryptocurrencies are crashing today, with bitcoin down roughly 16% and ethereum down some 27%. After taking considerable profits in recent weeks, this is not effecting our portfolio too much. It is also why we don’t chase prices higher. Now, we can take advantage of others’ fear and panic and buy the dip. Presently, prices have moved lower than we’d like to see as they’ve taken out some potentially key support levels. However, given the emotional trading today, there is a good chance that this is an overshoot and that those levels will be recovered, allowing for a healthy bounce — or even a new up-leg. As such, we added to the following positions near the open:

  • We doubled our bitcoin position, GBTC, near ~29.45.
  • We doubled our ethereum position, ETHE, near ~24.35.

Even if you didn’t get these prices, they are still at attractive risk/reward levels now.

As always, stay tuned to our DSS posts for further developments — they provide the most current updates to our investment portfolio and outlook. We touched on many of these potential moves in today’s DSS.


Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.