Last year we released an update 5 reasons to consider adding the DCX10 to your portfolio and it's playing out beautifully. Even though 2020 has been quite the rollercoaster ride from a financial market's perspective, things are looking up and we are seeing a classic V-shaped recovery in crypto - this after the Covid-19 induced crash in March.
2020 Year-to-date Performance
Dow Jones: -8.81%
S&P: -3.5%
NASDAQ: 12%
GOLD: 15.7%
DCX10: +32%
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That was only the first half of the year - what can we look forward to for DCX10 for the next few months?
- Let the halvings work their magic. BTC, BCH and BSV all had halvings, and while we did see a price increase in the run-up, it was not parabolic like some had hoped for. History shows that the upward cycle does not start on the date of the halving, but rather a few weeks thereafter. As time passes over the next few months the effects of the reduced daily supply should start to cause more of the intended price benefit.
- Miner confidence. There was speculation that crypto miners would go bust because of the halving(reward halved). We did see a massive drop in BTC hash rate causing concern, but day after day hashrate has returned and the BTC network hashrate is back at an all time high. This confirms without any doubt that miners are still investing in the network (see chart below).
- Institutional crypto adoption: This has quietly been growing. From billionaire investor Paul Tudor Jones going long, to Fidelity reporting “About a third of large institutional investors own digital assets such as Bitcoin”, the flow of funds into crypto cannot be understated. Interestingly $GBTC (An OTC exchange tradable Bitcoin product) has seen more weekly inflows than the number of BTC actually mined. Demand outstripping supply.
A little closer to home: from July you will be able to buy DCX10 through EasyEquities on the Capitec app A great collaboration that will help break down the barriers to getting access to crypto markets - The ever weakening Rand continues: Covid induced lockdown has seen the Rand reach well above R19.30 to the dollar. Talks of IMF loans and an economy on life support has not helped. Since DCX10 is exposed to the top 10 Cryptocurrencies, mainly traded against USD, it likes a weakening Rand and the 22% weakening for the year to date, has given DCX10 quite the boost.
- Ethereum 2.0: Almost every stat and graph concerning ETH is at a 45 degree angle. Over 100 MILLION ethereum addresses were recorded recently. The long-awaited Ethereum 2.0 protocol upgrade, which will change the consensus mechanism to proof-of-stake (PoS), gets closer and is expected later this year. What does all this mean for DCX10 holders? Ethereum is one of the strongest horses in the DCX10 stable with its 80% growth YTD. Check out our update here.
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New to the crypto markets
and want to know more about the DCX 10 index?
Read: Bitcoin halving: what it means
Digital Token FAQs can be found here for even more information
Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Earle Loxton, CEO of DCX Capital (Pty) Ltd as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.