Additionally UST, the algorithmic stable coin of the Terra blockchain, has collapsed in May 2022. This implosion has brought down the entire cryptocurrency market and at the same time caused the disintegration of the Terra ecosystem.
While recent developments have created a lot of pain for existing investors they also created opportunities for new investors. This all came at a time when BitBull Capital was launching its new Alpha Fund. Yet many people remain hesitant whether now is the right moment to invest while the market appears to be still tanking?
Is this the Right Moment to Get Exposure to the Cryptocurrency Industry?
Since Bitcoin is still the industry’s oldest and most valuable asset it is worth studying the price performance of Bitcoin in order to assess the health of the cryptocurrency market. There are several indicators that are telling us that Bitcoin specifically and crypto assets in general are currently cheap:
- Realized Price: The realized price of Bitcoin represents the average cost basis of all Bitcoin that were bought. The value of the realized price has historically marked the bottom of Bitcoin bear markets. As of May 2022 the realized price of Bitcoin is at 24,000 $, a price level that was almost revisited during the May 2022 sell off. Every Bitcoin that is purchased close to its realized price is relatively cheap.
- Logarithmic Regression Bands: The growth trajectory of Bitcoin can be modeled based on a logarithmic trendline. While counter intuitive to most investors, historically it has been a good time to buy crypto assets while Bitcoin was below its logarithmic trendline. Bitcoin trading below its logarithmic trendline has generally correlated with a bearish market sentiment. Based on its logarithmic trendline Bitcoin in 2022 is in its fair value zone and many of the altcoins are historically cheap. Based on logarithmic regression analysis 2022 seems to be one of the best years to start accumulating crypto assets.
- Extended Consolidation Period: Bitcoin prices are consolidating since March 2021 without significant new all time highs. The longer the consolidation period lasts the more space is created for future price exploration.
While most investors are tempted to purchase their crypto assets during hype periods historically it is during the bear markets when long term investors were able to obtain the most profitable buying opportunities. Investors with a low time preference have the chance to gradually enter the market and keep their position until the market sentiment eventually turns and returns are coming back.
Introducing the BitBull Alpha Fund
The BitBull Alpha Fund is the latest addition to BitBull’s exclusive portfolio of funds targeting the cryptocurrency space. The fund draws from the experience that BitBull obtained managing its fund of funds which is investing in ten different crypto funds. The minimum ticket size for the Alpha Fund is 100,000 USD and liquidity can be withdrawn quarterly with a 60 days notice period. The fund is directed at accredited investors only.
The BitBull Alpha Fund was launched very recently at the beginning of 2022. The advantage of the Alpha Fund is that through its active management it is managing downside risks while still allowing investors to participate in the massive upside that can be obtained in the digital assets space. Furthermore, the Alpha Fund invests in private deals that are not yet available to public retail investors.
|Asset||January 2022||February 2022||March 2022|
BitBull Capital believes that blockchain technology is one of the most significant innovations in our lifetime. The technology represents the next iteration of the internet and comes with a tremendous growth potential for the decade ahead. It allows for recording units of value on a public ledger and making them programmable and interoperable at the same time. It also promises a future in which individuals have a chance to regain control over their personal data as opposed to the current legacy web 2.0 that is controlled by large centralized corporations.
There is a broad range of use cases that drive the adoption of blockchain technology such as digital payments, electronic store of value, internet money, interest bearing assets, decentralized finance, verified online communities and gaming. So far only a fraction of these use cases have come to fruition signaling the early stage of the cryptocurrency space and the tremendous growth potential that lies still ahead.
While the price of digital assets has fluctuated dramatically over the past decade there is no doubt that in the background the infrastructure for enabling blockchain based use cases is getting built. For these reasons BitBull capital believes that there is still a tremendous opportunity ahead for investors to allocate towards the digital assets space in order to participate in the disruption that is yet to come.
Through the active fund management of BitBull capital investors are able to obtain above market returns even in difficult market conditions. Additionally, investors can benefit from BitBull’s network and experience that was built through operating in the cryptocurrency space for half a decade.
If you are interested in learning more about our funds please schedule a call here.
Disclaimers: Performance information is provided for informational purposes only. Past performance of the management team is not necessarily indicative of future results, and there can be no assurance that any projections, targets or estimates of future performance will be realized. Actual performance of the Fund may vary substantially from the performance provided on this Website. An investor may lose all or a substantial part of its investment in the Fund. Careful consideration should be given to any performance data provided herein. Fund returns are calculated net of expenses. Investments are subject to fees that includes the management fee, custody charges for holding the fund’s assets charged by the custodian, and customary fees and expenses of the fund administrator and auditor.
The performance of the Fund will be reduced by any and all applicable fees or expenses charged to and by the Fund, which could be more than the fees and expenses incurred with respect to investments held by the Manager. Performance returns of the Fund may be materially less than that of the Manager. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.