I know this advice is easier said than done, but don’t be distracted by the price of Bitcoin.
Last Friday we closed at a price of $56,000 and saw the price reach an all-time high during the weekend, but the market decided to pull back. This is a feature, not an error. Remember, Bitcoin is a mature asset, and the market is in a 24/7 price discovery mode.
If you look beyond the chart to see the headlines of the week, you would think that the price will rise sharply.
Tuesday, February 23
In a false downturn statement, Square, the parent company of Cash App, announced the purchase of $170 million worth of BTC and now uses 5% of its reserves for Bitcoin. If it hadn̵
Wednesday, February 24
In order to purchase all satellites forever, MicroStrategy announced the purchase of $1.026 billion in Bitcoin. This headline news caused a sensation on Bitcoin Twitter. MicroStrategy CEO Michael Saylor appeared in the mainstream media to prove the rationality of this move and justify the use of Bitcoin as a necessary treasury reserve asset. Every time he shows up, he promotes Bitcoin memes, which undoubtedly makes viewers question their worldview.
Thursday, February 25
Coinbase announced that its S-1 file will be available for sale on the Nasdaq. This announcement did not foretell any large purchases of Bitcoin, but shared some very interesting insights on Coinbase users and their current BTC holdings.
We understand that the exchange has more than 43 million users who meet the KYC requirements and holds approximately US$130 million in BTC. For a long time, we have been guessing how many HODLers there are, and now we know that Coinbase has 43 million users, our business has fallen into a quagmire. The most troublesome thing is that the name of a company founded in 2012 called BTC has only 130 million U.S. dollars.
But I believe the key message here is Incredibly bullish One week, although the price drop may suggest other circumstances. These are the headlines that further support the idea that the herd is coming, and this time it is led by the agency.
The question you should ask yourself is: What is my personal inventory reserve strategy?