I know this tip is easier said than done, but don’t be distracted by the bitcoin price.
We closed last Friday at $ 56,000 and saw the price hit an all-time high over the weekend, but the market decided to pull back. This is a feature, not a bug. Remember that bitcoin is a mature asset and the market is in price discovery mode 24 hours a day, 7 days a week.
If you look beyond the charts and read this week’s headlines, you would think a dramatic price spike would be taking place.
Tuesday February 23
In a deceptively lackluster announcement, Cash App’s parent company Square announced a $ 170 million worth of BTC purchase that now places 5 percent of its reserves in bitcoin. If it weren’t for the incredibly bullish headlines from Tesla and MicroStrategy in recent weeks, this announcement could have made bigger waves. Musk set the bar and this move by Square left many Bitcoiners wondering, “What is this, a treasure reserve allocation for the ants?”
Wednesday February 24
In its never-ending quest to buy all the sats, MicroStrategy announced the purchase of $ 1.026 billion bitcoins. This headline made waves through Bitcoin Twitter and MicroStrategy CEO Michael Saylor made appearances in major media justifying the move and defending bitcoin as a necessary treasury reserve asset. Every time he appeared, he promoted the Bitcoin meme and no doubt left viewers questioning his world view.
Thursday February 25
Coinbase announced that its S-1 filing will be made public on NASDAQ. This announcement didn’t signal large bitcoin purchases, but it did share some very interesting insights about Coinbase users and their current BTC holdings.
We found that the exchange has over 43 million KYC compliant users and has approximately $ 130 million worth of BTC. We’ve long speculated how many HODLers there are, and now that we know that Coinbase has 43 million users, we have a line in the sand. The big problem is how a company that was founded in 2012 only has $ 130 million worth of BTC to its name.
But I think the key information here is that it was a incredibly optimistic week, despite price drops that might suggest otherwise. These are all massive headlines that further support the idea that the herd is coming, and this time it is being led by institutions.
The question you should ask yourself is: What is my personal cash reserve strategy?