BTC saw another surge to new highs this week and printed a fresh new ATH yesterday, touching briefly $73,800 on Coinbase, after which a significant pullback followed. I say significant, but in reality, it was just about 6%, taking it down to 68k in a matter of hours.
At this point, the most we can expect from a pullback, is 10-12% at best. I just posted my Crypto Corner newsletter, where I explained how we are in a very different market right now and this is a super-cycle, on unprecedented levels. For the first time in history, Bitcoin marks a new All-Time High 40 days before its halving event and this is not to be ignored.
The fact that we saw a pullback of 6% is actually very normal and doesn’t worry me at all. Such pullbacks are not uncommon, and the bullish narrative, fuelled by ETF flows increasing demand in a limited supply environment, remains strong. Bulls anticipate favourable price movements, while bears brace for negative ones. In fact, in the past bull cycles, we got used to seeing much bigger corrections, 30% and even 40% corrections were occurring frequently throughout the 2017 cycle and less frequently in 2021 (but they still happened).
So, why is it that we only see 5-6% pullback today? What makes this cycle so different, you may ask. The answer is simple. Institutional investors have arrived and they are hungry for Bitcoin – it’s the liquid Gold-rush of the century.
Back in January, we saw the simultaneous approval of 10 spot Bitcoin ETFs and with that, the bulk buying began, which is the catalyst for this price appreciation right now.
In USD terms, Tuesday witnessed the largest single-day inflow in spot Bitcoin ETFs since their inception, with nearly $1 billion flowing in. Surprisingly, these inflows occurred even as the BTC price dropped during Tuesday’s trading hours. It seems that ETF buyers grasp the strategy of “buying the dip.”
Welcome to Bitcoin, Wall Street.
GBTC Outflows:
Grayscale outflows persist, although they are less significant compared to when the ETFs were initially approved. We can expect to see a continued but gradual decrease in outflows as investors move funds to alternative vehicles with lower annual fees.
ETF Holdings:
The total holdings of ETFs now stand at approximately 453,000 BTC, with Blackrock alone holding 228,613 BTC. Few analysts predicted Blackrock surpassing MicroStrategy’s holdings in just two months, indicating that the ETFs were undervalued.
MicroStrategy:
$MSTR has surged 145% year-to-date, outperforming all other assets. With a market cap of $30 billion and continuous growth, $MSTR shows no signs of slowing down since adopting its Bitcoin strategy in August 2020, gaining 1089%.
Michael Saylor’s statement, “I’ll be buying the top forever,” holds true. Shortly after completing an $800 million convertible note offering, MicroStrategy announced another $500 million in convertible notes. The initial offering carries an annual interest rate of 0.625%, allowing Saylor to borrow money at less than 1% interest for Bitcoin purchases. This move is a bold speculative attack, reminiscent of George Soros’s pound-shortening strategy but on a grander scale.
We’re now ~1 month away from the next Bitcoin halving. Here’s how price has performed during each epoch.
- Genesis: +16,733%
- Epoch 1: +5,211%
- Epoch 2: +1,436%
- Epoch 3: +735%
With the 2024 halving right around the corner: prepare accordingly…
☝These are my opinions, not financial advice, always DYOR.
Recommended:
👉 Sign Up for the Crypto Corner Newsletter and get more insight on the crypto markets, new releases and updates, plus my personal choice of coins to trade: https://www.ojjordan.com/crypto-corner
👉 LearnCryptoNow is the go-to place to get valuable resources and learn more about blockchain tech and all things crypto-related: https://www.learncryptonow.com/
👉Brave Browser is my top choice for extra security while browsing online. It is privacy-oriented, web3-enabled and blocks unnecessary cookies and much more: https://brave.com/ojj095
👉Token Metrics is the platform I use for uncovering unknown gems and to monitor my crypto watchlist. They have the most detailed statistics and analysis for all major cryptocurrencies and price predictions to help you find the right coins to trade and the right time to buy/sell – give it a try and get 10% discount: https://bit.ly/token_metrics
Want to know how to make money by investing in crypto?
Grab a copy of my best-selling eBook “Learn Crypto” to find out all about the cryptocurrency market, the different blockchains and the “Do”s and “Don’t”s of how to build a successful crypto portfolio. It’s now in its second edition.Find out more: LearnCryptoNow.com
“Crypto Wallets” is a Free eBook to guide you in choosing the right wallet for you. All the popular Hot and Cold Wallets are reviewed in this useful guide, most of which I personally use, or have used in the past. Self-custodial and custodial services too.
Find out more at: https://www.ojjordan.com/crypto
⚠️ DISCLAIMER ⚠️
The information contained in this video is for informational purposes only. Nothing herein shall be construed to be financial or legal advice. The content of this post reflects solely my own opinions. Purchasing cryptocurrencies poses considerable risk of losses.
Quote Of The Day
“Don’t watch the clock; do what it does. Keep going.” – Sam Levenson Resilience and an unwavering spirit are the companions on the journey…
Quote Of The Day
You’ll never predict every Bitcoin move, and neither will I. But we don’t need to. Mark your key levels. Keep track of your progress.…
Quote Of The Day
Life is precious, so have a laugh more often 😉 “A budget tells us what we can’t afford, but it doesn’t keep us from…
Crypto-Corner 