I know this advice is easier said than done, but don’t get distracted by the price of bitcoin.
We closed the last Friday at $ 56,000 and saw the price hit its biggest high on the weekend, but the market decided to retreat. This is a feature, not a bug. Remember that bitcoin is a mature asset and the market is in 24/7 price discovery mode.
If you look beyond the charts and read this week’s headlines, you would think that a dramatic price increase is taking place.
Tuesday, February 23
In an apparently lackluster announcement, Square, the parent of the Cash App, announced a $ 170 million BTC purchase that now puts 5% of its bitcoin reserves. If it weren’t for Tesla and MicroStrategy’s insanely optimistic headlines in recent weeks, this announcement could have caused bigger waves. Musk set the standard and this change from Square left many Bitcoiners wondering, “What is this, an allocation of treasure reserves to ants?”
Wednesday, February 24
In its never-ending quest to buy all sats, MicroStrategy announced the purchase of $ 1.026 billion bitcoins. This headline messed with Bitcoin Twitter and MicroStrategy CEO Michael Saylor made appearances in the mainstream media justifying the change and defending bitcoin as a reserve asset of the necessary treasure. Each time he appeared, he promoted the Bitcoin meme and no doubt left viewers questioning his worldview.
Thursday, February 25
Coinbase announced that its S-1 order will be made public on NASDAQ. This announcement did not signal major bitcoin purchases, but it did share some very interesting insights about Coinbase users and their current BTC assets.
We learned that the exchange has more than 43 million KYC-compliant users and maintains approximately $ 130 million in BTC. We have long speculated on how many HODLers there are out there, 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 has only $ 130 million in BTC in its name.
But I believe that the main information here is that this was a incredibly optimistic week, despite price drops that may suggest otherwise. All of these are 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 treasury reserve strategy?
