I know this advice is easier said than done, but do not get distracted by the price of bitcoin.
We closed at $ 56,000 last Friday and reached the price high over the weekend, but the market decided to pull back. This is a feature, not a mistake. Remember that bitcoin is a mature asset and that the market is in price discovery mode 24/7.
If you look beyond the charts and read this week’s news, you would think that a dramatic price increase would take place.
Tuesday 23 February
In a fraudulent faint announcement, Cash App’s parent company Square announced a $ 170 million purchase of BTC, which now puts 5 percent of its reserves in bitcoin. If it weren’t for last week’s insane headlines from Tesla and MicroStrategy, this announcement might have made bigger headlines. Musk set the bar and this move from Square made many Bitcoiners wonder, “What is it, a treasure chest reserve for ants?”
Wednesday 24 February
In their never-ending quest to buy all the kit, MicroStrategy announced it was buying $ 1.026 billion bitcoin. This headline made headlines through Bitcoin Twitter and Michael Saylor, CEO of MicroStrategy appeared on mainstream media justifies the move and makes the case for bitcoin as an essential treasury reserve asset. Every time he made an appearance, he promoted the Bitcoin meme and no doubt viewers questioned their worldview.
Thursday 25 February
Coinbase has announced that the S-1 submission will be announced on NASDAQ. This announcement did not indicate any major purchases of bitcoin, but shared many interesting insights about Coinbase’s users and its current BTC holdings.
We learned that the exchange caters to over 43 million users who meet KYC and own approximately $ 130 million in BTC. We have long speculated about 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 puzzle is that a company founded in 2012 has only $ 130 million in BTC.
But I believe the most important information here is that it is a incredibly bullish week, despite price declines that may suggest otherwise. These are all great headlines that further support the idea of the herd coming and this time it is led by institutions.
The question you need to ask yourself is: What is my personal reserve strategy for treasury?
