Well, after 6 months of absolutely nothing… and the 2000th major news article about the Death of Bitcoin™… the crypto market is showing signs of life…
Bitcoin is up 20% in the past 3 days… critically breaching the $70,000 level not seen since June… and rarely seen since the beginning of the year.
The Bitcoin related stocks like Strategy and the miners are all up overnight off the back of this…
But before the commentators call the start of a bull run… let me pump the brakes and walk through the last week.
The good news is that fundamentally there seems to have been a shift in sentiment on the institutional side… with Bitcoin ETFs seeing over $1 billion in net inflows this week alone… and reversing a pattern of outflows that has lasted most of the summer.
And ANY bull run now has to start on the institutional side…
On the flipside, a lot of yesterday’s huge move was your classic short squeeze setup… and over $3 billion of BTC short positions were liquidated.
(More proof that you shouldn’t try and trade this stuff - you’re up against people far smarter than you)
But the key is now if we can maintain a level above $70,000. Do that and it’s a lot of positive signs ahead…
If not, we’re probably heading right back to the low 60s again.
As always, Bitcoin should be a long term hold (I’ve owned it since 2017)…
And you should either own it directly… or one of the spot ETFs like IBIT if you want exposure inside a retirement account
Strategy is still hot garbage (and STRC is even worse)
And if you want to learn more about my thesis for BTC ownership - you can check out my book The Only Bitcoin Investing Book You’ll Ever Need
Oliver