I know that this advice is easier said than done, but don’t get distracted by the price of bitcoin.
We closed last Friday at $56,000 and saw the price reach and all-time high over the weekend, yet the market decided to pull back. This is a feature, not a bug. Remember that bitcoin is a mature asset[1] and the market is in price discovery mode 24/7.
If you look beyond the charts and read the headlines from this week, you would think a dramatic price rise would be taking place.
Tuesday, February 23
In a deceptively lackluster announcement, Cash App parent company Square announced a purchase of $170 million[2] worth of BTC that now puts 5 percent of its reserves in bitcoin. If it wasn’t for the insanely bullish headlines from Tesla[3] and MicroStrategy in the past weeks, this announcement might have made bigger waves. Musk set the bar and this move from Square left many Bitcoiners wondering, “What is this, a treasury reserve allocation for ants?”
Wednesday, February 24
In their never-ending quest to buy all the sats, MicroStrategy announced it’s purchase of $1.026 billion of bitcoin[4]. This headline made waves through Bitcoin Twitter and MicroStrategy CEO Michael Saylor made appearances on mainstream media[5] justifying the move and making the case for bitcoin as a necessary treasury reserve asset. Every time he made an appearance, he furthered the Bitcoin meme and no doubt left viewers questioning their worldview.
Thursday, February 25
Coinbase announced it’s S-1 filing[6] to go public on NASDAQ. This announcement did not signal any big purchases of bitcoin, but shared some very interesting insights into Coinbase’s users and its current BTC holdings.
We learned that
