It appears the market was acting while I was away on Thursday and Friday. It’s not stopped.
Watchers from several industry calls for BTC resilience at the end of last week (compared to US stocks, for example) after the obvious Trump tariffs.
The price of the assets then plummeted.
The BTC price was around $83,000 on Friday, but Tony Greer, a guest on the Forward Guidance Podcast, called for buying “amazing” corporate Bitcoin at all price levels. He also noted their apparent long-term belief in the institution’s ongoing willingness to purchase dip and assets.
The strategy paused BTC purchases last week, but the company purchased 22,048 BTC per coin a week ago at an average price per coin. GameStop recently shut down its $1.3 billion personal offering of convertible senior notes. A portion of your online revenue may be due to your purchase of Bitcoin.
Net spills from the US have remained rather modest since peaking at $1.1 billion on February 25th. About $165 million left those products last week, Farside Investors data shows.
Still, Quinn Thompson of Forward Guidance said:
Fast forward to Friday conversations as BTC prices fell sharply over the weekend. It was whipped in stocks Monday morning, and was about $78,500 at 1:30pm ET.
David Hernandez, crypto investment specialist at 21Shares, noted that BTC is not always surrendering along other risk assets.
“Bitcoin’s actions over the past few days reflect its developing investment papers as a storage for value assets, which can provide an uncorrelated revenue stream at moments of macroeconomic uncertainty,” Hernandez told me.
Now, the market is eagerly searching for signs that Trump could suspend or reverse tariffs earlier on Wednesday. Bitcoin cannot receive tariffs, Hernandez added, “providing potential flights to safety so that other assets succumb to it.”
Joel Kruger of LMAX Group argued that current price levels provide opportunities for compelling accumulation regardless of the underlying fundamentals.
When assessing where “higher and lower” emerged in stocks and Bitcoin, Kruger pointed out two “resistance-turned support” levels. The S&P’s height in 2022 is around 4,800 and the BTC’s $74,000.
“The weekend market turmoil has finally made these key zones work,” he added. “We are currently looking at medium and long term levels that should strongly appeal to both US stocks and Bitcoin investors.”
Hernandez considers it a key level of support to watch $72,000 (post-election breakout start point). Looking ahead, he points to the expected Fed rate reductions that will serve as a tailwind for risky assets.
According to data from the CME Group, the chances of a 25bps cut next month were 36% at noon on Monday.
