$CleanSpark, Inc.(CLSK)$ $Marathon Digital Holdings Inc(MARA)$ $Riot Blockchain, Inc.(RIOT)$
Again guys, KEEP CALM when pre-market trading opens yah. Healthy pull-backs are normal for us to soar even higher than before. Remember that we are heading for HIGHER HIGHS AND HIGHER LOWS. Do not sell off at a loss. HOLD. We will bounce back higher each time. Friends who have sold off will find it harder and harder to re-enter the market as prices are on an upward soar.
Some reasons why Bitcoin / mining stocks may be volatile towards end of the year, with points 1 and 2 contributing to a slight downtrend and points 3 to 5 contributing to an uptrend:
1) Tax considerations - Investors may be adjusting their portfolios for tax purposes at the end of the year. Actively selling or buying to record advantageous tax losses or free up cash to pay tax obligations.
2) Low Trading Volume - Many traders and institutional investors are away on vacation, leading to lower trading volume, which can result in exaggerated stock price movements. Prior to being away, some may lock in some profits first, hence the sudden decline. Some may join in the 'take-profit-already-wait-and-see' game to have a feel of what market sentiments are like. However, if you have conviction in Bitcoin, then HOLD or use every opportunity to buy in and don't look back. No one can time the market perfectly.
3) Holiday Optimism - The general optimism and good cheer around the holiday season might make traders more bullish.
4) Window Dressing - This refers to the practice where fund managers add well-performing stocks to their portfolios at the end of the year to improve the appearance of year-end reports.
5) Anticipation of the January Effect - This is another seasonal trading pattern where stocks, especially small caps, tend to perform well in January. Some investors might buy stocks in December in anticipation of this rally.
Adding on, recent developments suggest a potential upswing in Bitcoin's future price, with major investment firms such as Blackrock, Ark, and Grayscale engaging in discussions with the U.S. Securities and Exchange Commission (SEC) regarding Bitcoin ETFs. According to Reuters, U.S. SEC officials met on Thursday with representatives of at least seven companies hoping to launch exchange-traded funds (ETFs) tied to spot bitcoin early in 2024, and told at least two to submit final changes by the end of next week, according to public memos and two people familiar with the discussions. Among those holding discussions with the Securities and Exchange Commission were representatives from BlackRock and Grayscale Investments, as well as ARK Investments and 21 Shares. The SEC is due to decide whether to approve or reject the joint proposal from ARK and 21 Shares by Jan. 10. Most issuers expect the SEC will likely give the green light to several applications at the same time in the days leading up to that deadline. Executives from two of the firms that met with regulators -- speaking on background because of the confidential nature of the discussions -- said the SEC set a deadline for final updates to their filings of Dec. 29. Regulators told attendees at the meetings that any issuer that doesn't meet that deadline will not be part of a first wave of potential spot bitcoin ETF approvals in early January, both executives said. Representatives of the exchanges on which the new products might trade, including Nasdaq and Cboe, as well as lawyers for the issuers, also attended the meetings, according to meeting memos. In recent months, there have been increasing signs that regulators are prepared to sign off on at least some of the 13 proposed spot bitcoin ETFs. Some say the catalyst was a federal appeals court decision in August that the SEC erred in rejecting Grayscale's proposed conversion of its trust into an ETF. The two executives who participated in Thursday's meetings with SEC officials said the agency indicated it could grant approval in the first few business days of 2024. Regulators would do so by informing issuers directly of what date their request to launch the ETF would be "effective;" each proposed ETF could be rolled out on that date.
These discussions could lead to a crucial breakthrough for Bitcoin ETFs, broadening the market access and potentially invigorating Bitcoin's appeal to a wider range of investors.
Despite the current dip, these ongoing negotiations, the likelihood of the SEC approving a spot Bitcoin ETF in the near future and Bitcoin halving offer a beacon of optimism for Bitcoin's significant value recovery.
Let's reach for the moon and stars together, tiger mateys! Cheers everyone! đť đ
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