To The Moon

🌟🌟🌟Bitcoin has dropped over 8% to USD 53,523 on Friday.  This is below the support base of USD 55,000.  This is now at its lowest price since February 2024. 

Besides Bitcoin, other cryptocurrencies have also dropped.  Ethereum is down 9% and is at its 2 months low as well as Cardano and XRP with losses of more than 10%.

The other negative news was the dumping of long lost tokens from Mt Gox which was a defunct Japanese Cryptocurrency Exchange.  According to media reports, it would return Bitcoin to creditors and spooked selling from leverage players. 

The Federal Reserve has also released minutes from its June meeting which showed officials were reluctant to lower interest rates until additional data shows inflation is moving substantially towards the Feds 2% inflation target.

Higher interest rates are less favourable for Bitcoin and other cryptocurrencies as it dampens investor appetite.

Bitcoin shot up to an all time high of USD 73,700 in March this year after the SEC approved the first US spot Bitcoin ETF.  Since then   Bitcoin has been trading between USD 59,000 and USD 72,000 range. 

I believe that Bitcoin can go below  the next level to USD 50,000 in the short term but it may reverse and rise once Spot Ethereum ETFs are ready for trading. 

Bitcoin and Cryptocurrencies are subject to much volatility but as they continue to gain acceptance globally, I believe that they can continue to rise.  This is a great opportunity to buy Spot Bitcoin ETFs like $iShares Bitcoin Trust(IBIT)$ which is currently down 2.2% on Wednesday. 

The other possibility is to buy $Coinbase Global, Inc.(COIN)$  which is up 3% in the past 5 days.  It is the largest US Exchange for cryptocurrencies and the dominant custodian for the Fund Managers of Spot Bitcoin ETFs.  Just recently Coinbase has signed a contract with the Justice Department 's US Marshals Service to provide custody and trading of its digital assets worth USD 32.5 million.  The US government is the largest holder of crypto at the nation state level, holding over USD 13.8 billion in Cryptocurrency. 

Coinbase' s share price has been on a tear this year. It is currently up 43% year todate and in 2023 it has jumped 187%.

As part of my diversified portfolio, I would be interested to invest a small amount into $iShares Bitcoin Trust(IBIT)$ and Coinbase.   It is much easier for me than to buy into Bitcoin directly.  

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