For the record, I am huge fan of the future of web 3.0 and decentralized finance (DeFi). I won’t claim to be an expert, I am not. Being a fan means I appreciate something or someone for added value to my life. I am not fanatical nor blind to the shortcomings of the next new, new thing. Therefore, I am not bashing nor endorsing crypto or Bitcoin, I am issuing a timely warning to those caught in the Bitcoin fever. “There is a bit of euphoria in the industry that we now have an ETF but it’s the first step.” Dave LaValle, global head of ETFs at Grayscale is quoted as saying in a FT.com article over the weekend.
Veteran traders watched the ProShares Bitcoin Strategy ETF (NYSEMKT:BITO) hit the market at Bitcoin’s highest demand. Seeing investors speculating for weeks that crypto ETFs would bring a new money into the industry is a warning sign regarding price. Not an indictment of the potential game-changing technology. I, for one, see the market action as a little of “buy the rumor, sell the fact” for cryptocurrencies. Looking at the daily and weekly charts, I am a seller for the short term as of Thursday and Friday’s close of business.
Only time will tell how web 3.0, Defi, and the cryptos will fair. In the short run, I am a seller of Bitcoin, not an active short from Thursday’s close of business. I am not afraid of missing out by taking profits in Bitcoin or any of the other cryptos after Friday close on a weekly chart. Stay tuned.
5 thoughts on “Bitcoin Fever.”