Dollar-Cost Averaging: New Tactics Amidst Bitcoin's Descent
Bitcoin continues its free fall to $61k. In this report, I present more information on the impact of Bitcoin ETFs on the current price crash, what large investors are doing, and a significant update to the dollar-cost average strategy.
Welcome to the BTC Lighthouse report.
Bitcoin continues its free fall to $61k.
In this report, I present more information on the impact of Bitcoin ETFs on the current price crash, what large investors are doing, and a significant update to the dollar-cost average strategy.
🌡️ BTC Lighthouse Temperature
The BTC Lighthouse temperature has retreated to 3.4, clearly in the Neutral zone. If you like Bitcoin in the Greed zone, consider whether you still think it is a significant investment when the price is falling. For new investors, you want to reach a stage where a price drop feels like an opportunity to buy more for the long term.
GBTC Dumping
The GBTC Bitcoin ETF has been dumping Bitcoin at a staggering rate. The fund, which got converted into an ETF, started with 605,000 Bitcoin and is currently at 361,700 Bitcoin.
On 19th March, 7,000 Bitcoin were sold, causing the highest net outflow of 5,000 Bitcoin from Bitcoin ETFs yesterday. This continues to put pressure on Bitcoin's price.
In mid-February, Genesis, a large crypto lending platform that went bankrupt last year, was approved to sell GBTC shares worth $1.3 B. This could be an additional factor contributing to the outflow in the previous month.
The GBTC sell-off has been ongoing since the start. Most days, the inflows in other Bitcoin ETFs absorbed the sell-off. However, the inflows have slowed down due to the increasing price.
Currently, there is a net outflow from Bitcoin ETFs. As you can see below, there have also been net outflows in the past. Whenever there is an outflow, Bitcoin's price has dropped.
This shows that Bitcoin ETF flows are currently controlling Bitcoin's price.
Large Investors
Whales (large investors) are using this opportunity to buy Bitcoin. Since the launch of Bitcoin ETFs, the number of entities with more than 1,000 Bitcoin continues to increase.
Dollar-Cost Average Update
Historical data of Bitcoin cycles suggests that you DCA within days instead of the 28-day strategy I recommended last week.
Conclusion
The current drop is an opportunity to buy Bitcoin in the Neutral zone before the bull run resumes.
Please give your comments and feedback on this report. See you in the next block.
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