Date: 26th January 2023
Just a quick update on the state of the fund.
As you may have noticed, Bitcoin has been trading upwards in the last two weeks.
Given that numerous long term technical indicators are all suggesting that a local market bottom is in (at around $15,700 in November) it is tempting to believe that we have bought a significant chunk near the bottom, which is the ultimate goal.
However, no one can predict the day-to-day or month-to-month swings in Bitcoin to that degree of resolution and so I have not fully allocated yet, in the hope of a “flash crash” or black swan event that causes the price to temporarily dip lower.
We have however continued to cost average in, as per the thesis and have now allocated 65.71% in to Bitcoin.
The remaining 34.29% has buy orders set at technical price levels which could (although I don’t expect to) be hit.
The buys that we have made so far are in profit but in my view it is *way* too early to consider selling any portion to take profit due to the nature of the Bitcoin cycles. We are looking for a large, sustained, longer term move before considering taking profits.
I think the first objective will be to take everyone’s initial stake out and still be left with a nice Bitcoin position, but this will (hopefully) happen much later in the cycle.
Any questions, just ask!
All the best,