The signals printed by Bitcoin recently are hard to read even for the best of traders. The approach to Bitcoin investing is different for all and embodies many of the traditional market techniques. There are those that dollar-cost average, those that buy and sell based on their gut, or predetermined gains they would like to see, you have your panic sellers, many who swear by technical analysis, and more. However, somewhat unique to Bitcoin and cryptocurrency as a whole you have miners and HODLers.
No matter which group you find yourself in, this last month or so has been riveting for all who are investing or even watching from the sideline. Since the massive drop in March, to the high $3000’s, Bitcoin has enjoyed a 60% plus rally to hovering around $10,000 levels. However, during this time, the market has been plagued with confusing movements and news alike.
Post-halving, there was a significant drop in hash rate, or the network strength providers by miners and active nodes, since that time, while the hash rate has recovered, we have seen wild swings in the market, one happening as recent as this week, where the BTC price either loses or gains $1,000 in a matter of minutes. Jason A. Williams on twitter said this week that he believes that the strong miners are forcing the hands of weak miners to capitulate and sell. How that really shakes out is no more than speculation. Anthony Pompliano and Jason A. Williams are partners at Morgan Creek Digital Investments, and have personal and corporate goals of owning 1% of the total Bitcoin supply, or 210,000 Bitcoin. On the note of large Institutional investors, Grayscale Fund has purchased over 1.5 times the Bitcoin mined since the last halving and according to those familiar with the matter, do not plan on stopping soon.
Lastly, within the banking industry, we have a split decision. JP Morgan, after notably bashing cryptocurrency and particularly Bitcoin for years, has decided to change their tone substantially, not only in support of the asset, but also to support the financial transactions and banking for popular U.S. based crypto exchanges Coinbase and Gemini, owned by the Winklevoss twins.
According to a recent Forbes article by Billy Bambrough, Jamie Dixon, CEO of JP Morgan has been having secret meetings with the CEO of Coinbase since 2018. On the other end, Goldman Sachs released a letter to their investors in which they stated they do not suggest any of their clients invest in cryptocurrency and they do not see cryptocurrency and specifically Bitcoin as an asset class. Needless to say, the mixed signals are enough to confuse even the most veteran of traders right now, so many are best off just HODLing until the future is a bit less murky.