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Bitcoin's volatility is common (with typical price swings around 5%) and is unfortunately influenced by market sentiment and other unrelated economic factors. Weekend trading is often thinner, impacting price movements, and many investors may lack liquidity to capitalise on dips.
Despite this, it's encouraging that entities like Blackrock and Fidelity are actively purchasing Bitcoin, which helps stabilise the market. ETF buyers tend to be more stable and less prone to panic selling due to their long-term investment approach. The one issue here is they do not now own the keys and have handed over this responsibility to a “trusted” 3rd party.
Regarding tariffs, economic theory suggests they hinder free trade, and ongoing negotiations may actually lead to reductions that could benefit global trade. The tariff play could also possibly be a smoke screen for the introduction of a new monetary system linked back to sound money!
With current market uncertainty, now might be a good time to look into Bitcoin strategies, given its scarcity and positive long-term outlook. Regulatory improvements and the SEC's approval of a Bitcoin ETF are steps toward legitimising Bitcoin in traditional finance, potentially reducing risks for institutional investors.
If the U.S. government were to purchase Bitcoin, it could significantly impact market dynamics.
We may still be in a bull market, with typical corrections. Positive regulatory developments and growing institutional interest suggest potential growth in the coming months. Investors should remain mindful of market fluctuations and the role of managed funds in absorbing Bitcoin during downturns.
If you are not ready to hold Bitcoin yourself, an option while you “Study Bitcoin”, is to follow our "platform verified” strategy - Rational Active Allocation. You can do so with as little as £20 per month, knowing that every allocation update we make to accumulate more Bitcoin will be replicated for you. This is a custodial solution aimed at those just starting their Bitcoin journey.
DISCLAIMER
This publication is general in nature and is not intended to constitute any professional advice or an offer or solicitation to buy or sell any financial or investment products. You should seek separate professional advice before taking any action in relation to the matters dealt with in this publication. Please also note our disclosure here
