Bitcoin experienced remarkable growth, on January 20, it hit an all-time high of 108,786dollar more than doubling its value from the year before. However, the cryptocurrency market is known for being very unstable, so buyers need to be smart about what they do to make the most money. Stephen Weiss, founder and managing partner of Short Hills Capital Partners, recently chose to cash out his investment in BlackRock’s iShares Bitcoin Trust. His move comes at a time when Bitcoins price is losing steam, which has led to rumors that the price might drop soon.
Weiss Sells 20% Bitcoin ETF Position
On CNBC’s Halftime Report, Weiss said that he had sold 20% of his shares in BlackRock’s iShares Bitcoin Trust. Although he wouldn’t say how much he invested or made, he did say that his plan was to sell some of his Bitcoin when the price started to drop. Regular buyers often lock in gains before the market goes down, and this methodical approach shows one way they do it.
In January, the U.S. Securities and Exchange Commission accepted 12 spot Bitcoin exchange-traded funds. At the time, Bitcoin was worth less than $45,000. Since then, much money has come into the iShares Bitcoin Trust. It has now attracted over $55 billion, making it the biggest of the newly approved Bitcoin ETFs.
Bitcoin Market Outlook and Decline
Bitcoin’s value has dropped 7% in the last month, and it is still 11% below its January high point. Weiss said that he was lowering his risk because of this slowdown, pointing out that Bitcoin’s “momentum dies” after sharp rises. Many experts are keeping a close eye on Bitcoin’s price, and some think it will go down even more before it goes up again.
Bitcoins price have been fluctuating between 90,000dollar and $100,000 for weeks. It may drop 10% to $86,000 before finding new support levels. Support levels are important places where an asset’s price usually levels off before starting to rise again.
Conclusion
Tom Lee, head of research at Fundstrat, is still optimistic about Bitcoin’s long-term chances, even though the price has recently dropped. He thinks Bitcoin could reach 250,000dollar by 2025 and doesn’t think short term instability is a big deal. Take advantage of opportunities to make money, like Weiss does, to balance risk and maintain a strong market position.
