00:00 Speaker A
First of all, let’s go. Bitcoin rose 7% in its best week since March as concerns over U.S. inflation eased.
00:09 Speaker A
I don’t really buy the back half of this title. Everyone wants to tell the story of why Bitcoin is rising. So first of all, let’s be honest.
00:17 Speaker A
It bottomed around 58 and we are now trading at 60. This is not much of a point to celebrate. We are still in roughly the same range, trading around the 200-week moving average on the weekly chart.
00:30 Speaker A
And as always, you know, Bitcoin has hit 64,000 and crypto Twitter has already gone from “it’s over” to “we’re totally back,” which historically is exactly the moment when the universe gets a folding chair and WWE slaps it right in the back of the head.
00:46 Speaker A
So it’s hard to worry too much. Now I will say that I am impressed that the market has responded so incredibly well to Sailor’s sales.
00:58 Speaker A
So yesterday we apparently reported that he sold $216 million worth of Bitcoin. Of course, these are bitcoins that he bought high and sold low. We may call it tax loss harvesting, but everyone knows it is not a good investment or trading strategy.
01:13 Speaker A
But what it did do was cover three months’ worth of dividends on all of its preferred offerings with one sale, proving to the market that by selling less than half a percent of its bitcoins, it could cover its obligations for an entire quarter, and I think the market liked that.
01:29 Speaker A
STRC went up, MSTR went up yesterday. Bitcoin also rose yesterday.
01:37 Speaker A
And I think there’s a bigger story here: Not only is he proving that he can fund the dividend by selling a little, but the market has absorbed the worst-case scenario, which was that Michael Saylor would start selling, or even that Michael Saylor would stop buying.
01:53 Speaker A
So I think it’s really interesting to see the price action after that and it’s very encouraging. Just to show you that BTF Bitcoin BTC ETF is flowing right here.
02:06 Speaker A
You can see all these months right here, uh, all these days, sorry, in parentheses: negative, negative, negative, but last Thursday the flows were 223 million and yesterday the flows were 265 million.
02:18 Speaker A
So perhaps things are starting to change. I think it’s too early to tell, but there is clearly some cautious optimism in the market.