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This was the week that was

This week witnessed a rapid decline, leaving many wondering what plummeted faster – Bitcoin or the support for Ron DeSantis? Regardless, both resulted in significant financial losses for some. That being the case, let's not lose hope too soon; both assets have ample time for recovery.

A few weeks ago, we discussed the notion that with the ETF launch, BTC should be viewed as just another financial instrument. Recent events strongly support this perspective.

While we hope for a bright future for BTC, the era of reading speculative blogs about its value skyrocketing seems to be behind us, at least for now.

 

Unfortunately, I missed the recent rally and find myself without any coins. If there's another downturn, perhaps towards $32,000, I'll certainly consider jumping back into the market.

 

There is still another “70 days before “halving” kicks in, which means miners get less fees, and whilst the result of this event, in terms of value, remains uncertain, I would ideally like to buy my coins before March.

 

This week in the UK has been challenging for me, as an older individual who is always cold and suffering from wind. The weather hasn't been kind, adding to the discomfort that comes with age. Despite this, many people seem more optimistic about their future, and I've noticed a decrease in pessimism among those I've spoken to.

 

A return to lower levels of inflation is viewed positively, and stabilizing around 4% would be satisfactory, given the events of the previous year. Few outside of financial markets would be concerned about a quarter-percent change in interest rates, either in the UK or the USA.

 

As we're still early in the year, with many elections ahead, governments are working hard to present a positive spin on their economies. The truth will eventually surface, but in the coming months, I'm slightly concerned about the value of my "saved for a rainy day" Gold.

 

I won't part with the physical gold, but I won't be adding to my holdings anytime soon. I'm contemplating hedging my current position, considering selling futures, buying put options, or, perhaps boldly, selling calls. I want to take action because, if values start to ease, we might see a $200 drop from current levels.

 

Observing excerpts from Trump's campaign rallies, his new mantra appears to be "Drill baby, Drill," likely his approach to controlling inflation. Regardless of personal opinions about him, if our economies are to grow, we need to return to common-sense, lower-tax, less-regulated economies.

 

And If pumping more oil and gas is his “silver-bullet” then I am with him.

 

While the stock markets remain strong due to the success of globalist companies, relying on the Big-Seven isn't the solution. This is evident from the fact that we still feel the need to invest in Bitcoin and Gold for a secure portfolio.

 

As mentioned earlier, it's shaping up to be another peculiar year, and we're just getting started.

 

Last week, we discussed commodities, and since then, there's been increased volatility, with most, though not all, showing robust performances. In a week where profits from buying a bushel of wheat surpassed those from buying cryptocurrencies or EUR/USD, exploring different options might not be a foolish idea.

 

Last week, I advised against buying Cocoa, but unlike BTC, its prices have continued to soar. As mentioned, prices have doubled in just over a year with minimal correction, and this doesn't seem sustainable. To spice things up, I'm investing in out-of-the-money July puts, expecting a reasonable return over the coming months.

 

A bit of extra spice during this cold time of year is always a good idea.

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