Hmmm, well based on history GBTC (and Bitcoin) doesn't just move up and stay up. It swings all over the place, but usually with higher highs and higher lows.
I wouldn't add as it goes up unless you're going to take profits when its higher, which doesn't sound like your style. And I wouldn't add when it dips, because it might dip quite a lot, like down 80%. So I guess its OK to add on dips, if you think a loss of 30% is the "first dip".
The big issue with GBTC right now is it has apparently entered a parabolic price increase phase (just look at da chart). It's similar to what happened in 2017. And we don't know if the up trend is over today, or it has another few months to run. I wouldn't be surprised if Bitcoin hit $80,000 in a few months.
But, since the price increase is so parabolic it could also have a parabolic price collapse (similar to what happened in early 2018), so you're efforts to trade it are exposing you to lots of risk. I'd just sit on your small position, and get comfortable with Bitcoin over the next year or so, and then try to buy a bigger size the next dip, whenever that may be.
For value stocks, I'm usually buying when the stock is dropping
Yes, I get that. But Bitcoin is up ~8x from its 2020 lows, so you're buying during a parabolic up move. Whether the move has weeks or months left on the upward direction, we don't know. But based on history there will be / may be a parabolic down which follows it.
Unless this time is different!!
Personally I have been selling some of my GBTC, but I got in before you. |
