18# Signal 2 Noise

In today’s issue:

• Bitcoin’s All-Time High

• Bitcoin and BlackRock

S2N Updates

Today is the soft launch of S2N. What does this actually mean?

I plan to keep today’s letter short as I am planning on inviting probably a handful (maybe 2) of people to sign up for the newsletter and provide me feedback. Let me get to it.

Performance Review

Economic News Today

New Signals

There will be more to say here when I revise the signal report.

S2N Insights

Bitcoin’s New ATH

Over the weekend, Bitcoin came within a few dollars of hitting $70,000. I am pretty sure it hit that magic number on some exchanges. I would like to share a clean chart from inception to give you an overall view of the journey, and then I will share a drawdown table and chart to help provide some perspective on how wild the swings have been.

Now, when you look at the pink shading, you can see how Bitcoin has spent most of its life in drawdown (DD). What this tells you is that this ride has been wild. Most of the time, holding this asset has been depressing and stressful. However, the rallies have been so breath-taking that most investors will probably tell you that it was worth the stress. If there is one point I would make here, it is that you should always understand an asset’s personality before investing in it. The 5 biggest drawdowns have been more than 70%, which is hectic.

Bitcoin and BlackRock

I think it is very worthwhile to take note that BlackRock, the biggest asset manager in the world, run by co-founder Stanley Fink, is a major believer in the Bitcoin story. With the kind of interest major institutions are paying this mercurial asset, I would caution people from dismissing it as a fad.

It wasn’t a long time ago that Fink had this to say. In 2017, he called Bitcoin “an index for money laundering”. The SEC approval of the first US Bitcoin ETF in January of this year has definitely been a major catalyst for investors pouring money into this asset. In a couple of months BlackRock is the biggest spot Bitcoin ETF with more than $10 billion under management.

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