ANDIKA BULLETin 29 FEB 2024

Well that escalated... and de-escalated quickly... but in the end, bitcoin was best...

Bitcoin rallied a stunning 13% to with a few bucks of USD$64,000 before a wave of selling pressure appeared (seemingly from perp futures) and triggered Coinbase chaos, wiping out $5,000 of the gains before bouncing back up again. By the end of the US equity trading session, bitcoin was at USD$60,000, still up 6%...

As ETF net (in)flows have accelerated remarkably in recent days...

And BTC ETF volumes have exploded, driven mostly by trading activity in Blackrock's IBIT...

And then you have this HUGE news...Fidelity Investments, with its colossal $12.6 trillion in assets under administration, is now recommending that the traditional 60/40 portfolio model should evolve to include a 1-3% allocation to crypto, specifically through its spot Bitcoin ETF (FBTC - The 3rd largest Spot ETF).

Fidelity now creates blueprint portfolios with 1-3% crypto.

The traditional 60/40 portfolios are now 59/39/2 and this could mean massive inflows into Bitcoin.

Keep in mind that gold hasn’t broken into the 60/40 portfolio in a meaningful way, so I think blowing past the USD$12T mcap of gold by a good multiple over time is a no-brainer for BTC.

Away from crypto, US stocks were lower led by Small Caps and Nasdaq today. Most of the selling pressure hit at the European open (and we bounced back into the European close), but those bounce gains wouldn't hold. The Dow ended the day as the least ugly horse in the glue factory...

USD up (AUD down) and Gold Up, while Oil was down a little.

Finally, about that 'strong US consumer' - The Credit Managers' survey shows that the rate of rejections for credit applications and the number of accounts moved to 'collections' is surging back to near GFC levels...

How the hell will all of these struggling Americans afford the USD$20 a month for a chatbot to tell them that the founding fathers were fat, black, lesbians?

Happy Thursday!

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