Outsized Crypto Selloff Opportunity

This was due to a combination of a weaker-than-expected jobs report, the unwinding of the Japanese carry trade, and specific concerns about a large transfer of Bitcoin by the US government.

The Dow Jones Industrial Average (DJI), Nasdaq (NDX), and S&P 500 (SPX) are each trading relatively flat vs. five days ago, while Bitcoin (BTCUSD) and crypto-exposed stocks like MicroStrategy (MSTR), and Coinbase (COIN) are trading between 9-13% lower​​.

The more pronounced decline in crypto-related names was partly due to speculation that the US government is dumping or planning to dump its crypto-assets it holds from seizure.

This fear is backed by blockchain movements -- a US government-labeled wallet transferred $2 billion worth of Bitcoin to unidentified wallets last week. This move follows former President Donald Trump’s announcement of plans for a strategic national Bitcoin stockpile, which initially drove Bitcoin to $70,000 before the decline

Additionally, the high-beta nature of crypto assets means they are more volatile and sensitive to market changes.

At LikeFolio, we see this outsized move as an accumulation opportunity for long-term investors. Our bullish thesis regarding cryptocurrency, notably Bitcoin and Coinbase has not changed.

In addition, this move definitely shows that Bitcoin is not yet the 'store of value' most wish it to be, as it is still trading more like a high beta tech stock than digital gold.