I'm not complaining as I purchased 2 bitcoins in 2022 at 21K each, near the lows.
However, is something wrong with the bitcoin markets. I figured this would happen because those ETF's need to use exchanges to purchase coins and how is coinbase going to have the liquidity to deal with the current ETF demand.
What do you think, is there a liquidity crunch and it makes sense to sell now because sellers will come in soon to take advantage of these high prices? Or does it make sense to just hold at this point?
If I was a trader I would look at things like this:
Actual: -$42k
Paper: +$84k
Cost Basis: $21k/BTC
if BTC dies you are $42k down, if it goes to $1million. You still haven't taken profits but you have $1.96m on paper.
If you sell 1:
Actual: +$20k
Paper: +$42k
Cost basis: -$20k/BTC ie
if BTC dies you are $20k up, if it goes to $1million, you missed out on $979k. But you have already taken $20k and have £979k on paper
You have to bet to make money, but if you go broke you have no stake.
Not financial advice but reducing cost basis is one of my favourite risk mitigation strategies.