Perhaps it was a case of selling the news. Bitcoin and other cryptocurrencies didn’t do much of anything following last week’s crypto summit at the White House. When President Trump signed an executive order on Sunday mandating creating a bitcoin strategic reserve, the digital currency tumbled significantly.
The selling extended into Monday. And as bitcoin extended its one-week slide to 12%, trading below $80,000, ETFs like the CoinShares Valkyrie Bitcoin Fund (BRRR) were pinched. However, some experts believe investors are focusing too much on near-term gyrations. They also think the sell-off could prove to be a buying opportunity with bitcoin and funds like BRRR.
Indeed, the YTD performance of the broader crypto complex has been disappointing, particularly when considering President Trump campaigned on being a pro-crypto president. He has arguably attempted to make good on related promises. So bitcoin’s recent weakness could bring a buying opportunity some investors have been waiting for.
BRRR: Rebound Candidate?
Some market participants took the opportunity to trim bitcoin holdings following the president signing the executive order. But bitcoin and ETFs such as BRRR could bounce back. That's due to the longer-term implications of that order.
“The market’s reaction betrays a short-sightedness that will likely be corrected as investors digest the broader implications of the move,” noted deVere Group CEO Nigel Green. “In our opinion, investors should be focusing on that this executive order makes it more likely Bitcoin will be a geopolitically significant asset in the future.”
