Banking system jitters? My Bitcoin went up more than 20 percent in value last week.
Taking a quick break from The Single Best Investment by Lowell Miller to discuss Bitcoin and banks.
Investing is fun right now, and it makes me nervous. With Bitcoin being the only asset in my portfolio seeing any significant growth at the moment, I want to invest more.
Several large banks were closed by governments last week, or in the case of Credit Suisse pushed toward being acquired. At the same time the price of Bitcoin dramatically increased, rising by more than 20 percent.
While I don’t understand the structure of the global banking system well enough to understand if more dominos are going to fall, I do know that investor sentiment seems to show a lack of trust in the traditional banking system.
In many ways, this is Bitcoin’s moment to shine. As centralized banking is rattled, decentralized money, like Bitcoin, can seem more attractive. And when an asset like Bitcoin becomes more attractive, its price increases from $21,500 to $28,000 in a week.
Bitcoin is riding a wave, and I’m getting excited thinking about jumping in to take advantage of the gains to make a quick buck. But then I remember I’m investing for the long term, and not for the short term.
I may still increase my investments into Bitcoin, but that perspective grounds me.
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Let’s take a quick look at how my portfolio has been performing in the past week.
My Portfolio Holdings as of 3/10/23
Apple stock
Rocket Companies stock
Bitcoin
Fidelity 500 Index Fund
Invesco International Small-Mid Company Fund Class R6
Vanguard High Dividend Yield ETF
Vanguard International Dividend Appreciation Index Fund Admiral Shares
Vanguard Mid-Cap Growth Index Fund Admiral Shares
The value of my Bitcoin in dollars increased by more than 25 percent last week. And the price of my other assets barely moved.
Not a whole lot is happening with my stocks and stock-based index funds.
I’m not complaining about this lack of movement in the price of my assets, but I do want to get smarter about how I track my assets and research potentially buying into new ones.
And to do that, I downloaded a trading terminal program, which is what professional asset managers use to manage their portfolios. You can download the program I use for free.
Now I can not only track the movement of the price of an asset over time, but I can track how much the price of an asset went up or down during the day, as well as how much a particular asset was traded on any particular day (called the trading volume).
What I just described is called “technical analysis.” Click this link to watch a short video explaining what it might look like.
I’ll report back next week.
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