Bitcoin opened on February 1 at US$42,500 and closed the month at US$61,000 after peaking at $64,000, just short of all-time highs. In the second half of the month the Katana Program initially closed two losing trades, one long and one short as the Bitcoin price consolidated in a period of subdued volatility around $51-52,000. What followed was again a sharp upward price move into the month end. Katana has been holding a long position established at $43,800 in early February. On a break of $53,000 new long positions were established and whilst the current size of this long position is now somewhat reduced, we remain steadfastly long into month-end. The Katana Program finished February with a return of 35.18%.

Technical indicators are pointing to Bitcoin being seriously overbought with the daily RSI [Relative Strength Index] hitting the 87 level on 28 February. We should expect some level of price retracement in the near future. ETF Inflows remain strong. Recently, macro factors have not been particularly impactful other than the NASDAQ strength underpinning Bitcoin support. We suspect the recent BTC price strength has, to some extent, been a result of speculators front running the expected BTC price appreciation due to the BTC halving.

The current state of multiple debt laden fiat currencies and general geopolitical instability emphasises that a zero exposure to Bitcoin going forward makes little to no sense. Our view is to take advantage of any retracements in price by adding to or considering an allocation to our Katana Program - a risk managed trading exposure to Bitcoin price volatility that participates in price appreciation but also can profit from price shocks / falls.

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At Cutting Edge Capital we recently held strategy discussions in our Sydney office. We are pleased with our performance since inception and remain confident of providing solid risk adjusted returns for our investors into the future. Above is a photo of the team at the recent meeting.

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