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The Bitcoin price began December trading at 37,750. Within 6 days the price rallied to a high of 44,550, an increase of 18.00%. Our trend following strategy was long through this period and open positions were at that point showing returns of 24%.
An initial sell off saw the algorithm take profits on some of the open positions. Long positions were then re-entered just below new MTD price highs that occurred a few days later [Trend following strategy buys price strength]. A vicious collapse in prices of over 10% from these highs occurred on Monday 11th. All Katana long positions were exited on this price correction. A short position was initiated near the lows of 40,000 and stopped out. Consequently Katana performance stands at +17% month to date.
On Thursday this week we saw the Fed keep US interest rates unchanged. Bitcoin and other risk assets rallied strongly on market perceptions of multiple interest rate cuts occurring in 2024 – 2025. This combined with potential ETF announcements & Bitcoin halving point to continued strong Bitcoin price growth over the next 12 months.
