The Katana Program started February with a Bitcoin long position bought at $43,575. This position was only 40% of maximum size as our algorithm detected increased volatility and consequently scaled back the position size. After this position was stopped out on a break of $42,000, there was a period of relatively subdued volatility. Subsequently, a serious rally through $43,500 saw us enter multiple long positions on that breakout. The rally is ongoing having reached a recent high of $52,850. The algorithm has exited two trades at profit while maintaining a core long position.  Month to date performance, as at February 15th, is +16.99% which is pleasing after a difficult period of trading in January.

We are expecting a continuation of the pattern detected in early February characterized by sharp upward price moves following periods of subdued volatility. Continued ongoing ETF inflows and consequent Bitcoin demand will tend to amplify price appreciation.  Bitcoin supply over the next few months will appear relatively scarce as the market absorbs the impact of both the upcoming halving and demand via ETFs. We remain seriously optimistic about the potential for Bitcoin price appreciation in 2024 and fully expect the historical price high of $67,000 to be exceeded.