Bitcoin commenced March trading at a price of US$61,430 and continued to rally to a high of $69,250 five days later, at which point there ensued a $10,000 price correction. The Katana Program held long positions on all three time-frames going into this retracement. Dynamic stop calculations meant all three positions were stopped out at an average price of $63,200. The average entry price on these long positions was $50,700. The lower prices were short lived as BTC rallied to new highs within three days. Consequent multiple long entries above $70,000 have been stopped out as $73,800 remains solid resistance. Today saw the Bitcoin price correcting by as much as 7% at the lows of the day [$68,500]. Katana performance for the first half of March was -2.18%.

ETF inflows remain strong. The Nasdaq Index is having similar price consolidation issues as Bitcoin.  Funding rates on crypto derivatives have remained stubbornly high in March with some days seeing charges on long positions exceeding 100% on a per annum basis on some exchanges. This points to a seriously lopsided market structure where leveraged long derivative positions far outweigh short interest. This imbalance likely needs to be unwound before we can expect further strength in the Bitcoin price. Today most exchanges are showing funding rates of >50% p.a.  Obviously, there is more work to be done on the unwind of these large long derivatives positions.