| The Point of No Return For Bitcoin's Price? |
Bitcoin has been struggling.
Last trading just above $85,363, it’s well off its lofty highs.
Unfortunately, there could be more pain ahead if it can’t catch support at around $80,000. In fact, if it breaks below that level, it could test its April low of about $75,000. All as investors grow concerned about meager inflows into Bitcoin ETFs and an absence of dip buyers.
Not helping, there’s still uncertainty about whether the Federal Reserve will cut interest rates next week at all. And, as reported by CoinDesk.com, “Crypto markets were hit with a fresh wave of forced liquidations early Monday as nearly $646 million in leveraged positions were wiped out across major exchanges, adding to the month’s bruising close and extending losses in bitcoin, ether and large-cap altcoins.”
With a good deal of negativity weighing on Bitcoin, it could easily slip even further.
All of which offers us opportunity on the short side of Bitcoin, which we can trade using:
ProShares Short Bitcoin ETF (BITI)
There’s the ProShares Short Bitcoin (BITI), which tracks the S&P CME Bitcoin Futures Index, with profitability computed daily (before fees and expenses) as the inverse (-1x) of the index’s daily performance. Since Bitcoin began to drop in October, the BITI ETF ran from about $16.54 to a recent high of $24.95. Last trading at $24.18, it could test $28.
ProShares UltraShort Bitcoin ETF (SBIT)
We can also look at the ProShares UltraShort Bitcoin ETF (SBIT). With an expense ratio of 0.95% and monthly dividends, the ETF seeks daily investment results that correspond, before fees and expenses, to -2x the daily performance of the Bloomberg Bitcoin Index.
Since October, the SBIT ETF ran from about $23.56 to a high of $51.86.
T-Rex 2x Inverse Bitcoin Daily Target ETF (BTCZ)
With an expense ratio of 0.95%, the T-Rex 2x Inverse Bitcoin Daily Target ETF (BTCZ) seeks daily investment results of 200% of the inverse of the daily performance of spot Bitcoin.
Since October, the BTCZ ETF ran from about $2.30 to a high of $5.02. Now trading at $4.65, it could rally to $6 near term if Bitcoin continues to fall apart here.
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Written by Ian Cooper