The Fed handed down their decision last week, cutting 25bp. We held off buying Circle until then to see if the prospect of lower rates would have any effect on them.
There wasn’t much of a reaction, at least not to the rate cut decision.
They are down a good 50% from their IPO pop, you could look at the chart and surmise it’s still on the overbought side (Slow Stochastics > 80) but I don’t much care about that.
This morning the stock market looked like it might dump, the futures were off -200 pts before the markets opened, Bitcoin fell to $112K – ETH has dumped nearly 7%.
Wider markets now green as I type this, CRCL red on the day, off $7 and change.
I’m adding them into the portfolio at a 5% weighting. That’s high for an initial add, you shouldn’t buy your entire allocation at once. Three tranches of a third works at the individual stock level too.
To make room, I’m shaving HUT back from 10% to 8.5% – it’s been on fire lately, especially compared to the other miners. I still can’t understand it, so we’re taking a few chips off the table here. Maybe more by the time I get the letter out.
That’ll happen next week, probably Tuesday or Wednesday (Sept 30th or Oct 1st)
That’s it for now.
