Buying Bitcoin during a dip (sometimes called a bear market), can cause anxiety or fear, but buying during a dip is the best time to buy!
In November 2021, the price of Bitcoin reached an all-time high of over $68,000, setting the cryptocurrency’s market cap to over $1 trillion. In just 7 months, Bitcoin has plunged nearly 70%, devastating investors and traders around the world. Fear and panic are plaguing the crypto world as analysts debate whether Bitcoin will ever return to its former state.
This isn’t the first time that we’ve seen a sharp fall in Bitcoin’s value, however, as dips and upswings have been commonplace in Bitcoin’s short yet dense history. In December 2017, Bitcoin peaked at nearly $20,000 for the very first time, amidst a cryptocurrency frenzy among investors, institutions, and people throughout the world. Quickly, its value plummeted and didn’t reach previous highs until nearly 3 years later in November 2020. Bitcoin not only returned but surpassed its 2017 highs.
Reasons to buy Bitcoin During a Dip
The primary reason to buy Bitcoin during a dip like this is that the fundamentals and use cases of Bitcoin haven’t changed. Bitcoin is still an incredibly versatile, secure, easy, and popular cryptocurrency. Bitcoin’s price has decreased, but that may be due to external factors like worsening economic markers and disarray in the overall cryptocurrency and NFT market. Bitcoin’s intrinsic value has remained the same, and you might as well pick it up now at a discount.
Bitcoin has been extremely volatile throughout its entire history. Certain periods have yielded extraordinary returns while others have resulted in severe losses. In the long run, however, Bitcoin has seemed to always get back on track and even break previous records.
Bitcoin is also the staple of the entire crypto and NFT market. It is to the crypto world what the U.S. Dollar is to fiat currencies. It is the most popular, most valuable, and arguably the oldest player in the crypto arena, and therefore it has the highest probability of staying in the long term.
Finally, in recent years, many institutions and companies have acquired large amounts of Bitcoin as investments. This provides a layer of security to the future well-being of the crypto as it gives credibility to Bitcoin. Individuals and retail investors are more likely to buy Bitcoin if they know large organizations are doing the same. People like Elon Musk, Jack Dorsey, and Mark Cuban are massive proponents of Bitcoin, and they all have cult-like followings who listen and follow what they do.
All in all, Bitcoin is a safe and lucrative long term investment that will pay dividends in the future.
