‘Buying the Dip’ in Bitcoin: What of Today?

After weeks of continued underperformance by Bitcoin, Monday, May 29 captures Bitcoin regaining its value from $29,181.40 on Sunday to $31,656 at the time of writing. The figure suggests an upward climb of 7.30% in the past 5 days.

Looking at the Bitcoin trajectory from the past month, it is clear its parabolic drop began on Thursday, May 5, when it swooped to touch $30k. It has been a peaks-and-valleys journey about the $29k mark before taking a noticeable spring to reach the $32k mark missing it by a small $346.60.

While a large number of investors are running losses on their Bitcoin investment, a section of people were readying to buy the dip. Now, some people bought the dip from May 9 to May 29 while others waited for it to drop lower. Today’s spring may indicate a rise, henceforward hold down an oscillating mark.

Also Read: Setting up Your Own Crypto Exchange, the Smart Way

What would investors do today?

Panic. Those who waited for the price to sink lower have been jolted up by about a $1,500 rise. So, those with a mindset of buying Bitcoins would buy today rather than wait for it to climb higher. A lot of people would wait, anticipating a further slump below $29k. They would have a valid argument to do so: nothing significant has happened to cause a northwards climb of the crypto. Well, usually there is something that sparks off a scale.

The war, the economic slowdown, and the financial tightening by the Federal Reserve in an attempt to combat inflation are not factors conducive to the flight of crypto. Hence people who choose to wait still have a good reason to.

Despite the losses, the sinking of the price of Bitcoin offers a chance for more people to be able to hold on to the digital asset.  The digital asset, who knows, may eventually attain stability somewhere in the future to behave as a hedge against inflation.

Also Read: Brazil Exchange To Launch Futures Trading on Bitcoin and Ethereum

Expectations from the Investment

Experts advise that the crypto owners should be fully conscious that the volatility of the crypto won’t go away, not at least for the next few years. The inherently risky asset is just out of its nascent stage and hasn’t been tried in a scenario like we’re currently in. The digital asset would need quite a bit of immunity to exhibit stability under duress.

Therefore it is a wise act to only put in crypto what you can “afford to lose”. Also before spending money on crypto, experts stress the necessity of having a secure personal financial situation alongside a clear investment plan.

Finally

The answer is ‘Yes’, however, with a string of ‘if only’ terms. The dip in Bitcoin is a good time for new and young investors to gain entry into the world of digital assets. It allows investors the education that the technology-backed financial sector is about. Bitcoin is undisputedly the invention of the century. It offers the sort of investment vehicle that the digitally adept Generation Z can warm up to.