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Bitcoin Below 30k — Three Things You Need To Know Before You Buy The Dip

It’s with great regret that I report that Bitcoin has fallen below the psychological barrier of 30k. This begs the question: should you buy the dip? 

Covered:

  • Sell In May And Go Away
  • Buy The Dip: Investment In Web3 Still Happening
  • Parallels And Potential Bear Markets

Three Things You Need To Know Before You Buy The Dip

I get it.

Calling this a dip is an understatement. Truthfully, “Three Things You Need To Know Before You Buy The Costco Sized Dip” doesn’t roll off the tongue as well.

That said, comparing it to tubs of spinach dip or hummus doesn’t belie just how long this dip has lasted. Of course, thickness matters, but so does the length. Crypto has been chasing a flying pig yelling, “it’s still good,” for, like, 5 months now? A dip has to stop at some point, right?

It appears that based on a variety of macro factors and some common sense, the end appears nigh. Timing it is going to be impossible of course. So here are three things to consider as you borrow from grandma put together your DCA plan.*

*Not financial advice.

Sell In May And Go Away

I’m sure you’ve heard this one a lot last year as the market caught fire (in the bad kind of way). The idea is that the combination of post-tax season sell-offs and summering in the Hamptons brings tumbleweed to the markets. Surprisingly, I haven’t heard this cliche uttered much this year.

Last year was a good example of the rhyme doing work. Equities rebounded sharply after a rough May, and crypto rebounded at the end of July. Just because it’s catchy doesn’t mean there isn’t at least some truth to it. Is what we are seeing right now across stocks and crypto similar? It’s unclear but worth considering.

Recommended: Bitcoin and Crypto: What Happened? What’s Next?

Buy The Dip: Investment In Web3 Still Happening

This has been true for a while, but it somehow gets more true every time, if that’s even possible. Despite the fact that we basically have watched a top 10 project crumble in front of our very eyes, investment is still happening.

Take, for example, the massive money pouring into Flow Blockchain. The NFT-focused chain got another $700 million USD from venture capital firms like a16z and Greenfield One. Flow was already valued at 7 billion back in September. And that’s not all either. Some recent examples of capital flowing in are play-to-earn platform Moralis (40 million investment) and the pan-African exchange Mara (23 million). There’s a ton of money being willingly thrown around. Meaning, tons of big money investors are betting on this crypto thing having a future.

A Parallel And A Potential Bear Market

One of the widely held beliefs around crypto is that it’s been on a tight four-year cycle based on Bitcoin’s halving. That might not necessarily be incorrect, but we might be seeing a parallel between now and 2018. Back in 2018, when crypto fell off massively, it was understood that it was completely due to the boom-bust cycle. Though, interestingly enough, 2018 was a really bad year in equities as well. In fact, CNN called it the worst year in a decade. 

As you probably know by now, crypto is moving largely in sync with the stock market this year thanks to both investment sectors dealing with a myriad of macro issues. If we are indeed seeing something similar happening to what did back then, then things will ultimately turn out pretty well. CNN remarked that stocks had a “stellar” 2019 after rising 20%. Of course, if this indeed is something other than happenstance it might invalidate the four-year cycle thesis. Though, that would be a very good thing. Imagine waiting another three years for this dip to end?

Recommended: Market Chaos Makes for Mega-Manic Monday

 

The post Bitcoin Below 30k — Three Things You Need To Know Before You Buy The Dip appeared first on CryptosRus.

vhybe

#vhybe #TheSupremeTeam Artist Name: vhybe Who are you? I like to express everything I feel through music, and I feel all over the place. I tend to alternate genres, and I want to create a whole world of songs and albums with different sounds, stories, and feelings. Where are you from? Near the Detroit area.::Listen

#vhybe #TheSupremeTeam
Artist Name: vhybe

Who are you?

I like to express everything I feel through music, and I feel all over the place. I tend to alternate genres, and I want to create a whole world of songs and albums with different sounds, stories, and feelings.

Where are you from?

Near the Detroit area. Not too much going on in my area that sounds like me.

How can we follow you?

https://soundcloud.com/vhybe/lost-vhybe?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing
https://www.instagram.com/vhybe_/

Song Title: lost

Listen to vhybe:

Source: https://supremepr.us/

Bitcoin Below 30k — Three Things You Need To Know Before You Buy The Dip

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