After experiencing the most notable dip in the last six months, Bitcoin has been restoring. Bitcoin, which is the largest cryptocurrency in the digital currency market, had tumbled down and ended up with $38,700. For Bitcoin investors, the crash came as shocking since Bitcoin had not seen such lower value within six months. As a result, the entire cryptocurrency market shrank and reached below $1.8 trillion on Wednesday.
Is Bitcoin volatility beneficial?
For many investors as well as economists, the volatility of BTC is a vital concern. However, according to Mark Yusko, the CEO of Morgan Creek Capital Management, the volatility of any cryptocurrency, including the last crash in Bitcoin, is not a big deal. In other words, it is not a threat or enemy on your path.
Volatility is a desirable feature of the market. Upside volatility is something investors always look for, while downside volatility is terrifying. Nonetheless, investors with the fear of downside volatility act upon the expectations and predictions of upside volatility in the long run. In other words, the volatility of the asset is the main reason behind investing. Yusko stressed that if investors hope that their holdings’ value increases excessively every year, the asset they invested in has to have volatility.
Moreover, even though BTC has lost its value, Blockchain activity has been highly active in the past couple of days. Whale Alert, a well-known blockchain tracking and analytics platform, has kept declaring large transactions to unknown wallets. Today at 4:25 UTC, Whale Alert announced a trade of 5,000 Bitcoin with a value of more than $202 million from their wallet to Coinbase. Another BTC whale transferred 2,000 Bitcoin on the same line, referring to more than $82 Million to Binance.
“Buy the dip.”
At the moment, Bitcoin stopped fluctuating and settled into approximately $40,000. Thus, the calls motivating investors to buy more crypto coins to benefit from the dip are in growth. Indeed, the calls are the most dominant discourse of the platforms. Furthermore, Bybt.com, a crypto analytics firm, brought up the declining levels of liquidations in the market since yesterday.
The drop has been discussed through Elon Musk’s tweets trashing BTC. However, the Buy the dip calls on Twitter implies that reduction might be associated with China’s recent ban on cryptocurrency services offered by financial institutions. Though the driving force behind the drop is not clear for all, investors are paving the restoration of Bitcoin and the entire market of digital currencies around the world.Share this article