Bitcoin: Why I Am Buying This Dip

It hurts when you're expecting Bitcoin's (BTC-USD) price to continue to run higher and it melts in front of your eyes. Welcome to the correction of 2021, in which the world's most valuable digital asset just crashed by a staggering 54%. Nevertheless, while selling pressure has been fierce, Bitcoin is likely working its way through an extensive correction. Moreover, this shakeout process may be creating remarkable buying opportunities in Bitcoin and many altcoins. I bought Bitcoin and several altcoins because following this pullback, the bull market in Bitcoin and the broader digital asset segment should stabilize, consolidate, and return to a positive uptrend.

three round gold-colored Bitcoin tokens

Image Source: Unsplash

What Happened?

Some people believe the meltdown occurred because China recently reiterated its stance on Bitcoin. Other people say it is due to Elon Musk's tweets. Yet, other market participants think that overheated technical conditions are responsible. Clearly, there are numerous moving parts here, and regardless of what you or I think, the digital asset crash probably needed to happen. Bitcoin was up by a whopping 1,800% since its lows just 1-year ago. Many other digital assets were up by 5,000% or more in the same time frame. Coins turned parabolic, the cryptocurrency market got overheated, prices needed to come back down to earth, and they did.

Let's Examine Some Possible Catalysts

China's Communist Party has been against Bitcoin for a while now. In fact, the recent rhetoric essentially reiterates the Chinese government's cryptocurrency bans from 2013 and 2017, but markets are reacting to China's Bitcoin announcement like it is new news. However, from a fundamental standpoint, not much has changed. On the contrary, most of the civilized world remains open to Bitcoin. The digital asset is classified as a commodity, a medium of exchange, a unit of account, or a decentralized convertible virtual currency by numerous nations.

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Disclosure: I am/we are long BTC-USD, VET-USD, ZIL-USD, ETH-USD.

Disclaimer: This article expresses solely my opinions, is produced for informational purposes only, and is not a ...

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