Why You Shouldn’t Be Worried About The Recent Bitcoin ($BTC) Dip

Just recently, bitcoin experienced a sudden yet impactful dip in price, falling around 40% in comparison to its all-time-high in November of 2021, where it peaked at almost $70k USD. Over the years, and especially in recent times, many have been speculating on Bitcoin’s eventual fall from grace, and these sentiments are now ringing as strong as ever. We however, are firm believers in bitcoin’s long-term value, as well as that of crypto and blockchain technology in general, and believe you shouldn’t be worried about this recent dip in price. Here’s why: 

Big Institutional Money

Influential companies and even government organisations have been invested heavily in bitcoin for some time now, meaning that any cryptocurrency with big institutional money behind it is much more likely to succeed in the long run. One of the most notable examples is the government of El Salvador currently holding more than 1800 bitcoins, and passing laws that are helping integrate bitcoin into its economy and financial institutions. Additionally, the Commonwealth Bank of Australia (CBA) recently announced plans to become Australia’s first banks to allow users to buy, trade and sell cryptocurrencies through their network, a truly revolutionary decision in the larger scheme of things. This shows an appetite for the tech amongst those with deep pockets, including billion dollar organisations with a vested interest for bitcoin to win.  

Fundamentals and Utility 

The fundamentals and utilities of bitcoin, and many other cryptocurrencies in general, are what truly gives them that much long-term potential. With bitcoin, a thing of large importance is its scarcity. With a supply limited to 21 million bitcoins, the cryptocurrency has oftentimes been compared to gold since they share similar characteristics. Additionally, bitcoin has a strong potential to solve peer-to-peer transfers of monies for many people around the world. It is estimated that 1.7 billion people around the world are lacking access to banking services. In comparison to the traditional financial framework, bitcoin allows easy, anonymous and instant peer-to-peer payments through digital wallets, something of immense value in the long-term. 

History 

When in doubt, zoom out. Bitcoin’s continuous adaptation for more than 10 years now has only helped it rise. Whether this current dip signifies the start of a bear market, or is just another sign of the cryptocurrency’s intense volatility, it’s clear that bitcoin isn’t going anywhere in the immediate future. Just in the last 10 years bitcoin has existed, it has produced a return of almost 280,000%. Will this upwards trend continue for the next 10 years? Only time will tell, but we definitely believe so. 

Chart Analysis

No matter which way we look at it, if bitcoin’s 12 year history is any indication of its future, we should still see an upward trend long term. On one hand, bitcoin might be entering a 2-3 year bear market in which it’s next all time high would be in the next bull run, around 2024 that would see it’s rise continue. Another alternative scenario is that we are entering a “super cycle” in which we see a long term, more gradual upward trend, signifying a breakaway from bitcoin’s chart history. 

The short term of bitcoin is unknown, however the long term future remains optimistic. Jirayut Srupsrisopa, CEO of Bitkub Capital Group Holdings, Thailand’s largest digital asset exchange believes we will see a “golden period” in 2024-2025, which based on past trends is when the next bitcoin bull run is expected to occur. In the same breath, he also adds that there may be some choppy waters to contend with before we see this period. 

Please note: the contents of this article are not intended as financial advice.

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