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  /  cryptocurrency   /  Bitcoin is Burning, but Dip-Buying Investors can Gain Immense Profits!
Bitcoin

Bitcoin is Burning, but Dip-Buying Investors can Gain Immense Profits!

Buy-the-dip strategy can make the Bitcoin crash look profitable for the new crypto investors

The highly volatile cryptocurrency market is experiencing a dramatic fall with the most popular and profitable cryptocurrency, Bitcoin. Crypto investors have lost patience with the Bitcoin crash for a long period of time. The market is tired of seeing red marks on its favorite cryptocurrency. Meanwhile, when almost the whole cryptocurrency market is suffering from this Bitcoin crash, some crypto investors believe in buying the dip to drive substantial profits in their crypto wallets by utilizing this opportunity.

The current Bitcoin price, at the time of writing this article, is US$22,288.24 with a market cap of US$424.36 billion and a volume of US$54.26 billion. The Bitcoin crash has fallen below its realized price since December 2020. But it does not affect some crypto investors who want to utilize this crash for their own benefits in crypto wallets. The question is— is it worth doing the buy the dip in this current situation? The cryptocurrency market has reached the valuation metrics where the price has reached the oversold zone near the rock bottom level.

Bitcoin crash took place in May 2022 post-crash of stablecoins such as Terra Luna as well as TerraUSD. The sudden dramatic fall of the profitable cryptocurrency has caused a huge financial loss in the global cryptocurrency market as well as tech companies depending on Bitcoin. There is a new high in inflation that has instigated the current sell-off in the highly volatile cryptocurrency market.

Long-term crypto investors are in panic mode while shrugging off the extreme drops in the value of the profitable cryptocurrency. Bitcoin is known for losing a quarter of its price value and has reached nearly 70% below its all-time record of US$68k in November 2021. But it is impossible for crypto investors to withdraw tokens and money from popular crypto exchanges. Meanwhile, short-term crypto investors who believe in the buy the dip strategy is satisfied with the fall of the popular cryptocurrency. They want to utilize the moment to invest in Bitcoin for a less amount like US$22k and drive profit in crypto wallets when it reaches an all-time peak in the cryptocurrency market.

Buy-the-dip strategy is very common in the crypto investor community. It means purchasing or investing in a digital asset after the price has declined. Crypto investors hope for potential profit from the profitable cryptocurrency from the future increase of the price. It does not affect crypto wallets when the cryptocurrency market has already faced a tremendous loss of US$60 billion in the two stablecoins in May 2022. It has been speculated that crypto investors will experience crypto winter in the nearby future with the brink of the collapse of all profitable cryptocurrencies. Bitcoin miners have already started reducing their production for the Bitcoin crash while the rise in energy costs is affecting their crypto wallets.

Thus, the Bitcoin crash has been a loss for some crypto investors while it still acts as a profitable opportunity for some who believe in buying the dip.