Thinking Long Term: How this might be the time to buy the dip

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Cryptocurrency markets, apart from stablecoins, are very volatile when comparing to more classical investments. And the rocky start of 2022 for Bitcoin has sent many inexperienced digital currency traders into a selling frenzy. However, experienced investors stick with the currency and fall back on the famous quote by Warren Buffet: “Always invest for the long term”. Well, why exactly that is? Let’s dive in.

Amid the ups and downs, Bitcoin’s current price is a long way off from the latest all-time high of $68,000 that it reached in November 2021. But even with the recent price decline, the apex crypto has still more than doubled in value since just a couple of years ago. Such elastic ups and downs are not news to Bitcoin.

“The most knowledgeable educators in the space are predicting $100,000 Bitcoin in Q1 2022 or sooner,” Kate Waltman, a New York-based certified public accountant who specializes in crypto, told time.com. Currently, experts are still hesitant to name a date, but the recent price dip has not stopped them. “Bitcoin will hit 100,000. It is a question of when, not if”, says Peter Thiel, co-founder of PayPal and Palantir.

Bitcoin Growth Trajectory — Tradingview.

All day trader speculations aside, two things are expected from Bitcoin, (based on the historical data): short term volatility and long term growth. The Graph above displays a consideration to be accounted for when investing in crypto — when an asset has powerful underlying value, growth must be evaluated over longer timespans. And Bitcoin, has historical data big enough to evaluate.

Bitcoin price growth in correlation with the halving process.

The long term trend of bitcoin is clearly upwards headed. Adoption is growing yearly, solidifying its’ position in the market. Bitcoin is algorithmically built to increase scarcity in order to maintain and increase value over time (in the past, all Bitcoin halvings, which happen approx. every 4 years, have correlated with massive surges in bitcoin’s price). And to that extent, it highly corelates with other highly established assets.

Most of DeFi market that DefiThree invests in might still be considered as in its’ infancy, with large scale trust and acceptance still to expand. However, Bitcoin has already matured into a predictable investment asset that should be treated as such. This is why we believe that it is the right call to stick to the pioneer crypto coin when considering your portfolio.