Is Now the Time to Buy Bitcoin After Its Dip?

After the approval of 11 new exchange-traded funds (ETFs) to start the year, Bitcoin (CRYPTO: BTC) plummeted about 20% and is down more than 10% from its peak today. In a typical "buy the rumor, sell the news" incident, thoughts that the cryptocurrency's new home on Wall Street will only go higher may be misplaced.

Bitcoin is robust as a bull market looms, despite the downturn (to opponents' dismay). Starting now, any chance to buy Bitcoin as it falls is an opportunity. Here's why

Bitcoin is volatile. In its 15-year existence, it has seen eight 50% drawdowns and three 70% corrections. These pullbacks frequently start bear markets. Even in a bull market, Bitcoin might fall significantly. View Bitcoin's 2021 bull run for proof. Bitcoin dropped more than 20% five times in a week or two before its current all-time high. It dropped 50% in 2021, from $58,940 in May to $29,800 in July. Suddenly, it doubled to roughly $69,000 in four months.

Investors fear Bitcoin's price volatility, but there are valid explanations. Start by remembering that Bitcoin trades 24/7 worldwide. Bitcoin is a worldwide currency without trading hours like stocks. Most trading is leveraged. That implies Bitcoin moves faster and more abruptly as interest rises

Fundamentals hold. Given that Bitcoin has experienced drawdowns even in bull markets, investors should be certain that nothing unusual has happened. Considering Bitcoin's growing fundamentals, optimism that these pullbacks are small speed bumps in its price ascent should grow. Bitcoin is essentially an open-source network for direct user transactions. Bitcoin must become more decentralized, safe, and robust to survive. Luckily, yes.

Hash rate tracks Bitcoin's growth. Hash rate is one of the most essential metrics investors may use to assess Bitcoin's health and computational power. Bitcoin's hash rate is barely below its peak. The network has more miners and nodes than ever, peaking in early January 2024. Bitcoin's computing capacity is 500 times that of the world's most powerful supercomputers. 

The network is becoming stronger, and adoption trends are positive. Count the number of digital wallets having Bitcoin balances. Over 53 million Bitcoin wallets exist now. It's 10 million more names than a year ago and twice as many as five years ago.

Smooth and steady Bitcoin's volatility may appear deceiving and worrisome. The extent and regularity of Bitcoin's corrections, even in bull markets, make its latest drop normal.

Bitcoin may be in its best form ever. Despite its pricing fluctuations, the network's durability and expansion are refreshing. Consider this drop and any future ones as a chance to buy the world's first cryptocurrency at a discount until signs indicate weakness.

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