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Song believes the Bitcoin dip should be encashed

The volatility in crypto trading is surely nothing new. Recently the crypto market suffered severe setbacks when it faced its maximum volatility over the past few weeks. Bitcoin, the market leader which was standing at $10,500 has now plunged to $7881.99.

Coronavirus fears seem to have gripped the marker as market corrections happened worldwide. Governments have been wreathing under pressure to ensure that the impacts don’t hamper the functioning of the financial markets. It has undertaken various measures like interest rate slash but investors are still shaken with the impact of the novel virus. 

Bitcoin too initially suffered some setback but it had the resilience to bounce back. But now again with fear gripping the investors, people still want to reassure themselves that it is a safe place to invest. Bitcoin in the past also has come out from difficult situation and amidst the brouhaha, it is still expected the BTC will favorable push its indicators back to the original figure. 

With this in the background, Jimmy Song who is the strongest advocate of Bitcoin and also an entrepreneur mentioned that those who did not believe in it and invested further are making a grave mistake they will regret. He believes that every opportunity should be cashed in. Even if there is a dip in the market, people should consider holding more and sell it when they believe that the market has risen. 

Song believes that those people who would buy the dips are in for a great long term strategy. But, people are usually scared of holding cryptocurrencies during these bad phases as their trust is on a thin thread only. Currently, the scoring in the crypto fear and greed index is 16 implying that people have extreme fear. But historic data has calculated that every time the index had plummeted to 20 and below crypto markets has railed back to normalcy. 

This correlation surely doesn’t imply anything logically but if historic data is anything to go by, it means that a new positive horizon is just around the corner. As per the stock-to-flow model, bitcoin might just come back to the golden $10k figure by the end of 2021. But this truly was a great advantage people should have taken to win big in the long term.

Picture Credit – Elevenews

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