Bitcoin -- Buy the Dip?
Investors who have been kicking themselves for missing Bitcoin's (CRYPTO: BTC) run over the past year and a half have a chance for another bite at the apple. With a 53% decline year to date, Bitcoin is now down 67% from its all-time high set in November of 2021 and trading at levels we last saw in December of 2020. During this time, Bitcoin has lost more than $700 billion of value, more than the current market cap of Tesla (NASDAQ: TSLA).
Bitcoin is suffering from the same inflation and interest rate hike fears that have plagued the market, particularly richly valued tech stocks. In addition to these marketwide factors, Bitcoin (and crypto in general) has been hurt by the implosion of Terra (CRYPTO: LUNA) and the trouble at crypto lender Celsius, which just halted withdrawals and transfers of crypto. These platforms pay interest to borrow assets like Bitcoin from investors and then lend them out to generate a profit.
The freeze spooked investors and added the specter of additional selling pressure on Bitcoin as Celsius and other platforms like it could be forced to liquidate their holdings. But when these short-term storm clouds clear, the present may end up being a good time to initiate or add to a position in the largest cryptocurrency.
Source Fool.com
