Up until the first weekend in December, the rise in bitcoin’s value looked to be unstoppable. Some optimistic investors and analysts were even predicting that it would hit $100,000 by the end of the year. But then, over the course of 24 hours its price dropped almost 20%, from $57,000 down to $45,000. Other cryptocurrencies, including Ethereum, followed suit, freefalling in value and sending many frightened investors scurrying for something stable to hold onto. Reasons offered for the drop in value varied, from concerns about the omicron variant of COVID-19 to the claim that it was merely a derivative-induced sell-off.
While the dramatic drop in bitcoin caused many to run, most cryptocurrency experts advise against such action. Will Clemente, an analyst with Blockware Solutions, predicts that the environment is ripe for another bull run next year.
He noted, “There’s a reasonable case that we could see the opposite effect heading into Q1, as funds are willing to take on more risk for the new year with fresh profit and loss.” Many people in the industry are advising investors to take advantage of bitcoin’s lower price to prepare for an upcoming surge that could bring it back to its all-time high of $69,000, a number it reached just two months ago.
Analysts who recommend this approach call it “buying the dip,” likening it to getting the coin on sale. Investors have been using the “buy the dip” strategy for a while, confident that even if it goes down for a time, it’s destined to go back up. So far, that’s held true for bitcoin. Though its performance over the next year will reveal whether it continues to be the case or not.
While there’s been a debate about whether “buying the dip” is a good idea for bitcoin investors, there can be no doubt that now is the best time to begin or expand mining operations. Asicverse has recognized this fact and committed itself to making getting started easier than ever.
“Since the dip, we’ve dropped our prices over 10%,” Asicverse’s CEO, Craig Caruth Jr. recently explained. He went on to encourage interested miners to get on board as soon as possible. “The price won’t stay down forever, and when it rebounds, we could see prices increase by 20% or more.”