The past few weeks have seen Bitcoin stall in the $9,000s as bulls have failed to maintain the pressure they applied starting after March’s crash.
With the indecision in the cryptocurrency market and global markets more broadly, investors have been deliberating purchasing BTC in the $9,000s or waiting for a retracement to “buy the dip.”
According to a prominent executive and fund manager, accumulating at these prices or a bit lower doesn’t matter when viewing Bitcoin with a macro lens.
Related Reading: Bitcoin Hash Rate Recovers to Pre-Halving Levels, But a Chinese Mine Just Burned Down
Short-Term Bitcoin Scalping Is a “Distraction” And Is Dangerous
A hedge fund manager and the CEO of Bitcoin mining startup Blockware Mining, Matt D’Souza, recently remarked that the game for Bitcoin investors should be accumulating, not timing each short-term move:
“Buying at $8500 vs $9300 has 0 relevance when the objective should be capturing a market cycle over the next 18-36 months that could print $20,000, $50,000 or $100,000+.”
D’Souza is touting the long-held narrative of Bitcoin maximalists “not to trade, but HODL.” The idea goes that due to BTC’s volatility, it is better to dollar-cost average into your investment rather than trying to predict every 5-10% swing to maximize your gains.
As the prominent executive added:
“Short term scalping is a distraction, it’ll lead to missing the big move. The real money is made in the sitting. […] Holding coin is critical, dollar cost averaging smoothens your cost basis”
The Start of a Massive Rally
D’Souza’s comment was predicated on the sentiment that Bitcoin will rally exponentially in the coming years. Fortunately, there are prominent names in the cryptocurrency market and in broader financial markets that are betting on long-term upside in the BTC market.
As reported by NewsBTC, Blockstream CEO Adam Back told Bloomberg earlier in June that he thinks Bitcoin will hit $300,000 within the next five years.
The prominent executive attributed this comment to the sentiment that the trillions of dollars being injected in the economy will likely boost the scarce Bitcoin while other assets, like real estate and bonds, are relatively overvalued.
Bloomberg’s Mike McGlone is also bullish. The senior analyst at Bloomberg Intelligence wrote that Bitcoin could reach $20,000-28,000 in 2020 due to a confluence of macro factors.
A Short-Term Correction Is Surely Possible
That’s not to say that a short-term correction isn’t possible though.
As reported by NewsBTC previously, ByteTree founder Charlie Morris said that a number of on-chain statistics are showing that Bitcoin is primed to drop lower:
“1-week network velocity down to 454%, 5-wk 556%. Tx value down, av tx size down, fees down, MRI shot to pieces. Why the lack of interest? Can’t see price holding up. Fair value <$7k,” Morris wrote.
#bitcoin on chain stats are dire. 1 week network velocity down to 454%, 5wk 556%. Tx value down, av tx size down, fees down, MRI shot to pieces. Why the lack of interest? Can’t see price holding up. Fair value <$7k. https://t.co/5O82LldYl6
— Charlie Morris (@AtlasPulse) June 14, 2020
Related Reading: Crypto Tidbits: Bitcoin Fails at $10k, Ethereum Coins Explode, Coinbase Looks to Add 18 Altcoins
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Price tags: xbtusd, btcusd, btcusdt
Buying Bitcoin at $8k or $9k Won’t Matter in 2 Years: Fund Manager Explains
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Author: Nick Chong