A Historic Buying Opportunity for Bitcoin?

I wholeheartedly believe that the latest Bitcoin crash presented a buying opportunity. It's not just me who believes in this way, according to experts from Bitwise and Real Vision, it is an opportunistic case. The crypto market has long been known for its volatility, but what happened over the weekend was extreme.

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Now, taking the date of March 12, 2020, one can see how the same forces are at work. Dow Jones faced its worst sell-off since 1987, Bitcoin tumbled 37% in one day, and so forth. However, subsequent months resulted in Bitcoin reaching unprecedented heights before touching $64,000 within a year. Much of it was due to central banks responding with lower interest rates and quantitative easing.

I don't really feel this crash in Bitcoin price is attributed to any type of fundamental change within Bitcoin itself. Rather, it's a reaction to some bad news from Japan on the macro front and Jump trading having liquidated hundreds of millions in crypto. Setting the stage for the almost guaranteed 0.5% interest rate cut by the Federal Reserve in September, with some even expecting an emergency meeting before.

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The key to what happens next in the market lies in the Federal Reserve's reaction. If they do lower interest rates, it could mean a surge in Bitcoin's price not unlike what we saw in 2020. I'm betting on this outcome, and so is Real Vision CEO Raoul Pal, who has also expressed similar views about the latest market pullback being a "macro spasm" that likely will not last more than a few weeks.

Well, the way I see things, the market conditions are shaping up to form the perfect storm for Bitcoin to rise. The probabilistic outcome is that this is just a nasty flush out, and when the Federal Reserve reacts, it will be the trigger to signal the rebound. I'm looking to add to my crypto investments over the next week or so, and personally, I feel this could be your last opportunity to get in or be fully positioned before the market takes off again.

The way I see it, the long-term rise of Bitcoin is intact, and the current market crash is just a small setback. Interest rates are going to be lower, with quantitative easing more and more in the cards, as central banks move to counteract each successive contraction. Thus, the case for Bitcoin will be reinforced. I have every confidence that Bitcoin will hold its value as a safe haven and a store of value for years into the future, and I'm not changing my strategy anytime soon.

Not financial advice, just my opinions and thoughts. Please do you own research before entering into any kind of investment.

Posted Using InLeo Alpha