This year cryptocurrencies have been dominating the headlines. From epic bull runs to unlikely celebrity influencers to market crashes, for the first time in history cryptocurrencies have been the main talking point of all mainstream publications.
While the crypto markets appear to have entered a bear run, we’re here to assure you that your crypto investment was one worth making, and to feed you some good news for a change (from the rest of the crypto related content out there). Consider buying the dip as we explore why now is a great time to buy Bitcoin.
How Did The Bitcoin Bull Run Reach Such Great Heights?
Before we dissect the reasoning behind the down trend, let’s first explore how it came to such great heights. Before this bull run the previous all time high was $19,783 achieved on 17 December 2017, a far cry from the current all time high of $64,863.10 (14 April 2021).
Last year witnessed the crypto market crash, along with most markets around the world as a result of the Covid-19 pandemic. Shortly after this the third Bitcoin halving took place (notorious for instigating a bull run several months later) which was followed by an unprecedented wave of institutional investment. Software company Microstrategy was the pioneer of this movement, with several investments leading to a current portfolio of 91,326 BTC (roughly $5 billion). PayPal also announced their support of cryptocurrencies, adding four digital currencies to their platform and later allowing users to make payments with them.
It wasn’t long before Tesla and its CEO Elon Musk got involved. The company made a sizable investment of $1.5 billion in the leading cryptocurrency. This led to a then all time high, only to drag the market through turbulent waves as it made various announcements. Through Twitter, Elon Musk has made several claims regarding Bitcoin sending the markets rocking, leading many in the crypto community to wish him gone. Peter McCormack, the host of the What Bitcoin Did podcast frankly stated “I hope he sells his Bitcoin and goes away.”
Why Is The Bitcoin Market Crashing?
There’s no denying that the Bitcoin market has entered a bear market, losing over 30% of its value in just 3 weeks. The initial crash was as a result of Elon Musk tweeting that Tesla would no longer accept Bitcoin as a payment option due to the high level of fossil-fuel powered electricity it takes to mine the cryptocurrency. Shortly after this China announced an internal ban on all services related to cryptocurrency transactions.
While banks and payment firms have been banned from facilitating any trade of cryptocurrencies, the country is still responsible for 75% of all Bitcoin mining. This is not the first time that China has banned the use of Bitcoin, with the last time taking place in 2013. Alongside the trading ban, the Chinese governmental body also released a statement indicating that there would be a “crackdown on cryptocurrency mining”.
Why Now Is A Great Time To Buy Bitcoin
With the markets down, many investors are jumping on the bandwagon and buying the first and most successful cryptocurrency. Observing the charts, JC O’Hara, chief market technician at MKM Partners, said “I think right now would be a great time [to buy]. If you were buying at the higher levels, you should be buying now.” He also added that the Ethereum trading chart is indicating a cup and handle pattern, which often indicates an upward trend ahead.
If you’re looking to get into either of these markets and buy the dip, you can do so right now with Oobit’s convenient and simple solution. Through a number of convenient payment options users can buy a wide range of cryptocurrencies instantly, with several crypto wallets automatically created for you. Buy, sell, and store your cryptocurrencies in a secure location through the Oobit platform.