buy the dip

Veteran Investor Mark Mobius Expects Bitcoin to Fall Further — Cautions Crypto Traders Against Buying the Dip

14/05/2022 by Idelto Editor

Veteran investor Mark Mobius, the founder of Mobius Capital, has cautioned cryptocurrency traders against using the “buy the dip strategy.” He expects the price of bitcoin to plunge further with some temporary relief happening at $20K.

Mark Mobius’ Warning and His Bitcoin Price Prediction

The founder of Mobius Capital Partners, Mark Mobius, warned crypto traders about buying the dip in an interview with Financial News Friday. He also shared his price prediction and future outlook for bitcoin.

Prior to starting his own company, Mobius was executive chairman of Templeton Emerging Markets Group. He joined Templeton in 1987 where he managed more than $50 billion in emerging markets portfolios.

While acknowledging that some crypto traders have previously been successful using the “buy the dip strategy,” he stressed that it is not a strategy that would pay off while the market still has some way to fall. Commenting on buying the bitcoin dip specifically, the 85-year-old founder of Mobius Capital told the publication:

It will not work this time until bitcoin hits $20,000, from where there might be a bounce but then the next target will be $10,000.

Some people have expressed similar warnings on social media, especially after the collapse of terrausd (UST) and terra (LUNA). UST lost its peg against the U.S. dollar and is currently trading at $0.11 while LUNA is near worthless.

“Terra Luna provides a perfect example of why you shouldn’t always ‘buy the dip,’” Gold bug Peter Schiff tweeted Thursday. “Yesterday Luna was down 98%. If you bought that dip thinking the crash created a great buying opportunity you lost 99.3% today. This can happen to any crypto.”

However, many bitcoin investors are not buying the dip to time the market for a quick profit; they plan to hold their BTC long-term. Those who believe that the price of the cryptocurrency will reach $100,000 this year, for example, are happy to get in at any price below that target.

Mobius has long been a bitcoin skeptic. In October, he told the news outlet that cryptocurrency “could really blow up,” emphasizing that it was a risk that central banks “should be paying attention to.”

He advised people in November not to look at cryptocurrency as a means to invest. “It’s a means to speculate and have fun. But then you’ve got to go back to stocks at the end of the day,” he said.

What do you think about Mark Mobius’ warning? Let us know in the comments section below.

El Salvador Buys 500 Bitcoins Amid Crypto Bloodbath

10/05/2022 by Idelto Editor

El Salvador has bought the bitcoin dip. Amid a heavy crypto market sell-off, the Salvadoran president announced that his country has purchased 500 more bitcoins. Since El Salvador adopted the cryptocurrency as legal tender, the Salvadoran government has purchased 2,301 bitcoins altogether.

El Salvador Buys the Bitcoin Dip

Amid a crypto bloodbath, El Salvador has bought the dip. The Salvadoran president, Nayib Bukele, announced Monday on Twitter that his country has purchased 500 more bitcoins. “El Salvador just bought the dip! 500 coins at an average USD price of ~$30,744,” he wrote.

His tweet came as the crypto market lost billions, and the price of bitcoin fell more than 50% from its all-time high.

At the time of writing, BTC is trading at $31,607. It was down 8.5% in the last 24 hours, 18.1% in the past 7 days, and 25.4% in the last 30 days.

El Salvador became the first country to make bitcoin legal tender alongside the U.S. dollar in September last year.

Since then, the company has been purchasing bitcoin periodically. After an initial purchase of 700 bitcoins, the country bought 420 BTC in October, 100 BTC in November, 171 BTC in December, and 410 BTC in January. With Monday’s purchase, the total number of BTC purchased by El Salvador has grown to 2,301 bitcoins.

According to one estimate, El Salvador’s total bitcoin holdings have lost more than $30 million in value. Nonetheless, President Bukele is still bullish about bitcoin, expecting the price of BTC will reach $100K this year.

El Salvador also plans to issue bitcoin bonds but the launch date has not been set. Alejandro Zelaya, El Salvador’s treasury minister, explained that the market conditions and the Russia-Ukraine war have affected the bond issuance. “We are waiting for the right moment and the president says when … It depends on how the market is,” he noted.

What do you think about El Salvador buying 500 bitcoins after the price of the cryptocurrency plunged 50%? Let us know in the comments section below.

Microstrategy Buys 660 More Bitcoins —Total Holdings Rise to 125,051 BTC

01/02/2022 by Idelto Editor

Nasdaq-listed Microstrategy has bought 660 more bitcoins at an average price of $37,865 per coin, bringing the total crypto holdings of the company to 125,051 bitcoins. “Our strategy with bitcoin has been to buy and hold, so to the extent we have excess cash flows or we find other ways to raise money, we continue to put it into bitcoin.”

Microstrategy Adds 660 Bitcoins to Its Treasury

The Nasdaq-listed software company Microstrategy has bought the dip again. CEO Michael Saylor tweeted Tuesday:

Microstrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per bitcoin. As of 1/31/22 we hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin.

According to the company’s filing with the U.S. Securities and Exchange Commission (SEC), the purchase was made during the period between Dec. 30, 2021, and Jan. 31, 2022.

At the time of writing, the price of bitcoin is $39,121.89 based on data from Bitcoin.com Markets. It is up almost 2% within the past 24 hours, 6.4% in the last 7 days, but down 18% over the past 30 days.

Microstrategy’s chief financial officer, Phong Le, said last week:

Our strategy with bitcoin has been to buy and hold, so to the extent we have excess cash flows or we find other ways to raise money, we continue to put it into bitcoin.

Last week, the SEC made public its letters to Microstrategy about the company’s accounting of bitcoin. “We object to your adjustment for bitcoin impairment charges in your non-GAAP measures,” the securities regulator wrote in a Dec. 3 letter. The SEC then told Microstrategy to revise the way it discloses its bitcoin holdings in future filings.

What do you think about Microstrategy buying more bitcoins? Let us know in the comments section below.

Bitfarms Buys the Dip: 1,000 Bitcoin Added to Treasury as BTC Falls While Mining Hardware Prices Remain High

10/01/2022 by Idelto Editor

Global bitcoin mining company Bitfarms has bought the dip and added 1,000 bitcoins to its balance sheet while the prices of mining hardware remain high. The company’s corporate treasury now holds more than 4,300 bitcoins.

Mining Company Buys the Dip

Bitfarms Ltd. has taken advantage of the falling price of bitcoin. The publicly traded bitcoin mining company announced Monday that it has purchased 1,000 BTC for its treasury. The announcement details:

During the first week of January 2022, Bitfarms purchased 1,000 BTC for US$43.2 million. This increased the BTC holdings 30% to over 4,300 as of January 10, 2022.

Founded in 2017, Bitfarms is a publicly traded company in the U.S. and Canada. Its shares started trading on the TSX Venture Exchange (TSX-V) in July 2019 and on the Nasdaq Stock Market in June 2021. The company has five industrial-scale bitcoin mining facilities located in Québec and one in Washington state.

“Our guiding company strategy at Bitfarms is to accumulate the most bitcoin for the lowest cost and in the fastest amount of time for the benefit of our shareholders,” explained CEO Emiliano Grodzki. “To that end, we continually optimize our capital allocation.”

He elaborated:

With the dip in BTC while mining hardware prices remain high, we seized the opportunity to move cash into BTC.

Grodzki further said: “We continue to be committed to executing our operational growth strategy and delivering our goal of 8 exahash/second by the end of 2022.”

Bitfarms announced last week that it mined 3,452 bitcoins in 2021. The CEO noted at the time, “In 2021, we began to retain virtually all of our BTC production, which strengthened our balance sheet.”

What do you think about Bitfarms buying 1,000 bitcoins for its treasury amid high mining hardware prices? Let us know in the comments section below.

Veteran Trader Peter Brandt Shares ‘Sacred Trading Rule’ as Bitcoin Falls, Warns Against Buying the Dip

09/01/2022 by Idelto Editor

Veteran trader Peter Brandt has shared “a sacred trading rule” he uses in response to a comment about buying bitcoin as the price of the cryptocurrency continues to fall. “Never add to a losing trade,” he affirmed.

Peter Brandt Offers Trading Advice

Veteran trader Peter Brandt has a trading suggestion for anyone considering buying the dip. Brandt has been a futures and FX career trader since 1975. He is a chartist and the author of the Factor Report. He trades a variety of markets, including Dow futures, bonds, corn, crude oil, European wheat, Osaka Dow, U.S. dollar, and sugar.

Replying to a comment on Twitter stating that there may be additional opportunities for long-term hodlers to buy even cheaper bitcoin in the coming months, Brandt wrote:

A sacred trading rule I have used is never add to a losing trade.

He explained in a tweet that people were saying the same thing about silver futures in 1980 after it topped $50. “lt then sank to a low of $3.65 and did not start back up for 24 years,” he stressed. The trader clarified, however, that he is not predicting that bitcoin will follow the same path.

The price of bitcoin has fallen significantly this week, losing over 10% in the past seven days. At the time of writing, the price is $41,657.45 based on data from Bitcoin.com Markets.

Brandt commented on bitcoin’s violation of the parabolic advance on the Bitcoin Live discussion Thursday.

However, he tweeted Friday: “I saw the violation of the parabolic advance and commented on it in real time to members of Bitcoin Live in real time, but in hindsight, I might not have taken the event seriously enough. We’ll see.”

He followed up with another tweet. Noting that “Some view predictions as a ‘one-and-done’ event. I am [a] student of Bayesian probability. Predictions and analysis must always morph relative to the events of the time,” he concluded:

When circumstances change, predictions must change. The parabola might not be the driving force in BTC.

What do you think of Peter Brandt’s advice? Let us know in the comments section below.