As of recently, the price correction in Bitcoin currency has generated investment opportunities for individuals new to the market. That is because the most valuable digital currency is expected to increase in price by the end of the year. Moving forward, the latest auction is expected to be launched in a few days. The auction is expected to help investors save up to $12,000. This is absurd because the digital currency hit the high price of $58,000 in the previous week. Hence, due to this dip, institutional investors are also taking advantage of the value drop.
However, an alternative perspective indicates that purchasing digital currency based on a price drop of 4 days cannot be regarded as an intelligent strategy. The Bitcoin fundamentals have been established through vigorous market planning, and are strong. Thus, the recent dip can be associated with the profit-making strategy of the retail workers.
Furthermore, the Bitcoin market is affiliated with companies like Tesla. Such companies have appointed adoption rate limits, which will prevent the value of Bitcoin from further declining. Companies like Tesla now accept Bitcoin as a payment, and the Bank of New York Mellon announced plans to engage in a similar strategy. As a result, critics like Morgan Chase have argued that digital currency should be added to the portfolio of companies. He stated that, with such a portfolio, investors will allot 1% to digital currency. In this manner, they can adjust the risks affiliated with the system.
The CEO of MicroStrategy, Micheal Saylor said that executives of corporations should introduce Bitcoin into their balance sheet system. His company, in fact, invested a total of $1.02 billion in digital currency, with the price of $52,665 per coin. Moreover, Square, known as the payment giant, also invested in $170 million worth of digital currency.
However, this step was taken when the value of Bitcoin was at the $51,236 level. Furthermore, his company in an earnings call argued that investments make up a huge part of Square’s affiliation with the Bitcoin currency. Moreover, he also stated that the company has plans to increase the investments as time goes on. Another important point to note is that, Coinbase experienced a 13,000 coin purchase, which implies its success in the coming year.