Core Viewpoint - The current dip in Bitcoin's price presents an opportunity for long-term investors to focus on the asset's fundamentals rather than short-term fluctuations [1]. Group 1: Long-Term Investment Perspective - The long-term holding strategy is emphasized, with the understanding that price volatility is expected and should not deter investors [3]. - Historical performance shows that despite significant dips, Bitcoin has appreciated substantially over the years, with a 428% increase from its low in December 2022 [4]. Group 2: Supply Dynamics - A significant portion of Bitcoin is held by entities that are less likely to sell, including government entities, public companies, and asset managers, which stabilizes the market [7]. - The potential for central banks to accumulate Bitcoin as reserves could further reduce circulating supply and enhance its maturity as an asset [8]. Group 3: Macro Liquidity Factors - Bitcoin is viewed as a barometer for global liquidity, which is influenced by central bank policies and credit creation [9]. - An anticipated shift towards a more accommodative monetary policy in the U.S. could lead to increased liquidity, benefiting risk assets like Bitcoin [10]. - Historical trends suggest that purchases made during periods of low liquidity will yield favorable outcomes when liquidity expands again [11].
3 Reasons Why I'm Not Worried About Bitcoin Slipping Below $90,000
The Motley Fool·2025-12-20 22:27