This is why you should buy and HODL the Bitcoin dip right now

Although Bitcoin has recovered somewhat today, the price has had to give in considerably in recent weeks. Is the end near, or is this an opportunity to buy more? If it were up to Arthur Hayes, you would do the latter. Buy Bitcoin and HODL.

Banner Bitcoin 2 (telephone)

The week of blow after blow after blow

What a week it was last week! Two major events caused the market to drop significantly. First there was the Mt. Gox FUDwhich gave Bitcoin a big blow. Then came Germany and America who also contributed to the decline. Mt. Gox began refunding shortly thereafter. It is understandable that markets react negatively to this kind of news.

Arthur Hayes, CEO of crypto exchange BitMEX, says this is a natural phenomenon, however. Fear & Greed Index fell to levels not seen since January 2023. Investors, especially those playing with borrowed money, are feeling the heat.

Recent gains have evaporated, causing many to reexamine their investment strategies.

Buy the Bitcoin dip

Hayes observes that the market reaction is a mix of fear and opportunism. He points out that Bitcoin and the Nasdaq 100 moved together for a while, but recently the crypto market has been unable to keep up.

As the BRICS do everything they can to move us towards a multipolar global economy, Arthur believes the need for government financing through suppression and fiat money creation will continue. This, coupled with the global conflicts that are happening almost every month, will further fuel inflation.

And who benefits most from hyperinflation? Hayes says: “If you believe in the system but not its leaders, invest in stocks. If you believe in the system and its leaders, invest in government bonds. If you believe in neither, invest in gold or Bitcoin.”

He adds that stocks certainly need a strong state to maintain value. But Bitcoin is not dependent on a state.

What is HODL

So it’s clear that Hayes is a big advocate of holding onto Bitcoin, even in tough times. But what exactly does HODL mean?

HODL is a well-known term in the world of Bitcoin and cryptocurrencies. It derives from a misspelling in an online forum post from 2013, where “hold” was mistakenly typed as “hodl”. The term quickly came to mean “Hold On for Dear Life”.

In the context of Bitcoin, HODL refers to an investment strategy where one holds their Bitcoin and other cryptocurrencies for the long term, regardless of short-term fluctuations. HODLers believe that the Bitcoin price will rise in the long run, so they are willing to endure market volatility and wait for future profits.

Arthur Hayes continues to maintain that despite the bears dominating the market, this is the best opportunity to invest in Bitcoin and hold for the long term.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button