Bitcoin and most cryptocurrencies are tanking today, possibly on news from China suggesting an even stricter crackdown on ALL centralized cryptocurrency trading, beyond the stances they've already taken against ICOs and exchanges. Furthermore, there are speculations over the Chinese New Year and typical January lulls contributing to the fall.
While I am skeptical over the idea that prices are seasonal, I do think this is a strong opportunity. For those of you who missed out on being able to buy Bitcoin back when it reached $10k back on December 22nd, this could be a good time to scale more cash into the market if you generally keep a cash position in your portfolio. Personally I won't be adding more as I already scaled my position comfortably back on December 22nd and don't plan on buying more Bitcoin til it goes to $10k or lower.
Generally speaking, I still prefer Bitcoin over altcoins. While it is unfortunate that it is currently looking like Bitcoin will retake its dominance on the downside rather than the upside, I still find it to be better exposure for the crypto market in either direction.
On the topic of whether or not the bubble is popping, I still suspect we have a while left and there are plenty of speculators (ahem, "investors") waiting on the sidelines for "cheap" Bitcoin. While I still think Bitcoin is a bubble, there is plenty of room for it to grow and both retail and institutional investors are waiting for better entry levels to ride the hype. Naturally it's always possible that the bubble is popping, but my thoughts (for now) are that we are still on board to see higher levels.
As such, if we see Bitcoin decline further from here, I will continue to shift more funds into it especially if we see it reach $8k (a level that many people are watching). In the event that this ends up being a more sustained downtrend, I would be ready to pick up more at lower price levels.
What are your thoughts on this current price movement? Do you think it will continue or it is shortlived? Thank you for watching as always.