The value of bitcoin dropped nearly 50% from its peak observed in April at $65,000. The onset of bearishness in the cryptocurrency market was triggered by an impending correction, followed by China’s move to crackdown on cryptocurrencies. As BTC price descended to $31,000 CNBC’s Jim Cramer who recently hopped on the Bitcoin train, was now off it.
According to the host of Mad Money, China’s tough treatment of crypto pushed him to sell all his Bitcoins. Cramer noted:
“I sold almost all of my bitcoin. Don’t need it.”
Meanwhile, Institutions like MicroStrategy reaffirmed their faith in the digital asset and announced an additional investment of ~$489 million. The CEO of MicroStrategy, Michael Saylor was among the Bitcoin enthusiasts who was ready to buy the dip. As the news of China caused the price to plunge, Saylor saw this as an opportunity to “buy the dip” and bought 13,005 BTC at an average price of ~$37,617 per Bitcoin.
This represented a major difference in the perception of Bitcoin in the crypto market. While Cramer referred to Bitcoin as an “alternative to cash positions where the holders make absolutely nothing,” Saylor mentioned:
“In the last twelve months, #Bitcoin has arrived on Wall Street. That is the news. The rest is noise..”
Interestingly, wild corrections in the market were not new to the cryptocurrency long-term holders. Therefore, the trust among the long-term holders has been strong. Short-term holders like Cramer himself were thrown off by the bearishness in the market and panic sold the digital asset.
While the skeptics believed that this was it for Bitcoin, analysts believed that the correction was a brief hiccup before the asset sets back on its bullish journey. Willy Woo pointed at the growing stablecoins on the sidelines and noted:
“We’re in this historic kind of ATHs of stable coins and that’s very positive for the longer term price. We’ve got a lot of upside and the downside is quite limited at this stage.”