In an odd way, it’s actually a bit of a relief when I see the prices fall this much to learn that the reason behind it was something as irrelevant as it was in this case. Surely, when roughly $400bn of the crypto market cap seemingly evaporates in a few hours, something really bad must have happened? Right?
Well, appartently not.
Musk tweeting and Binance being investigated.
In case you’re living in a cave or is a part of the Hive community (usually as much of an isolated bubble), the price of Bitcoin fell soon after Musk tweeted that Tesla would stop accepting Bitcoin as payment for their vehicles.
Additionally, the price went down another $2,500 today after Bloomberg reported that Binance Faces Probe by U.S. Money-Laundering and Tax Sleuths.
Of course, neither of these events are big in the grand scheme of things. Crypto currencies still provide the same solutions to many of the bigger problems in the world, and are still seeing the same rates of development and use.
So if the conclusion is that the dip was caused by irrelevant news, then almost by definition it should be a decent opportunity to buy provided we believe that Bitcoin and crypto was otherwise heading in a positive direction.
Did you buy the dip today?
Update: Elon Musk has since added another tweet to provide some small clarifications while stating his bullish view on crypto. So let's see if it brings the bulls back in the game as well.