Bitcoin enters another correction, investors keep buying the dip

Last week, Tesla CEO Elon Musk said Bitcoin was bad for the environment, and suspended the Bitcoin’s purchase option. As of press time, Bitcoin slips below US$44,000, while the fear and greed index has been under 30 for 5 days, according to Alternative.me. While there is a large sell-off by the retail investors, institutions keep buying the dip.

Bitcoin Magazine tweeted on Saturday that institutions have accumulated 215,000 bitcoin in the past 30 days, costing a roughly US$10 billion. In addition, Michael Saylor stated that the company acquired another 271 BTC in $15 million. The company has accumulated 91850 BTC now. Microstrategy never stops buying the dip when Bitcoin is under correction.

“Bitcoin is an interesting asset. It is one that has not reached maturity yet.” said Rick Rieder, CIO of the largest asset management firm BlackRock, in an interview with CNBC on Thursday. “I think it’s durable. I think it will be part of the investment arena for years to come, but some of these challenges and the volatility around it, regulatory dynamics, etcetera, fiat currency concerns… These challenges are real, and they will be overcome over time,”

Not only Rick Rieder, Square CEO Jack Dorsey emphasized the company would not change their Bitcoin investment strategy, and promised the company would “forever work to make bitcoin better”, including working through their Bitcoin Clean Energy Initiative.

Bitcoin is described as an alternative of gold, and a hedge against fiat debasement. Opening up crypto payment is a strategy to bring Bitcoin to the mainstream faster, as well as promoting blockchain technology, for example, JP Morgan and DBS bank launched a new company to help banks to settle global transactions through blockchain technology. Therefore, Tesla’s suspension of Bitcoin payment indeed does not affect the position of Bitcoin as a “store of value”.

TideBit is a leading crypto asset exchange supporting fiat currency.