Saturday, September 18, 2021
Bitcoin Bitcoin ($BTC) Price Drop Is a Moment for Some Investors to Buy...

Bitcoin ($BTC) Price Drop Is a Moment for Some Investors to Buy the Dip

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For some, it looked like the beginning of the end. For others, it was a great opportunity.

Bitcoin’s value took a deep dip over the weekend, falling by as much as 15% Sunday on a cocktail of regulatory concerns, power outages in China that limited mining and accusations of overexcitement.

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But Bitcoin bulls big and small saw the weekend drop as an opportunity in the shorter term.

Oluwafisayo Williams, a 32-year-old doctor from Sheffield, UK, viewed the drop as a discount. He started investing in cryptocurrencies earlier this year and now says 100% of his investments are in digital currencies. On Sunday, he said he bought 4,800 pounds ($6,710) of Bitcoin and now holds around 27,000 pounds worth.

“It’s just a matter of conviction,” Williams said. “If you’re not convinced about Bitcoin, you might make the wrong decisions. If I weren’t convinced about Bitcoin, I might have sold it all.”

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On Monday, Bitcoin pared some losses and was trading at around $55,000 as of noon in New York after hitting a high of $64,617 on Wednesday.

After a period of relative stagnation, Bitcoin’s value took off in October as mainstream financial companies embraced crypto. Financial advisers started to feel more comfortable with their clients holding some crypto investments, and wealthy investors and family offices also piled in. On Monday, some money managers for the ultra rich were looking at the upside of a price drop.

Christian Armbruester, founder of the Blu Family Office, bought cryptos on the back of the recent slump for his personal account and also advised the same action for clients of his London-based investment firm, which oversees about $700 million for himself, his family and other wealthy investors.

“I bought a bit,” said Armbruester, who is planning to set up a dedicated crypto fund for Blu to trade the assets. “If you invest in crypto, you have to take the volatility.”

Some people, including CNBC’s Jim Cramer, have decided it’s time to cash in. The TV personality revealed last week that he sold some of his Bitcoin holdings — although he didn’t specify how much, or at what price — and paid off a mortgage.

“I decided to become an apostate,” he said. “I know people are going to be angry with me.”

There were other signals that other prominent investors thought the coin had gotten overheated during the hype around the public-market debut of crypto exchange Coinbase.

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