Amid the continuing GameStop frenzy, crypto has also been hot… A lot of people are wondering if Bitcoin will crash again — and whether they should buy the dip.
Last week, Bitcoin hit a fresh record high on news that Tesla CEO Elon Musk bought $1.5 billion in Bitcoin (BTC). The company also said it will start accepting BTC as payment for its products.
Musk, who can move markets with a single tweet, also added #bitcoin to his Twitter bio, which quickly pushed the crypto up as much as 20%.
That pushed the price for a single “coin” to a record high of $57,790 before we saw Bitcoin crash again. As of this Friday afternoon, it was trading under $47,000.
In fact, while Musk may be partly responsible for Bitcoin’s latest record surge, he’s also likely partly responsible for the subsequent dip — all via Twitter. Last weekend, Musk tweeted, “BTC & ETH do seem high.” (ETH is Ethereum, another popular crypto).
As stock market expert Adam Sarhan will explain in the video below, we’ve had a huge move up since October, when Bitcoin was trading for just under $12,000. In a few months, we’ve gone from $12,000 to as high as $58,000.
Well, ladies and gentlemen, that’s not a normal move!
And after such a wild jump, it’s perfectly normal and healthy for Bitcoin to pull back, digest, pause and then build a new base before moving higher again. So if you’re asking will Bitcoin crash again…
Yes! Adam says there’s no doubt about it.
The big question everyone should be asking instead is whether you should buy this pullback. Check out Adam’s short video on why Bitcoin is crashing and let’s talk about whether you should buy this latest dip.
And as always, please like and subscribe to our YouTube channel. You can also follow Adam on Twitter, and read more of his thoughts on the market at WealthPress and on Forbes, where he’s also a contributor.