MicroStrategy is buying the dip – Should you follow their lead?

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With smart money digging in, Bitcoin and Ethereum come across as worthy buys in the crypto dip.

Key points:

Smart money is buying crypto and could be a leading indicator that the market could rebound.

Following the lead of institutional money, Bitcoin and Ethereum could be worthy buys today.

MicroStrategy is buying the current Bitcoin drop, an indicator that they have positive expectations of the market long-term. This indicates that those with in-depth knowledge of crypto, and the financial markets in general, expect the cryptocurrency market to do well in the future. 

With this confidence boost, what are some of the best cryptocurrencies to buy the dip in anticipation of the next bull run?

Bitcoin (BTC)

In the financial markets, one of the best ways to make money is to follow the moves of the big money players. As such, now that companies that hold billions of dollars worth of BTC are buying, it makes sense to follow their moves. 

Bitcoin BTC/USD is currently trading at $19k, which means it is now 71% off its most recent all-time highs. If Bitcoin’s history is anything to go by, then the odds are that it could be close to the bottom. 

In essence, getting in now and holding long-term could be a high-reward play if Bitcoin retests its all-time highs. Most analysts speculate that Bitcoin could test $100k in the next bull run.

Over and above the speculation, there are concrete reasons to believe that Bitcoin could push through $100k. For instance, Bitcoin adoption as an investment and for payments is rising. 

On top of that, Bitcoin has a capped supply of only 21 million. A considerable amount of Bitcoins is already lost for good, and the Bitcoin halving has ensured that the number of coins entering circulation is slowed down over time.

This low supply and growing adoption make Bitcoin one of the best cryptocurrencies to buy in the dip and hold long-term. 

Ethereum (ETH)

Like Bitcoin, Ethereum ETH/USD is trading at record lows from its most recent highs. From highs of $4800 back in November 2021, Ethereum is barely holding above $1000. Despite this price drop, Ethereum fundamentals are getting better. For instance, Ethereum is currently in the process of a shift to Proof-of-Stake. This will allow most transactions to be completed on layer-2 networks and take the load off the main chain.

The impact will be lower gas fees, faster transaction speeds, and better adoption odds for Ethereum. On top of that, the Ethereum network is now deflationary and will have an accelerated token burn once it starts running as Ethereum 2.0. This will mean demand chasing a declining number of tokens over the years.

It is not hard to see why Ethereum has growth potential and is one of the best cryptocurrencies to buy in the current cryptocurrency dip.

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