Here’s why you’ll regret not buying more of this top crypto on the dip

The Federal Reserve continues to raise interest rates with the clear goal of trying to curb rising prices throughout the economy, and this has hit risky assets. Bitcoin (BTC 3.69%)in particular, is down 59% in 2022 (as of this writing), leading many investors to question its merits as a proper hedge against the skyrocketing inflation we’ve seen in the US in recent months.

But I think now might be one of the best times for investors to get aggressive. Let’s take a closer look at why you will definitely regret not buying the world’s most valuable cryptocurrency on the dip.

Bitcoin has always bounced back

Since May 2013 (the earliest data available on coinmarketcap.com), Bitcoin has generated a return of more than 13,500%. This amazing performance absolutely crushes it S&P 500, whose total return at the same time was a paltry 175%. To be fair, Bitcoin’s march higher has undoubtedly been fraught with extreme volatility. The top crypto has fallen more than 50% several times in its history. Movements like this simply do not happen in the stock markets.

However, Bitcoin has always bounced back from its lowest levels to eventually reach new highs. For example, Bitcoin fell 83% from its peak (at the time) in December 2017 to its bottom in December 2018, only to come roaring back over the next six months. And more recently, Bitcoin fell precipitously between April and July 2021 just before skyrocketing to an all-time high of nearly $69,000 in November.

Despite what happens in a single month, quarter or year, Bitcoin’s history is full of cycles of reaching higher highs and lower lows with crashes and rallies. As a result, investors would be wise to take advantage of the crypto winter we’ve been experiencing and put some money into Bitcoin at these prices.

Upcoming halving event

Bitcoin’s network operates what is called a proof of work consensus mechanism. This system of validating transactions requires so-called miners to use enormous amounts of electricity and computational power to add new blocks to the blockchain. For doing this work, miners receive rewards in the form of new Bitcoin.

About every four years, the mining reward amount is halved, which slows down the growth in the supply of Bitcoin. Typically, in the 12 to 18 months leading up to a halving event, the price of Bitcoin begins to trend higher. With the next halving projected to happen sometime in the spring of 2024, roughly 18 months from now, Bitcoin’s price may begin to rise. And this means buying now can be a lucrative decision.

Open the floodgates

Besides a history of prices bouncing back to reach new highs, as well as a halving on the horizon in 2024, another argument for why it’s a good time to buy is the growing ecosystem around Bitcoin. Fintech companies as Block, PayPaland Robinhood Markets makes buying Bitcoin easy. And the hope is that these businesses will attract even more interest from private investors.

In addition, have recent partnership that the giant asset manager Black stone entered into with crypto brokerage and exchange operator Coin base could raise more capital from large institutional investors as they begin to view Bitcoin as a legitimate store of value. In the meantime, it’s all about providing the necessary tools to buy Bitcoin, of which there is a growing list.

I think this is an easy decision. Throughout history, Bitcoin has always rewarded patient investors who can look out for at least five years. There is absolutely no doubt that the trajectory will be fraught with volatility and uncertainty, especially as this resource is still extremely early in its global adoption. But with the deep drop in price this year, now is an opportune time to buy Bitcoin on the dip.