According to one member of the community, the tactic is to increase purchases; it was not a “dip” but rather a “discount.”
Cryptocurrency community members discussed their approaches to navigating market downturns and volatility, including dollar-cost averaging (DCA) and increasing blockchain purchases.
Following Bitcoin’s ascent to a value exceeding $48,000 on January 11, the market descended to $38,000 on January 23, resulting in a 21% deficit for traders who invested at the apex in 2024.
In light of the market decline, communication was initiated with members of the cryptocurrency community on X (previously Twitter) to inquire about their strategies during this highly turbulent period.
Trader Moe Iman responded to the thread by mentioning dollar-cost averaging (DCA). This investment strategy mitigates the effects of volatility by allocating the entire investment amount across numerous acquisitions of an asset.
Additionally, Iman emphasized the significance of “taking profits at the peak” and avoiding attachment to holdings to liquidate and reenter at the appropriate times.
Conversely, crypto influencer Helin Ulker chooses a more straightforward approach: purchasing more during price declines and exercising patience. This was reinforced by a member of the community, who reaffirmed that increasing purchases is the method to follow. The X user stated that the crypto assets were discounted and not dipped.
An additional participant from the community advised reevaluating investment objectives and maintaining composure amidst market declines. The X user suggests that for optimal results, they should diversify their portfolio, remain updated on market trends, and establish stop-loss orders for their positions. “Varying conditions can be more effectively managed with patience and a long-term perspective.”
On the contrary, on-chain data indicates that Bitcoin whales have been purchasing the decline. According to information compiled by the intelligence firm Glassnode, the value of entities holding 1,000 BTC or more in assets increased by 3% when spot BTC ETFs began trading. The behavior suggests that whales might anticipate Bitcoin to surpass its all-time high from 2024.
CoinGecko, a tracker of coin prices, reports that at the moment of publication, the value of Bitcoin is just above $41,000, with a market capitalization of $1.68 trillion for all cryptocurrencies.
