With Bitcoin In Free Fall, Bitcoin Bull Reveals His Strategy When The Price Of BTC Drops

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bitcoin under 30k

If you follow Bitcoin, you have probably heard of Anthony Pompliano. Known simply as “Pomp”, Pompliano has gained a cult following on Twitter (he has almost 1mil followers at time of publish) and is known as one of the biggest Bitcoin bulls there is. However, he is also acutely aware that BTC is A) volatile and B) not something that should be regarded as a short term hold. But even for the biggest bull, seeing Bitcoin under $30K has to make him rethink his investment strategy right?

Thirty Thousand dollars per Bitcoin is still over 100% higher than where is was in March 2020. However, that is $35,000 lower than the cryptocurrency’s 52 week high of $64,500. As you might imagine, people who bought at the top are likely feeling a lot of unrealized financial pain right now. Or, it could be realized pain if they decided to sell for a $30,000+ loss. Ouch.

A few moments ago, Pompliano took to Twitter to write a thread about his strategy during price drawbacks. If you are invested in BTC or looking to invest in BTC, his point of view is certainly worth a read.

Whether or not Bitcoin has any value is up for debate. But Pompliano makes a good point here.

Why do we invest in anything, Bitcoin or otherwise? Belief. Hopefully a strong belief that what you’re investing in has value and that value will be realized in the price of the asset. That is the main difference between investing and trading. Scalping small swings can make you some money in the short term, but it can also burn you pretty bad if you’re not prepared for the dip.

As with anything you might read on the Internet, Pompliano followed up with a 12/12 tweet reminding people that this is just his opinion and not investment advice.

On one hand, Pompliano might be right here. Bitcoin might be the most valuable asset of the future. On the other hand, if he is heavily invested in BTC, he might be scrambling to do anything he can as he watches his favorite asset get crushed.

What is most important to remember is Pompliano is correct about two things: First, you shouldn’t take this as investment advice for Bitcoin. And second, it is sound investment advice in terms of how to create a winning strategy. And this long term, dollar cost averaging strategy can be applied to literally every asset type there is. So if you’re trying to chase Bitcoin, or Tesla stock or you’re investing in real estate, having a long term outlook while also not throwing all your money in at the same time, is bound to take your portfolio to greater heights.

 

Author
C. James

C. James is the managing editor at Wealth Gang. He has a degree in finance and a passion for creating passive income streams and wealth management.

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