Time to buy the dip
Bitcoin continues with the correction… or is it actually a start of the bear market? Since fundamentals remain as strong as ever, we believe that this is just a correction and an excellent opportunity to invest additional capital. We sent a short memo to our investors this Monday at 6am UTC. Here is an excerpt:
The market is in a correction mode, especially BTC (which we don’t hold for quite some time now). Many people expect BTC to go down to $40k or even $38k, and it is a likely scenario. However, when everyone expects something to happen, it rarely does. We expect very strong buying pressure at some point, and it will be a good time to add more capital. We have additional capital from our treasury ready to deploy if BTC goes to or below $40k. Should this actually happen, it will be a fantastic buying opportunity.
As Bitcoin dropped to $38k today, we invested additional capital from our treasury (and notified our investors before the execution). Was this the actual bottom? Nobody knows, but we believe we are very near to it.
The market could go down several percentage points, but it is almost impossible to catch the exact bottom. Altcoins continue to outperform Bitcoin, and some of them are actually at or near their all-time high values.
Most important, while BTC is down 25% in May, our flagship Solidum Crypto Quant Strategy is up 11%. In line with our mission, we continue to protect our clients’ (and our) capital from large drawdowns.