DON’T CONFUSE OPINION AND FACT! Why you should not be concerned about the recent crypto dip as a Long Term investor?

The Bitcoin is currently trading at around US$35,000, which has dropped by almost 50% from its All-Time-High (ATH) of US$65,000 in mid April. As the price drops, media keeps flooding us with negative news and pessimistic predictions. Many “experts” are now predicting that the price adjustment will continue until $20,000 or even $10,000. A Netherlands government officer even publicly claims that a complete collapse of crypto market is inevitable in the near future.

Although the crypto economy and its decentralized ecosystem have been hugely successful in the past few years, many people are still firmly believe that the who crypto idea is simply a Ponzi scheme. As the crypto price drops, they all jump out to claim victory. However, don’t be confused between opinion and fact. While the media is making the worst possible prediction, it is important to remember that it is only (one of the many) opinion. Before you get panic, you should look at the facts.

The Facts happened in the last 7 days

• The latest May 2020 Consumer Price Index (CPI) for the United States has increased by more than 5% on a year-to-year basis, which is the highest growth since 12 years ago. Meanwhile, the yield on 10 years treasury bond has dropped to 1.46%, which is the lowest level in the past 3 months. By looking at these figures, you can tell how much liquidity are out there. There are more liquidity out there than you can imagine.
• El Salvador is now the first country on Earth that makes Bitcoin its legal currency, while a list of other smaller countries such as Penama, Uruguay and Tonga are proposing similar laws which would gives Bitcoin the status as legal currency. If El Salvador, as the first mover, successfully attract new investments as a result of its new crypto initiative, we will definitely see much more countries joining El Salvador. The adoption for crypto currency will become unstoppable.
• A report from Politico reveals that Tim Wu, a top technology and anti-trust adviser to the Biden administration, is holding millions of cryptocurrency (mainly bitcoin and FIL). When the White House insiders are holding personal investments in crypto, you can imagine the positive impacts it would have when it comes to policy making.
• State Street Bank and Standard Chartered (both top 100 banks in the world) have both announced that they are setting up crypto trading platforms for their clients. You can tell how strong the demands are for crypto assets.
• Coinbase has reached a deal with ForUsAll Inc (a 401(k) provider in the US) this week. For the first time, US workers can choose to invest up to 5% of their 401(k) retirement fund into crypto asset (I have to say that I envy those who work in the US who are given this choice, while the city I live is trying to make crypto investments exclusive for rich people)
• Yesterday, the state of Texas has announced that it is allowing state-chartered banks to provide custody services for crypto investors.
• Manhattan Solar Partners, LLC announced plan to Build the Largest Renewable Powered Cryptocurrency Mining Data Center in Texas. El Salvador has also announced plan to use volcanic geothermal energy for cryptocurrency mining. Crypto mining is now a force driving the development of clean energy!
• Victory Capital announced three days ago that they plan to enter the cryptocurrency market, and will launch a private fund for accredited investors that will track the Nasdaq Crypto Index (NCI).

All the points summarized above are FACTS from the last 7 days. While the media keeps feeding you with negative comments and pessimistic speculations, just remember that they are OPINIONS, not facts. As long as you stick with the facts, you can easily tell what is the trend is.