28/06/2022

As crypto prices crash again – should investors ‘buy the dip’? Fidelity CEO Abby Johnson thinks so

The cryptocurrency sector continues to see falling prices, with Bitcoin falling over 5% recently after plunging below $18,000. This is only months after reaching an all-time high of $68,000 in late 2021.

 

But rather than seeing this major dip as a cause for concern, some industry experts believe that now is the perfect time to invest. This includes Abby Johnson, the CEO of multinational financial services corporation Fidelity. Speaking to a packed audience at crypto festival Consensus 2022 in Austin, Texas this June, Johnson explained:

 

“I figure this is my third crypto winter. There’s been plenty of ups and downs but I see that as an opportunity. 

 

“I was raised to be a contrarian thinker, and so I have this knee-jerk reaction: If you believe that the fundamentals of a long-term case are really strong, when everybody else is dipping [out], that’s the time to double down and go extra hard into it.”

 

Speaking of the recent price drops, she also added:

 

“I feel awful about the value that is lost, but I also believe the industry in crypto has a lot more to come.”

 

A brief history of Bitcoin prices – and what could be next

 

The cryptocurrency market has proved to be extremely volatile over the last year or so, after experiencing dramatic price swings. Bitcoin in particular has had a rollercoaster of a year. It kicked off 2021 at around the $30,000 range, before rising to a record high of $68,000 by November. Since then, prices have plummeted. Here’s a quick look at recent prices, according to an analysis by Time:

 

 

This has the potential to make some investors nervous, especially individual investors concerned about the lack of history and trackable data for the sector.

 

But experts advise that anyone looking to ‘buy the dip’ and invest now be aware that fluctuations and volatility are all par for the course for crypto.

 

They advise keeping crypto investments to under 5% of the total portfolio, so that crypto volatility doesn’t cause major financial shocks or get in the way of other priorities such as paying off high-interest debt.

 

Speaking to Forbes, Coinrule co-founder Oleg Gilberstein advised investors to set an amount they’re comfortable investing in Bitcoin or Ethereum, then simply ride out price fluctuations over the next couple of years.

 

As for what’s next for crypto prices, the only solid prediction that anyone can make is that it will definitely include more volatility. Even though currencies like Bitcoin have dropped considerably since those heady record-breaking weeks in late 2021, some experts believe that it could yet hit $100,000 before 2022 is over.

 

Looking to take the next step in your crypto career? Whether you’re job hunting or hiring, M-Wek is perfectly placed to help. We’re fintech recruitment specialists, dedicated to matching talented professionals and innovative companies within crypto, fintech and technology. Get in touch to start your search. 

 

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