Why Bitcoin Traders Should 'Buy the Dip, in Stages'

Analyst Geoff Kendrick from Standard Chartered has proposed a three-stage strategy for Bitcoin traders looking to buy the dip as the cryptocurrency market reacts to a prolonged U.S. government shutdown. Kendrick recommends that traders should first buy 25% of their maximum investment limit now, as prices dip below $100,000. A second 25% should be invested if Bitcoin closes above $103,000 on the following Friday. Finally, the remaining 50% should be purchased once the Bitcoin-gold ratio exceeds 30. The ratio, which has recently fallen to 25, peaked in January at 38.6, reflecting a period of weak performance for Bitcoin compared to gold, which has surged by 66.5% this year. Analysts anticipate that once the government shutdown concludes, institutional liquidity will return, likely triggering a strong recovery in the markets, aligning with historical trends of Bitcoin's seasonal strength towards the year's end.

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