Yes, the current pull back is scary, but it may not be anything out of the ordinary

The reason behind the current dip in bitcoin prices is rather scary, I mean the government forcing all self hosted wallets to KYC?

If that gets adopted and implemented I think it will greatly hamper crypto in the United States, both in terms of development as well as investing.

While their concerns might be somewhat valid, who wants to use something that the government can surveil any time they wish?

From that standpoint, using cash offers tremendously more privacy than bitcoin and crypto, in fact cash already does in most instances but this rule change would swing the pendulum even further.

So much so that it may cause a significant amount of money to move to truly private coins, which would probably cause an even bigger mess for US Regulators.

That being said, irregardless of the reason, 30% corrections are quite common during bull markets.

Check this out:

(Source: https://twitter.com/BobLoukas/status/1331944207892819970/photo/1)

History says Buy the Dips

Do you remember the famed bull market of 2016-2017? Or course you do, I mean it was the stuff of legends and made some people a lot of money.

However, what most people don't talk about much is exactly what is shown in that picture above.

Depending on where you draw your prices from, there were a number of dips in the 30% range from 2016 through all of 2017.

In 2017 alone, which was when bitcoin broke above $1k and held it for the first time ever, there were 3-4 of these rather large dips.

Each time people called for the end of the bull market and to sell bitcoin, and each time they were wrong, well except for December of 2017 but a broken clock and all that...

The important thing is that bitcoin can easily have corrections in the 20-30% range and continue to eventually power on to new highs.

The reason for the correction is often different each time, but the end result has most often been the same...

Higher bitcoin prices.

So, while it may seem very scary right now, and perhaps we are at the bottom of the current draw down just yet, history says the best play will be to buy this dip.

Will this time be the same? Only time will tell...

Stay informed my friends.

-Doc