After a promising start to the year, the crypto market is now in a deep funk. There’s no other way to describe its recent performance. Of the top 50 cryptocurrencies by market cap, only a handful are in the green over the past 30 days. Everywhere else, there is a sea of red.

But don’t despair. There’s one top cryptocurrency that’s still worth buying. In fact, it is likely to outperform the broader market over both the short term and the long term. Yes, I’m talking about Bitcoin (BTC 4.43%).

Bitcoin vs. altcoins

Let’s start by surveying the recent carnage in the crypto market. Over the past 30 days, Bitcoin is down nearly 10%, and some are now concerned that the world’s most popular cryptocurrency might dip below the $100,000 mark.

But if you zoom out, an entirely different picture emerges. Major altcoins are down anywhere from 15% to 30% across the board. Ethereum, for example, is down 15%. Solana is down 20%, XRP is down 25%, and Cardano is down 30%.

And don’t even think about investing in meme coins right now. Shiba Inu is down 25%, Dogecoin is down 30%, and Pepe is down 40%.

Against that backdrop, Bitcoin’s performance over the past 30 days becomes much less disappointing. It’s hard to call Bitcoin a “store of value” right now, given its recent decline. But it is definitely holding up better than other top cryptocurrencies. For the year, Bitcoin is still up nearly 15%.

The debasement trade

One reason why Bitcoin is holding up better than major altcoins is something called the “debasement trade.” This trade is currently the newest obsession on Wall Street: moving out of fiat currencies and into gold, precious metals, and yes, Bitcoin.

For the casual investor, Bitcoin wouldn’t even seem to belong in the same sentence as gold. But here’s the thing: Institutional investors and big hedge fund managers have latched onto the narrative of Bitcoin as “digital gold.”

Just like physical gold, Bitcoin possesses tremendous scarcity. Only 21 million coins can ever exist, and nearly 20 million are already in circulation. An algorithm carefully controls the rate of new Bitcoin creation, and this rate of new emission is actually getting slower and slower over time. This is the result of the Bitcoin halving that takes place every four years.

In short, there’s no way to create more Bitcoin than what is made possible via the algorithm. No central bank, sovereign authority, or Wall Street institution can create new Bitcoin out of thin air.

Contrast that to fiat currencies such as the U.S. dollar. For better or for worse, you can always print more money. And that creates the risk of debasing the currency even further.

That’s why the “debasement trade” works. The only way to pay down huge deficits is by printing more money. And that’s why investors are now choosing to ditch dollars for Bitcoin.

Buy the dip on Bitcoin

Admittedly, there have been some severe drawdowns in Bitcoin over the past decade. In 2022, for example, Bitcoin lost 64% of its value. In 2018, Bitcoin lost 74% of its value. And in 2014, Bitcoin lost 58% of its value. But each time, buying the dip on Bitcoin has been a smart move.

After all, here we are today, talking about $100,000 Bitcoin. Ever since Bitcoin crossed through the $1,000 mark in 2017, the overall trend has been a distinct upward trajectory. From the $1,000 price point, Bitcoin rallied to $10,000, and then to $100,000.

Investors who bought the dip each time have been richly rewarded. Some early Bitcoin investors have seen 100-fold and even 1,000-fold returns on their investment. Even recent Bitcoin investors who started accumulating during the crypto winter of 2022 have seen a more than sixfold return on investment.

So view the current pullback in Bitcoin as a buying opportunity. If history is any guide, buying Bitcoin now at a discounted price of $105,000 will pay off big later.

Dominic Basulto has positions in Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.

Shares of Carnival (CCL 1.90%), the world’s largest cruise line, were pulling back on Monday after a strong earnings report. Carnival delivered another quarter of record results during its third quarter, the seasonally strongest period of the year.

Revenue in the quarter rose 3.3% to $8.15 billion, which edged out estimates at $8.11 billion. Net yields, or prices, hit an all-time high over the last four quarters, which helped the company deliver strong margin expansion. Adjusted net income improved from $1.75 billion to $1.98 billion, or $1.43 per share, which was better than the consensus at $1.32.

Carnival also raised its guidance, reflecting improved net yields and effective cost management. It’s now calling for adjusted net income to rise 55% for the year to $2.95 billion, or $2.14 a share. Additionally, it sees net yields up 5.3%, compared to a 3.3% increase in adjusted costs, and it expects a 15% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $7.05 billion.

Despite the strong results, Carnival stock fell on the news. It closed Monday’s session down 4%, despite an initial spike on the news. The reason for the decline wasn’t clear. Investors might have expected better results, or they think enough optimism is baked into the stock, as shares were running higher before the report came out.

Carnival stock is now down 10.4% from its peak just a month ago, and the pullback sets up an attractive buy-the-dip opportunity. Here are three reasons why.

1. Booking trends remain strong

Despite concerns about an economic slowdown in the U.S., Carnival continues to see strong booking trends going forward, a sign that demand for its cruises continues to grow. It reported record customer deposits for the quarter at $7.1 billion, and management said that booking trends strengthened through the quarter and are higher than a year ago.

Nearly half of 2026 is booked at historical high prices for both the U.S. and Europe, and the company said it had record booking volumes for 2027.

Celebration Key, its new private island in the Caribbean, is off to a great start. Management said that the new island has received reviews, and returns on the investment are meeting expectations. Momentum for the business is clearly robust, and management expects Celebration Key to be a major demand driver.

2. Interest rates are coming down

Operationally, Carnival is doing phenomenally, but the stock is still weighed down by the massive debt load it took on to stay afloat during the pandemic shutdowns.

It continues to pay off that debt, and finished the fourth quarter with $26.5 billion, down more than $1 billion from the beginning of the fiscal year. It also refinanced $4.5 billion in debt during the quarter, helping to lower its interest expense, which fell from $431 million in the quarter a year ago to $317 million.

The Federal Reserve cut the benchmark Fed funds rate by 25 basis points earlier in September, and expects to make two more similar cuts over the rest of the year. That should allow Carnival more opportunities to lower its average interest rate, especially given the strength of the business. By cutting interest expense, it can grow net income even without an increase in operating profit.

3. The stock is still a good value

Carnival has been a winner since the pandemic, largely because of its execution and growth, but also because the stock offers a good value. Based on the adjusted earnings per share forecast of $2.17 for this year, it now trades at a forward price-to-earnings (P/E) of just 13.5.

Cruise stocks can be risky, due to their vulnerability to black swan events like the pandemic, or even economic downturns. But Carnival’s recent results give investors good reason to expect smooth sailing ahead. Demand trends look great. It’s steadily reducing its debt burden, and investments like Celebration Key should pay off over the long term.

The recent pullback looks like a great opportunity for Carnival stock.