Should you buy Bitcoin at the Current Market Price

Is it a smart idea to buy now when the crypto market is “on-sale”? Some financial professionals believe that the short-term dangers of investing in cryptocurrencies are worth the potential long-term returns. Before investing in bitcoin and other cryptocurrencies during the current slump, read this piece.

Read on; Bitcoin on the Rise After a Week to Forget

So far this year, both the cryptocurrency and stock markets have struggled. Along with the stock market, the values of bitcoin, Ethereum, and other cryptocurrencies have fallen. The latest crypto market fall happened after the Federal Reserve raised its benchmark interest rate and the May inflation report revealed that consumer prices were still quite high.

Ethereum and other cryptocurrencies’ prices are probably plummeting in tandem with bitcoin. Although it is still down over 70% from its all-time high of $69,000 in November 2021, Bitcoin managed to remain above $20,000 on Thursday. For the first time since January 2021, Ethereum fell below $1,000 over the weekend.

According to the chief executive of Binance, Bitcoin might continue to trade below its all-time high of $69,000 for the next two years. “I think with this price decline, from the all-time high of 68k to 20k currently, I think it will take a long to recover back,” said CEO Zhao. In a dramatic turn of events over the weekend, the cryptocurrency asset dropped below that level, wiping out gains for many long-term investors. 

According to experts, now can be a good moment to invest in cryptocurrencies when prices are low, but only after determining your risk tolerance and setting other financial priorities. These include setting aside money for unforeseen expenses, eliminating high-interest debt, and contributing to a typical retirement plan like a 401(k).

Cryptocurrency is very erratic and prone to volatility. Values change minute by minute due to rumors, hype, and prevailing economic conditions. You shouldn’t invest in cryptocurrency if you can’t handle sudden changes in the market. No more than 5% of your portfolio should be invested in the market, according to experts. Potential investors should realize that price swings are normal and should expect prices to decline further before purchasing while the market is weak.

The majority of wise investors are aware of bitcoin’s significance in a digital environment, according to a strategist at Bloomberg Intelligence. 1,000 individuals in the US, UK, Singapore, and Germany responded to a Paxos poll. A third of respondents think bitcoin is a good alternative to gold, while half of the gold purchasers questioned said they expect to buy more of the metal.

Currently, there are slightly under $1 trillion worth of cryptocurrencies in circulation, compared to almost $3 trillion in November 2017, when bitcoin reached an all-time high of around $69,000. Cryptocurrency is a decentralized “blockchain” that anybody can access and use to record ownership. The blockchain network uses nodes, which are devices, to validate transactions. 

According to Zhao, some projects could be in danger since they were developed close to the most recent market peak. He claims that “we’re still alright” due to the efforts that have reduced costs. As a result, when the temperature drops, it feels like winter.


Leave a Reply

Your email address will not be published.