Bitcoin has suffered a major crash, bringing its price down to lows not seen since last year’s crypto collapse. These low prices have crypto investors wondering whether right now is a rare opportunity to pick up some Bitcoin at discount.
Cryptocurrency is notorious for its volatility. Prices of digital assets swing more wildly than any other market, meaning that crypto investors with a high risk tolerance stand to make (or lose) serious amounts of money in the blink of an eye.
Staying true to its unpredictability, the world’s largest cryptocurrency, Bitcoin (BTC), has once again surprised investors with a significant crash. Crypto investors were given some false hope on Wednesday, after Bitcoin experienced a brief rally following an announcement from the Federal Reserve. Bitcoin rallied just enough to almost touch the $40,000 ($57,012 AUD) mark, spurring hopes of a recovery.
Those hopes were quickly shattered when Bitcoin’s price immediately plummeted roughly over 10% in the following hours. Bitcoin is currently trading for $34,124 ($48,637 AUD) at the time of writing. Bitcoin hasn’t traded around these prices since the darkest depths of last year’s July downturn, where it changed hands for $29,807 ($42,484 AUD) a piece.
Now, as Bitcoin’s (BTC) price continues to plummet, there’s a single burning question that everyone seems to be asking: “Is now the best time to stock up on some seriously cheap Bitcoin?”
To answer that question, we’ve scoured the internet for the best analysts and expert opinions on whether or not buying Bitcoin is a good idea right now.
Bitcoin Looks Decidedly Unappetizing
Unfortunately for any crypto investors out there shopping for a Bitcoin bargain, it might be worth waiting a little while longer, according to the experts from Cointelegraph Markets. Crypto market analyst William Suberg predicts that the price of Bitcoin will most likely continue to drop for a while to come.
He points out that Bitcoin is currently on a warpath to close in the red for 6 consecutive weeks, something which hasn’t happened since 2014.
Even when zooming out to look at a much broader time scale Suberg said that, “Bitcoin’s chart still looks decidedly unappetizing.”
Put quite simply, Suberg and the Cointelegraph Markets team don’t think that there are any obvious factors that would drive the price of Bitcoin up again in the short term.
Buying Bitcoin Not the Worst Idea
The analysts from The Motley Fool had other ideas however and said that buying some Bitcoin right now may not be the worst idea. They concluded that if you have some extra cash lying around – providing you’ve done your own research – right now might actually be a pretty good time to buy Bitcoin.
Offering a strategy focused on Dollar Cost Averaging, analysts at Motley Fool said that continually buying small amounts of Bitcoin (even as the price drops) is a good way to make sure that you don’t miss out on the current discount. The Fool’s finance editor, Emma Newbury did advise caution, saying:
“True, buying Bitcoin at $36,000 will seem like a bargain if it eventually goes to $100,000 or even $1 million as some analysts predict. But what if it sinks to $10,000 or less?”
As the Federal Reserve introduces more economic tightening measures and fears of a recession grow, it’s really important to remember that prices in stocks and crypto could continue to fall.
So, if you have a strategy that involves consistently buying some Bitcoin as the price drops, then now could be a really good time to pick up some relatively cheap BTC.
Otherwise, if you have a higher risk tolerance and you want to wait to buy Bitcoin at an even cheaper price, it might be worth holding on for at least a few more days.
DISCLAIMER: The information in this article is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs.