free webpage hit counter

Do you have to buy a crypto dip when Bitcoin and Ethereum prices are low?

We want to help you make more informed decisions. Some of the links on this page – clearly marked – will take you to the partner website and may result in us earning a referral commission. For more information, see How we make money.

If you didn’t know, Bitcoin is now discounted.

According to two experts and a leading financial institution, Bitcoin is currently worth less than $ 20,000. JPMorgan Chase recently acquired the value of the coin at $ 38,000 – roughly 90% more than its current price.

Bitcoin can be worth up to $ 100,000 in two years, and its fair market value is currently between $ 40,000 and $ 50,000, said Jurian Timmer, global macro director at Fidelity Investments. Chris Brendler, managing director and senior market analyst at DA Davidson, expects Bitcoin to return to about $ 38,000 by the end of this year and $ 50,000 by the end of 2023.

“Bitcoin is a unique animal because its value is difficult to pinpoint,” says Brendler. “These exaggerated moves tend to turn upside down when people are only buying because they want it to go in value. When it starts to go down, those people depart. But in the coming years, the price of bitcoin will be higher than it is today.

So, what does this mean for a crypto-curious who sees Bitcoin as an investment? Is now a good time to take advantage of the “sale” of the crypto market and invest?

The short-term risks of investing in a crypto may well be worth its long-term potential benefits, according to some financial experts – as long as it does not stop you from fulfilling your other financial obligations and you can make your long-term goals clear. Beforehand.

Before investing in bitcoin and other cryptocurrencies in the midst of a downturn, here’s what you need to know:

What’s happening in crypto prices?

Crypto and stock markets have had a rocky year so far. Bitcoin, Ethereum and crypto prices have plummeted along with the stock market in recent months, and investors have been gripped by rising inflation, the Russian war on Ukraine, rising interest rates and fears of recession.

The latest crypto market crash came after the May inflation report showed consumers higher prices, and the Federal Reserve raised its benchmark interest rate by 75 basis points – the largest increase in nearly three decades. Approximately $ 2 trillion was lost from the crypto market and the S&P bear market fell.

On Saturday, Bitcoin fell below $ 18,000 – the new low since December 2020 – but by Monday it had struggled to more than $ 20,000. Bitcoin continued to hold more than $ 20,000 on Thursday, but fell nearly 70% from its all-time high of $ 69,000 in November 2021.

Ethereum, meanwhile, has dropped $ 1,000 over the weekend for the first time since January 2021 because it is a network brace for a massive and long-planned upgrade. Most cryptocurrencies follow Bitcoin’s lead. This means that if Bitcoin prices fall, Ethereum and other cryptocurrencies are likely to fall.

Still, some experts believe that the prices of Bitcoin and Ethereum may fall even further. According to Kavita Gupta, a venture capitalist and founder of the Delta Blockchain Fund, this could be the beginning of “crypto winter”, an extended period in which prices will fall and fall as early as mid-2018 and mid-2020. Gupta says Bitcoin could drop to $ 14,000 based on market analysis and Ethereum could drop to $ 500 in the next few weeks or months.

Do you need to buy a dip? How to be smart when investing in crypto

Experts say this is a good time to get into the crypto market when prices are low, but only after you’ve assessed your risk tolerance and prioritized other aspects of your finances, such as saving for an emergency, paying off a high-interest loan. And investing in a traditional retirement account, such as a 401 (k).

If there is one thing you need to know about investing in cryptocurrency, it is that it is volatile and highly unpredictable. Values ​​fluctuate minutely by speculation, hype and the prospect of broader economic conditions. Potential investors looking to buy now should understand that price fluctuations are par for the course when the market is down, and be prepared to drop prices even further. If you can’t stomach the sharp market fluctuations, you shouldn’t invest in crypto.

When it comes to your overall crypto investment strategy, keep only what you are OK with losing. Experts generally recommend not investing more than 5% of your portfolio in crypto. According to Experts and Next Advisors Investability Score, Bitcoin and Ethereum are two cryptocurrencies that represent a good starting point for new investors.

Bitcoin has the highest score on all cryptocurrencies, behind Ethereum. Here’s how Bitcoin and Ethereum compare to the rest of the cryptocurrencies that remain stable in the Top 10, apart from the market cap:

Updated June 23, 2022

Leave a Reply

Your email address will not be published.

Previous post For black artists, the motivating power of melancholy
Next post How To Buy Airbnb (ABNB) Stock – Forbes Advisor Canada