Is Now a Good Time to Buy Crypto?

Because of the sharp increase in prices over the past few months, this may not be the best time to invest, particularly if you believe that bitcoin is in a bubble. However, you might be looking to buy tether, in which case even the discussion of bitcoin comes back to the fore…

Stabilization

Given the Bitcoin price has stabilized since its lowest point last year in June — and has actually increased as much as 20% over the past few weeks — it may be that the bottom is now behind cryptocurrency, creating a chance to invest for the next long-term cycle. When these kinds of big drops happen for cryptos across the board, a lot of investors and enthusiasts start pushing the old investing maxim that it is time to buy the dips – since a lot of people are hoping these lowers are indicative of temporary declines, not long-term bear markets.

Market-leading cryptocurrencies like bitcoin are down over 70% since their highs in November of last year. As has been the case for some time, the cryptocurrency markets took their cues from more established markets, but they fell even further, with Bitcoin falling over 9 per cent last Wednesday, then recovering somewhat by the end of the week. Bitcoin was once trading at nearly $69,000 apiece, but the start of the recent decline in Bitcoins fortunes was in May, when it fell below a psychological $12,000 level as the wider crypto market crashed.

Only one way to go after a collapse — up

The cryptocurrency market collapse is impacting all the major and minor crypto coins; Bitcoin, in particular, has taken a significant hit on its market value. Bitcoin has been recording significant declines over the last months that it has been operating, and that has caused investors eager for an exit, creating a tilt towards new, interested buyers of the cryptocurrency. Cryptocurrency is still a new, relatively untested market, making it a lot more risky than stocks. Certainly, the bitcoin bubble seems to have burst, with investors losing faith in the crypto sector.

We can speculate about the potential value that cryptocurrency could hold for investors over the coming months and years (and plenty of people will), or even speculate about what will ethereum be worth in 2030, but the reality is that it is still a new, speculative investment with little history on which to base predictions. As cryptocurrency prices become more predictable, there is the potential that cryptocurrency could become used as a medium for commerce, instead of simply as a store of value, ironically, potentially pushing its market value to levels not seen before. With the cryptocurrency prices at such a low point, this might appear as an ideal time for first-time buyers to get in on the action, following industry figures such as Microstrategy’s Michael Sailor and Tesla’s Elon Musk’s popularity of a “buy crypto when prices drop” trend this year.

Are you in or out?

The kings of the cryptocurrency world — bitcoin and Ethereum — guided the markets general trajectory, serving as two of the most popular digital assets for buying and trading. As a result, almost every other coin has mirrored the movements of its price, since the whales of crypto trading tend to invest across an array of different coins for the sake of diversification, with most of their funds being invested in Bitcoin and Ethereum.

So maybe it is indeed a good time to buy crypto…

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