Should You Buy Bitcoin and Ethereum When Their Prices Drop?

Two experts and a large financial institution say that $20,000 is too low a price for bitcoin right now. JPMorgan Chase recently put the price of the coin at $38,000, which is about 90% more than what it is worth now.

So, what does this mean for people interested in cryptocurrencies, and who might want to invest in bitcoin? Is now a good time to invest in the “sale” on the cryptocurrency market?

Some financial experts say that the short-term risks of investing in crypto could be worth the potential long-term rewards, as long as it doesn’t keep you from meeting your other financial obligations and you know your long-term goals ahead of time.

Here’s what you need to know about bitcoin and other cryptocurrencies before investing in them during the downturn:

What’s Happening With Crypto Prices? 

In the past few months, the prices of Bitcoin, Ethereum, and other cryptocurrencies have fallen along with the stock market. Investors are worried about rising inflation, Russia’s war in Ukraine, rising interest rates, and a possible recession.

Bitcoin fell below $19,000 on Thursday, aboh2ut a 70% drop from its all-time high of $69,000 in November 2021. Ethereum, on the other hand, dropped to almost $1,000 for the second time in June on Thursday as the network prepares for a huge and long-planned upgrade.

In June, the crypto market crashed after the latest inflation report showed that consumer prices were still high, and the Federal Reserve raised its benchmark interest rate by 75 basis points, the biggest increase in nearly 30 years. The crypto market lost about $2 trillion, and the S&P fell into a bear market.

In June, the price of Bitcoin fell by almost 40%, and it hit a low point below $18,000. In June, the price of Ethereum fell by almost half, going as low as $900 at one point.

Still, some experts think that bitcoin and Ethereum prices could go down even more. Kavita Gupta says it could be the start of a “crypto winter,” a long time when prices drop and stay low as they did from the beginning of 2018 to the middle of 2020. Gupta says that based on her technical analysis of the market, bitcoin could drop to $14,000, and Ethereum could drop to $500 in the next few weeks or months.

Should You Buy the Dip? How to Make Smart Cryptocurrency Investments

Should You Buy the DipAfter determining your level of comfort with financial risk and prioritizing other aspects of your finances, such as putting money aside for a contingency fund, paying off high-interest debt, and investing in a traditional retirement account like a 401(k), it may be a good time to invest in cryptocurrencies like bitcoin and Ethereum. At the same time, their prices are still low, according to financial experts. However, this should only be done after you have evaluated your risk tolerance (k).

If there’s one thing you should know about investing in cryptocurrency, it’s very volatile and hard to predict. Prices change every minute because of speculation, hype, and the economy’s whims. If you want to invest now while the market is down, you should know that price changes are normal, and you should be ready for prices to drop even more. If you can’t handle big changes in the market, you shouldn’t invest in cryptocurrency.

Regarding your overall crypto investment strategy, you should only put in what you’re willing to lose. Most experts say you shouldn’t put more than 5% of your portfolio into cryptocurrency. Experts say that Bitcoin and Ethereum are the two cryptocurrencies that are the best place for new investors to start.

Bitcoin has the best score of all the cryptocurrencies, and Ethereum is right behind it. Here’s how bitcoin and Ethereum compare to the other cryptocurrencies that are always in the top 10:

  • Bitcoin (BTC) – 80/100
  • Ethereum (ETH) – 68/100
  • Solana (SOL) – 55/100
  • Cardano (ADA) – 54/100
  • Polkadot (DOT) – 54/100
  • Avalanche (AVAX) – 52/100
  • XRP (XRP) – 51/100
  • Binance Coin (BNB) – 49/100
  • TRON (TRX) – 48/100
  • Dogecoin (DOGE) – 39/100

Investing in cryptocurrencies can be intimidating, especially when prices change rapidly. Learn about safer options for investing in cryptocurrencies. Contact us now at 855-642-8800.

Get started in just 5 minutes

It’s as easy as…

Open an account

Opening an account with our custody partner is fast and easy. Complete the process in as little as 5 minutes.

Transfer funds

It’s simple to transfer funds from an existing IRA or 401(k) to your new Equity Trust Digital Asset IRA.

Start trading 24/7

Our online trading platform lets you trade wherever, whenever, 24/7.

We believe in being better

Maybe that’s why people like us so much.

Why settle for less?
You deserve better

Have questions?

Let’s talk.