Is it a Good Idea to Buy Bitcoin When its Price Drops Today?

By Ruby Currency

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Is it a Good idea to Buy Bitcoin

Bitcoin is having a hard time because of the new ETFs, but this isn’t a new problem.

After a big beginning to the year where 11 new exchange-traded funds (ETFs) got approved, Bitcoin (BTC 1.48%) dropped by almost 19%. It’s still down by over 11% from its highest point today. This seems like a situation where people were excited before the news but sold after it happened. People who thought Bitcoin would only rise now that it’s on Wall Street might need to rethink their expectations.

Despite the recent decrease in value (which disappoints critics), Bitcoin is still in a good position as the possibility of a bull market approaches. If Bitcoin’s price drops further, it’s a chance to buy, and here’s why you should consider it an opportunity.

Is this a natural phenomenon?

Bitcoin often changes a lot in value. In its 15 years, it has dropped by over 50% about eight times and by over 70% three times. These drops usually mean a bear market is starting. But even when Bitcoin is doing well and prices are rising, it can still drop a lot.

Look at what happened with Bitcoin in 2021. As it went up to its highest price ever, it dropped by more than 19% about five times within a week or two each time. In 2021, it even fell by 50%, going from $58,840 in May to $29,700 by July. But surprisingly, it bounced back and doubled in value in just four months, reaching almost $69,010.

Bitcoin’s price often goes up and down a lot, which can worry investors. But there are good reasons why Bitcoin’s value changes so much. First, Bitcoin is traded all the time, every day, everywhere in the world. Unlike the stock market, it doesn’t have set hours. Also, a lot of trading involves borrowing money to buy Bitcoin, which makes the price swings even bigger and quicker when lots of people are interested in buying or selling it.

Fundamentals are still good

When Bitcoin prices drop, even when the market seems good for Bitcoin, it’s not unusual. Knowing this can make investors feel better. Considering how Bitcoin is growing in important ways, it should make investors more confident that these drops are just small problems along the way as Bitcoin’s value goes up.

Bitcoin is like a digital network where people can trade money without a middleman. Bitcoin needs to become more spread out, safe, and strong as time goes on. Luckily, it’s happening.

One important number for Bitcoin’s growth is called hash rate. It shows how powerful Bitcoin’s computers are. The hash rate helps investors see how strong and healthy the Bitcoin network is. Recently, Bitcoin’s hash rate almost reached its highest level ever.

This happened in early January 2024. More miners and nodes are now part of the network than ever before. Experts think the total power of the Bitcoin network’s computers is now 500 times stronger than the most powerful supercomputers in the world.

The network is getting stronger, and more people are using Bitcoin. Look at the number of digital wallets with Bitcoin in them. Right now, there are over 53 million wallets with Bitcoin. That’s 10 million more than last year and twice as many as five years ago.

Smooth and Stable

At first, Bitcoin’s ups and downs might seem worrying. But if we look at how often it corrects itself, even when prices are rising, the recent drop isn’t unusual.

One could argue that Bitcoin has never been in better shape. While its price bounces up and down, the network’s resilience and growth remain refreshing constants. Until any indicators hint at a lack of fundamental strength, consider this dip, and any future ones, as a reason to grab the world’s original cryptocurrency at a discount.

Disclaimer: The information on this website isn’t meant to be taken as advice for investing money. Investing involves uncertainty, and there’s a chance you could lose your money when you invest.

Ruby Currency

Discover the latest in cryptocurrency, blockchain, NFTs, and the Metaverse with our expert content writer. Decoding complex concepts and delivering insightful content, we guide you through the digital frontier.

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