Hi I have been toying with the idea of investing in BTC but have waited due to some investors saying the price will drop to 12 - 16k again. do you think it could still drop to this or are we more likely to move on up to 40k?
thanks in advance.
At one point, bitcoin dropped to $16k, this happened last year, if you miss it, you won't have a chance to see $16k worth of bitcoins again. The market has been through the hardest period, and we are recovering, so a drop in bitcoin to $16k is unlikely. I advise you to buy bitcoin now, otherwise, you will continue to regret like the way you are waiting and miss the good price.
there is always the possibility that it will go down again, it can still happen, if you look at the crisis situation, it has not been fully controlled properly, there are still many countries that have to experience difficulties in repaying debts that must be rescheduled and other difficulties, so this indicator will also affect crypto is no exception when it comes to bitcoin prices.
but I agree with your opinion that to immediately buy bitcoin at this time, because bitcoin will always increase in time. it must be remembered that next year is when the halving will occur and usually prices start to improve until a year later. so there is no need to delay until it goes down again because whenever you buy at any price you will definitely get a profit if you want to hold it until the increase occurs.
It is true that bitcoin is still likely to drop below $20k or even lower, but the chances of that happening are slim. Regarding the world economic situation, we are still having a hard time, but the worst is over, I mean, this year is still better than last year, inflation has started to cool down, and we are also gradually adapting to the changes caused by war. Regarding the market, I don't think another crash like FTX will happen this year, and we are getting closer to halving. So the possibility of bitcoin plummeting is very low, instead, we are entering the recovery and accumulation phase, so waiting for the price to drop lower to buy will be a bad decision.
Why then do you say that it is likely for Bitcoin to drop below $20k when you also say that chances are slim? You mean it is unlikely but not impossible to drop below $20k.
When you say that the worst is over, as much as I would like that to be true, as much do I have to say that nobody really knows at this point in time. The Chinese could still escalate and that would not only result in a military war, but also in an unprecedented economic war. We already have an unprecedented global situation and that would make it even worse. Probably much worse.
But when it comes to investing in Bitcoin, waiting too long can be as harmful as going to fast. I think adding Bitcoin to your portfolio never is a wrong decision if you leave yourself some scope for action depending on how the world develops. I think it is difficult to tell how people would treat Bitcoin as an asset class when the world were to enter in an even worse situation. Is it an asset they use to escape from other systems, or is it the first they would liquidate in order to have cash to pay for all the necessary items and services?