Why Buy Crypto When Prices Are Dropping?

The effects of inflation are being hit with prolonged international unrest, and the economic repercussions caused in the aftermath of the pandemic.

Bitcoin, which hit a high of $68,000 per coin in November last year, has had a significant drop in its price by 70% and is currently sitting around the $21,000 mark. Ether, the second largest cryptocurrency, hit a high near $4,800 before plummeting to around $1,700 now. Across the board, cryptocurrencies and tokens have taken a hit.

As many would call it, its the start of “crypto winter” – an extended period when prices fall and remain low, as they did between late 2017 and mid-2020.

‍However, if you didn’t already know, bitcoin is on discount right now!

Experts say, that bitcoin is currently undervalued at $20,000. JPMorgan Chase recently valued the coin at $38,000 which is roughly, 90% more than its current price. According to Jurrien Timmer, director of global macro at Fidelity Investments, Bitcoin could be worth up to $100,000 in two years time, and its fair market value is currently between $40,000 and $50,000.

Cryptocurrency is not like a typical stock. Investing in cryptocurrency means that you are fastening your seatbelt in a rollercoaster. Due to its volatility and highly unpredictable prices, the values fluctuate by the minute! People have become millionaires overnight depending on how much they invested in their portfolio. For young individuals with the longest planning horizons for retirement, the current market dip could present an opportunity. However, sharp market swings should be expected. As much as we would all love for the prices to go up really fast they can drop down really quickly too.

Since we are not financial advisors, we cannot tell you what you should and shouldn’t consider. But what we can tell you is that, in recent years, we've seen an increase in institutional interest in crypto assets, which tells us that this space is growing and maturing. When companies across the globe are opening crypto departments, we have strong faith that crypto is here to stay.

If patterns and the trends of the past are repetitive, the present dip might recover as it did in 2020, when prices dropped before rebounding to pre-dip levels, as investors wanted their slice of the cake. During a “crypto winter” like the one we are experiencing, many believe that tokens with solid fundamentals have the greatest chance of surviving so make sure to do your research.

For interested investors looking to invest in cryptocurrencies, Black Swan Bitcoin is one of the easiest and fastest platforms to purchase Bitcoin and other crypto with 24+ BTM locations across the Bay Area. These locations were chosen specifically due to their open hours, convenient parking, and safe environmental settings. For those looking to find a “Bitcoin ATM near me”, you can visit our list of ATMS online! But hold on there’s more. If you are not located in the Bay Area but still want to purchase crypto, Black Swan Bitcoin recently launched an online crypto exchange. This service allows everyone around the world to buy bitcoin and other cryptocurrencies in their own fiat (money that is issued and backed by a government) currency.