Should I Buy Crypto now?

Now, just In case you aren’t aware, bitcoin is on discount right now.

We’ll use Bitcoin & Ethereum as a case study or an example in this article, because as much as I know, they represent the crypto market the most.

This analysis is according to two experts and a major financial institution who say bitcoin is currently undervalued at $20,000. JPMorgan Chase recently valued the coin at $38,000 which will be roughly 90% more than its current price.

Now, Bitcoin could be worth more than $100,000 in two years’ time (we’ve seen how literally bullish the crypto space can get), and its fair market value is currently between $40,000 and $50,000, according to Jurrien Timmer, the director of global macro at Fidelity Investments. Chris Brendler, managing director and senior Marketplace analyst at D.A. Davidson, expects bitcoin to go back up to nearly $38,000 by the end of this year and $50,000 by the end of 2023.

So, what does this mean for those who are eyeing bitcoin as an investment? Is it a good time to take advantage of the crypto market’s “sale” and invest?

The Short-time period dangers of making an investment in crypto might be worth its Lengthy-term potential rewards. According to some financial experts, as long as it’s not holding you back from meeting your other monetary obligations and you can clarify your long-term goals beforehand.

You should know these before investing in bitcoin and other cryptocurrencies In the midst the downturn:

What’s happening with Crypto Prices?

Actually, it’s interesting to know that Bitcoin, ethereum, and crypto prices generally have crashed along with the stock market in recent months and investors keep grappling with continued surging inflation, Russia’s war on Ukraine, rising interest rates, and recession fears.

Bitcoin on few days ago plunged below $19,000, down nearly 70% from its all-time high of $69,000 in November 2021. Ethereum meanwhile fell to nearly $1,000 few days ago for the second time as the network braces for a big and long-planned upgrade.

One of the major crypto market crash happened after the latest inflation report showed continued high prices for consumers and the Federal Reserve hiked its benchmark interest rate by 75 basis points; the largest increase in about nearly three decades. Roughly $2 trillion was swept clean from the crypto market, also, the S&P fell into a bear market.

In June 2022, Bitcoin saw a nearly 40% drop, making it hit a low point below $18,000. Ethereum’s price also dropped by nearly 50% in June, going as low as about $900 at one time.

Yet, some experts believes the prices of bitcoin and ethereum could drop even lower. A venture capitalist said “it could be the beginning of a crypto winter” – this is an extended period when prices fall and remain low, just like they did between early 2018 and mid-2020.

Should You Buy the Dip? This is how you can Be Smart When Investing in Crypto

Experts say this time could be a good time to get into the crypto market while prices are low, but until you’ve assessed your risk tolerance and prioritize other aspects of your finances, like saving for an emergency, paying off high-interest debt, and investing in a traditional retirement account, etc… don’t do it.

If there’s one thing you must know about investing in crypto-currency, it’s that it’s volatile and very much unpredictable. Values can/may fluctuate by the minute driven by speculation, hype, and the whims of broader economic conditions. As a Potential investor looking to buy in now while the market is down, you must understand that price fluctuations are par for the course, and be prepared for prices to fall even more. If you can’t handle the constant and sudden market swings, then you shouldn’t invest in crypto.

Now, when it comes to your general crypto investment strategy, I honestly advise to only put in what you’re cool with losing. Experts generally recommend investing no more than 5% of your portfolio in crypto.

Disclaimer: This video is not my content nor am I affiliated to it in any way. Posting of the video is merely for educational purposes. If you have any issues with the usage of this video, please contact me directly here.

Source: Chart Champions YouTube Channel

Type: Creative Commons