Is it a good time to buy Bitcoin? | Business Upturn

Is it a good time to buy Bitcoin?


Bitcoin is at its lowest price since November 2020. However, this does not do justice the crisis that Bitcoin is currently in, because most of its historical growth since it was founded came in the past two years.

Heading into 2023, many will be wondering if this is the bottom of the dip for Bitcoin in which an inevitable rebound will take place – or, if the currency will ever make it back to its $68,789 all-time high. Today, it’s around 75% below that at just $16,665. When you’re only a couple of clicks away on from buying more Bitcoin, it makes you wonder if it is a good time to buy Bitcoin today.

Is it a good time to buy Bitcoin now?

Ultimately, when looking at when is it a good time to buy Bitcoin, the answer may come down to the time horizon of your crypto goals.

The long-term prospect of Bitcoin

If you’re looking for a retirement fund or 5-10 year investment, the case for buying Bitcoin is fairly strong.

Whilst there’s absolutely no inherent reason that Bitcoin must get back to its all-time high price levels – partly because there’s no real way to measure if it’s underpriced like you can a stock – the crypto crisis does appear to be temporary.

Bitcoin is essentially at the forefront of the industry. So, when the industry struggles, Bitcoin struggles, and vice versa. Because it’s not the most practical or useful coin (i.e. for transactional purposes or DeFi), Bitcoin is seen as a store of value more than some other coins. So it relies a lot more on general crypto sentiment.

Right now, FTX has been a huge scandal that has shaken confidence in the crypto world. But, not everyone would argue that the constant scandals are an existential threat to crypto – just look at the recent plans in the UK for further crypto regulation. Its path for becoming more credible appears to be laid out.

Is it a good time to buy Bitcoin right now?

As for Bitcoin specifically, it’s simply a coin that has never been under serious threat of losing its number 1 coin status. Of course, the practicality and efficiency of Cardano and many others do pose the question of whether Bitcoin will be environmentally sustainable enough to remain popular.

Short-term prospect of Bitcoin

For short-term investments, Bitcoin is in a highly volatile state right now making it high-risk. Whilst some believe that if the NASDAQ saw a 2000-style crash, Bitcoin would continue to drop to in price. Plus, the current cost of living and inflation crisis isn’t doing them any favours.

However, some technical analysis suggests that Bitcoin is close to hitting its price floor. From 2019 to just before 2021, Bitcoin hovered around $9,000. This is a concern for very short-term investors, who may believe the current drop will hit that floor. Overall, the sentiment over the next month or so is bearish among many analysts, whilst the sentiment across the next 12 months in 2023 is mixed.

When investing in crypto, it’s important to realize the dangers and volatility of the high-risk asset and invest with caution. When considering is it still a good time to buy Bitcoin, you may want to consider your time-horizon goals and the value that Bitcoin brings compared to other coins.