Bitcoin has taken a huge hit in the past month. In the year 2022, the crypto market was looking at a gradual decline, however in June 2022 the market dove into a ditch. It is safe to say that it has been a stressful time for investors and everyone involved directly or indirectly in the cryptocurrency arena. Unanimously, the stock market faces a crisis with the surging inflation amid Russia’s war on Ukraine. It anticipates higher interest rates and fears recession.
Experts suggest that Bitcoin currently is undervalued at USD 19, 600 as of today. It went down 70% from its all-time high of USD 69,000 in 2021. Bitcoin dominates the market with approximately 63%, as it incurs a plunge, other cryptocurrencies see a decline in value as well. In June, Bitcoin saw a 40% drop in price.
Some experts suggest that these prices will drop lower. According to the founder of Delta Blockchain Fund, Kavita Gupta, this could be the beginning of ‘crypto winter’. According to her technical analysis, Bitcoin can go down to USD 14,000 in the upcoming months. These prices will remain low for an extended time, declaring it to be the ‘crypto winter’.
What is the Approach to Invest?
You should never invest more than you are willing to lose. There is no guarantee of return when investing capital in the stock or cryptocurrency market. It has a volatile nature, and your technical analysis along with your luck plays a huge role.
It is recommended you use the dollar-cost averaging approach when thinking of putting your money in. In this way, you divide your total investment into parts and place your money in Bitcoin over time. This strategy is to cater to the volatility of the market.
Experts recommend only putting 5% of your portfolio in crypto for its a volatile market. Bitcoin and Ethereum are the two leading coins to invest in. They have the highest market capitalization, with Bitcoin leading the way.
Right Time To Buy?
Experts suggest that it may be the right time to get into the crypto market as the prices are low. However, this is only after you have assessed your risk tolerance and managed all your finances. Since values fluctuate by the minute, which is sparked by the investing bodies and the hype created by the media. Potential investors should step into the market bearing in mind that the price may fall at any given point.
If you cannot stomach the swings in the market, perhaps this isn’t for you.
Best Time of The Month To Buy?
It is difficult to provide a definite answer as the value of cryptocurrency is constantly changing. Tentatively, at the time, the analysis indicates that the best time to purchase crypto is at the end of the month. Values tend to see a high in the early days and a drop in the latter days of the month.
In fact, This varies with newer and smaller cryptocurrencies. However, since the leading coins such as Bitcoin and Ethereum capitalize on the market, the smaller coins tend to stay consistent with them.
In Conclusion
It is difficult to time your buy the dip as the crypto market is uncertain. Similarly It’s hard to have risk tolerance and avoid the fear of missing out on the opportunity of a good selling period. However, being patient is a virtue when you’re in the crypto market. The prices are low right now, experts recommend stepping into the market as long as your finances give you a heads up. A safe bet is to invest for the long term and base your sell on the analysis of the market.
We do not endorse any cryptocurrency or give financial advice. Make investments at your own risk.
