Bitcoin’s value has dropped by more than half.


Bitcoin’s price is falling, so you might be thinking if now is the time to purchase the dip.
The cryptocurrency’s price has dropped to $32,000 per coin as a result of the broader stock market selloff. According to CoinMarketCap statistics, this represents a more than 50% drop from bitcoin’s high of more over $68,000 per coin in November.

Bitcoin is no stranger to price volatility, as seen by its recent rise near $40,000 before plummeting. Its price peaked at $20,000 in 2017 before plummeting to under $5,000 the following year. In 2021, its price dipped below $30,000 before rising to November’s record high, and a 10% decline in a single day is not uncommon for investors who hold bitcoin and other cryptocurrencies such as ether or dogecoin.

Here’s everything you need to know about bitcoin’s recent drop and if it’s time to purchase.
Why is bitcoin falling in value?
Since late last week, cryptocurrencies have been sliding in tandem with a market selloff that has resulted in the Nasdaq Composite seeing its worst one-day percentage decrease since June 2020.

For months, the stock market has struggled as investors analyze what the Federal Reserve’s approach to rising inflation implies for financial markets generally. The Fed indicated last week that it will raise its benchmark interest rate by a half percentage point, following a quarter-point hike in March.
Raising interest rates makes borrowing more costly, which helps to keep food and gasoline prices under control. However, it has the potential to reduce the value of financial assets such as stocks and cryptocurrency, as well as making investors more risk-averse.

Should you purchase bitcoin right now?
If you’re looking for an entrance point into bitcoin, this isn’t a bad moment, according to Ouellette. However, it is dependent on whether you intend to invest in bitcoin for the long term or whether you intend to acquire and sell the speculative commodity rapidly.

If the stock market continues to fall, it’s difficult to picture bitcoin not following behind. According to Ouellette, bitcoin might trade below $20,000 in the near future. We simply don’t know.

While markets may continue to face short-term pressure due to macro factors, the “attributes that make bitcoin a great long-term investment still hold true today,” according to Mauricio Di Bartolomeo, co-founder and chief strategy officer of Ledn, a digital asset financial services company, in an email to Money.

“With increased usage and institutions like Goldman Sachs becoming involved,” he continues, “the current situation might give some purchasing opportunities for investors with long-term conviction.” Goldman Sachs just made its first bitcoin-backed loan.

Of course, not everyone is that enthusiastic about cryptocurrency due to the dangers associated with such investments. In addition to its tremendous volatility and speculative character, cryptocurrency’s future is also uncertain due to a lack of regulation.