In case you didn’t know, bitcoin is on discount right now.
That’s according to two experts and a major financial institution who say bitcoin is currently $20,000 undervalued. jpmorgan chase recently valued the coin at $38,000, roughly 90% higher than its current price.
Reading: Should i invest in bitcoin now
Bitcoin could be worth as much as $100,000 within two years, and its fair market value is currently between $40,000 and $50,000, according to Jurrien Timmer, Global Macro Director at Fidelity Investments. Chris Brendler, Managing Director and Senior Market Analyst at D.A. davidson expects bitcoin to rise back to nearly $38,000 by the end of this year and $50,000 by the end of 2023.
“Bitcoin is a unique animal because it’s hard to say exactly how much it’s worth,” Brendler says. “You tend to have these exaggerated moves to the upside when people are just buying because they want it to go up in value. when it starts to go down, those people come out. but the price of bitcoin will grow more than it is today in the next few years.”
So what does this mean for the crypto-curious who are potentially considering bitcoin as an investment? Is now a good time to take advantage of the crypto market “sell” and invest?
The short-term risks of investing in cryptocurrencies may be worth its potential long-term rewards, according to some financial experts, as long as they don’t prevent you from meeting your other financial responsibilities and you can make your long-term clear. long-term goals in advance.
here is what you need to know before investing in bitcoin and other cryptocurrencies in the midst of the recession:
what is happening with the prices of cryptocurrencies?
bitcoin, ethereum and crypto prices have slumped along with the stock market in recent months as investors grapple with continued rising inflation, russia’s war on ukraine, rising interest rates interest and recession fears.
Bitcoin fell below $19,000 on Thursday, nearly 70% down from its all-time high of $69,000 in November 2021. Ethereum, meanwhile, fell to nearly $1,000 on Thursday for the second time in June, as the network prepares for a massive and long-planned update.
The crypto market crash in June came after the latest inflation report showed continued high prices for consumers and the Federal Reserve raised its benchmark interest rate by 75 basis points, the biggest increase in nearly three decades. Roughly $2 trillion was removed from the crypto market and the s&p fell into a bear market.
Bitcoin saw an almost 40% drop in June, reaching a low point below $18,000. Ethereum’s price fell almost 50% in June, reaching as low as $900 at one point.
Still, some experts believe bitcoin and ethereum prices could fall further. According to Kavita Gupta, venture capitalist and founder of Delta Blockchain Fund, it could be the beginning of a “crypto winter,” a prolonged period in which prices fall and stay low, as happened between early 2018 and mid-2020. says, based on its technical analysis of the market, that bitcoin could drop to $14,000 and ethereum could drop to $500 in the coming weeks or months.
should you buy the dip? how to be smart when investing in cryptocurrencies
Experts say now might be a good time to get into the crypto market while prices are low, but only after you’ve assessed your risk tolerance and prioritized other aspects of your finances, like saving for an emergency, pay off high-interest debt and invest in a traditional retirement account like a 401(k).
If there’s one thing you should know about investing in cryptocurrencies, it’s that it’s volatile and highly unpredictable. values fluctuate by the minute fueled by speculation, hype, and the vagaries of broader economic conditions. Potential investors looking to buy now while the market is down should understand that price fluctuations are normal and be prepared for prices to drop further. If you can’t handle wild market swings, you shouldn’t invest in crypto.
When it comes to your overall crypto investment strategy, only enter what you agree to lose. experts generally recommend investing no more than 5% of your portfolio in crypto. bitcoin and ethereum are the two cryptocurrencies that represent the best starting point for new investors, according to experts and nextadvisor’s investability score.
bitcoin has the highest score among all cryptocurrencies, followed by ethereum. Here’s how bitcoin and ethereum stack up against the rest of the cryptocurrencies that are consistently in the top 10 by market cap, excluding stablecoins: