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Bitcoin is having a rough 2022 so far. It's down almost 6% since the new year started and is currently trading at a little less than $44,000. It makes sense why Bitcoin is getting hammered right now when one remembers how many people were predicting that Bitcoin would close the year at 100k a coin or higher. This was the common thought process amongst the Bitcoin community, and it looks like some were so confident that they bet on it through options. Now that that didn't happen, a lot of people lost a lot of money which could be driving the price down.
I predict that Bitcoin is going to struggle for the next few months. I think Bitcoin needs to gather up more support and stabilize a little before making its next run. With the failed 100k a coin prediction, I think a lot of short term traders will be leaving Bitcoin for a while which could be a good thing as long term investors build stability for the next run.
Bitcoin is an asset that I think most investors should have in their portfolio. It has a lot of upside potential so it makes sense to put a small percentage of one's net worth into Bitcoin. If one is young and has a higher risk tolerance, it makes sense to invest a higher percentage. Bitcoin is risky, but it makes sense to have some of your cash in risky assets.
I believe firmly that crypto is here to stay. I don't think that most cryptos themselves are here to stay, but I do think that Bitcoin has a very bright future ahead of it.
I am buying more Bitcoin during this downtime, and if I am right and Bitcoin goes even further down over the next several months, I will continue to buy even more.
This is all just opinion and should not be seen as financial advice.
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