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Bitcoin has been having a rough year so far. The stock market is down, gold is down, real estate is down, crypto as a whole has followed that trend. Bitcoin is an asset that I want to own as much of as possible. I wrote my thesis on why Bitcoin is valuable here - https://www.financebycwt.com/crypto-blog/why-bitcoin-is-valuable and because of these reasons, I think Bitcoin will be far more valuable over the next several years than it is now.
When Bitcoin started to fall, I did continue to buy more of it. My goal is to own as much Bitcoin as possible and the price is something that I don't really care about too much. I mean, I care to some extent. I get a larger percentage of Bitcoin per dollar spent at $20,000 a coin than I do at $50,000 a coin so I obviously want Bitcoin to be cheaper than it currently is, but I don't care too much about percentage increase in Bitcoin. Why would I want something that I am planning to buy to be more expensive? Would not be the best strategy.
That said, when Bitcoin kept going down, I did temporarily turn off my buy orders. I started saving cash instead. This was because I believed that Bitcoin would continue to fall. I wanted to save cash that I could use to buy Bitcoin at a lower price. My main goal is to get my average price per coin down as much as possible.
I saw that Bitcoin was hovering around the $20,000 a coin mark for awhile, and it seemed to be steady at that point. I saw a lot of opportunity with that price point but then yesterday, something changed. FTX, which is the second largest crypto exchange, is having a liquidity problem. Binance was considering buying them to save them, but they saw so many problems with FTX that they decided they could not help. The downfall of FTX has caused a downfall of crypto as a whole, and Bitcoin is no exception.
With Bitcoin's new drop in price, it shows potential opportunity. It shows an even lower price point to accumulate coins at. It's already started to recover a little and is now worth around $17,000 a coin, but I do think that this is a good price point.
I plan to start deploying some of my cash into Bitcoin over a long time period.
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