Should You Buy the Bitcoin Dip?

Bitcoin (BTC) has dropped 5.5% over the last week, now hanging out at $62,524 (BTC/USD). Is this a good time for investors to buy?

The coin has fallen 1.73% and seems to be dropping quicker as Monday morning progresses. There is a good chance that the token will continue to fall throughout the day.

The reason for the drop can be partially attributed to negative inflation data that continues to be released, with new information Friday painting a bleak picture. The US personal savings rate fell 3.2%, which is as low as it has been in months. Consumer spending has overtaken income for several months in a row as well, which places the US economy in a precarious position and points to further inflation increases rather than a return to normal anytime soon.

This struggling economic environment is not good for Bitcoin or the rest of the cryptocurrency industry, and it is unlikely that Bitcoin will make a major comeback anytime soon.

Is This a Good Time to Invest in Bitcoin?

Even though Bitcoin is down and is likely to stay down for a while, there are high hopes among industry veterans that the coin will recover. They expect Bitcoin to surge well past $70,000 in the future, probably at some point this year. The extremely hopeful forecasts that call for Bitcoin hitting $100,000 seem unrealistic now, but there is still an outside chance that could happen.

We do believe that Bitcoin will recover at some point in the next couple of months, and there is reason to believe that Bitcoin has just about reached its support level.

This means that now is a fine time to invest and that any investment in Bitcoin at this low point will likely pay off in the near future. This is a coin that has had tough times over and over again in its lifespan and will likely have them again, but it has also proved resilient. We expect Bitcoin to move well past its current point and be profitable to those who invest now while the price is low, as long as they are willing to be patient. 

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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