Why calculating the cost of Bitcoin dollars could be your best bet in today’s market

Why calculating the cost of Bitcoin dollars could be your best bet in today’s market

  • Bitcoin has been falling continuously for the past few weeks, largely due to the FTX crash
  • Institutional investors like the Purpose Bitcoin ETF Holdings have not yet bought back despite the discount.

Bitcoin’s (BTC) latest crash has done more harm than good to investor sentiment. Those who have watched the market closely may have noticed that investors are rather shy about buying back.

If you’re in the same boat, here are some considerations that can help you better understand the current situation.


Read the Bitcoin (BTC) price forecast for 2023-24


Bitcoin’s price has been falling continuously for the past few weeks, largely due to the FTX crash. Reports of an FTX hacker followed soon after. BTC has barely had enough time for a significant recovery and its latest performance is a shadow of its former highly volatile self. Price isn’t the only thing affected.

Investor sentiment also took a huge hit, dampening Bitcoin’s ability to recover. Investors are afraid to buy back just for the price to drop lower. In addition, most buyers are still on the sidelines for fear of post-FTX risks. Institutional demand is a segment that has taken a big hit.

Target Bitcoin ETF holdings

Source: Glassnode

Institutional investors like the Purpose Bitcoin ETF Holdings have not yet bought back despite the discount. This is confirmation that investors are waiting to see if the market will recover.

The lack of significant demand is evident in the low execution of leveraged positions following the latest crash. This is seen in Bitcoin’s estimated leverage ratio, which has fallen significantly this week.

Bitcoin futures estimated leverage ratio

Why dollar-cost averaging makes the most sense for Bitcoin

Many investors are still afraid to buy into BTC, especially now. This has affected his ability to bounce back. However, this does not mean that the current market situation is a bad time to buy.

The market could recover gradually, and those waiting for an opportunity to buy the bottom have missed an opportunity. On the other hand, it could fall even further.

Timing the market is quite difficult, especially in the current market conditions. So the best strategy would be to move to the dollar cost average after every dip.

Following in the footsteps of whales can also be a useful strategy. For example, BTC has experienced some relief from the bears over the past two days. It is no coincidence that whales have accumulated in the same time and thus contributed to the latest uptick.

Bitcoin addresses with more than 1,000 BTC

Well, Bitcoin is heavily discounted from its current high, which means that the current price level is ideal for entry into the market. However, there is still a risk of more downsides, but BTC has a history of unexpected rallies. A dollar-cost average strategy during any dip is the best bet for long-term investors.

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