The Bitcoin price has recently dropped dramatically. As macroeconomic factors continue to dent its price, does this mean now is the time to buy? We discuss it in the article below.
Bitcoin has had a turbulent 12 months. It has reached dizzy new heights, then plunged back down. With recent economic conditions spooking the markets, it has taken another twist and dropped like a rock. But this lower price presents a new opportunity. Is now a great time to buy Bitcoin, or should you hold on and seek further dips?
The Drop-in Bitcoins Value
The start of this week was not good for Bitcoin. It lost around 7% of its value on Sunday 6th, then had a small rebound. It fell to around $77,500 USD, dipping below the $80,000 level that it had hovered above for a large proportion of the year. Other cryptocurrencies like Ethereum and Solana also dropped, shaving off approximately 12% of their value. Overall, the crypto market fell by around 7%. In terms of Bitcoin to AUD, the price at the time of writing is $130,683. Its lowest level was $122,566 AUD on Monday, with a slow recovery mounted since.
All of this follows plans for tariffs across the board. This has worried global markets, which have seen prices cut across various industries. JP Morgan raised the risk of recession to 60 per cent, with many US markets dropping by up to 5%. It is estimated that around $7 trillion has been wiped off global markets. This saw a large number of long liquidation sales in Bitcoin, around $250 million in a single day. As further movements are feared, investors seem to be moving towards less risky assets.
Strategy Losses
One company that has invested heavily in Bitcoin and has been hit hard is Microstrategy, now known simply as Strategy. As Bitcoin dropped to under the $80,000 USD mark, it saw around $5.9 billion in losses. It has now warned of huge losses in Q1, it explained in a Monday filing with the Securities and Exchanges Commission. This will however be partially offset by $1.69 billion in income tax benefits.
Strategy had been on a Bitcoin buying spree as it boomed towards the end of last year. It has said that the quarter has seen $7.69 billion generated from its share offerings. The company bought $1.92 billion worth of Bitcoin totalling a value of 22,048 bitcoin at the end of March. This took the company’s total to 528,185 bitcoins. Share prices obviously fell as a result of this. It saw 8.7% wiped off the price on Monday. It is now down by 7.4% on the year in total.
Could Bitcoin Rival Gold?
Despite these dips, there are still prominent voices that believe Bitcoin will bounce back and continue to rise. This could signal that it is, in fact, the ideal time to buy low for long-term investors. Prominent investor and analyst Adam Back has said it could begin to take the market share from gold over the next decade. Speaking at Paris Blockchain Week 2025, he also added that monetary instability and rising inflation will push it higher and into more adoption.
One comment he added was that it is like gold in terms of scarcity, which is undergoing an adoption curve. This is the acceptance of a new product or innovation by society.
This theory comes down to inflation rates. While Federal Reserves are predicting a 2.18% increase on average, many others are suggesting a larger uptick in inflation. He believes this is going to equate to around 10% or 15% over the next decade, which will push up hard assets. This means that Bitcoin itself will rise by a similar amount.
Could Rising Bond Yields Be a Sign?
One key to how the long-term global economy and its impact on crypto will be, could come from US bonds. While the stock market plunged, bond yields jumped. When investors buy treasuries in the United States, they receive a yield. The more demand they have, the lower the yield becomes.
As they are seen as a safe investment, this shows they were sold off and not sought after. It actually suggests people may be moving towards riskier assets, hinting that they expect strong growth or increased inflation.
Generally, Bitcoin has tended to trade in a risk asset class. They tend to do better when interest rates are low. This was made even more confusing by the fact that while stock plunged, crypto dropped by a relatively small amount. Some think this signifies it is decoupling from macroeconomic trends.
So is it the time to buy? Bitcoin is low in price, considering how it has been over the last few months. With so much economic uncertainty, it all depends on the personal level of risk. It seems it will rise in the long term, but deciding if it will go lower before that, signalling an optimum buying time, is hard to guess.
