Should You Buy Bitcoin When The Price Is Below 120,000 USD?

Bitcoin is no longer a strange name in the global financial market. After more than 16 years of existence, this oldest and most valuable digital currency in the world has become an asset of special interest to investors. With an impressive growth rate of 879% over the past 5 years as of 21/8(, many long term investors are certainly considering owning Bitcoin in their portfolio. Bitcoin – The Opportunity Is Still Very Large On August 13th, Bitcoin reached a new all-time high of 124,457 USD before correcting down by about 9%, currently trading below the 120,000 USD mark. For many investors, this could be an attractive time to enter the market. A common question asked is: Is it too late to invest in Bitcoin? The answer may surprise many: It's not too late. A recent survey report from Bank of America shows that 75% of fund managers worldwide have not held any investments in cryptocurrencies. This is particularly noteworthy considering the outstanding growth of Bitcoin in recent years. While part of the reason stems from restrictions in investment portfolios, it also means that the potential for market expansion is still very large. The emergence of spot Bitcoin ETFs in the US and many other countries is making it easier to invest in Bitcoin, especially for traditional financial institutions. Bitcoin and Its Competitive Potential with the Global Financial System Currently, the market capitalization of Bitcoin is about 2.2 trillion USD. Compared to the total value of global assets – including stocks, bonds, real estate, and commodities – this figure is still very small. Michael Saylor, a billionaire and a strong supporter of Bitcoin, believes that in the next two decades, an increasing amount of asset value and capital flows around the world will be shifted to Bitcoin, thereby driving the value of this currency to new heights. Moreover, governments have not yet deeply engaged in the market. For instance, the US currently holds a gold reserve worth about 1 trillion USD. If Bitcoin becomes a strategic reserve asset globally, the potential buying power from nations could push the price of Bitcoin to unprecedented levels. Correct Investment Thinking with Bitcoin Although the Bitcoin price chart is impressive, we cannot overlook the periods of strong volatility. This year, while many believe that Bitcoin is becoming more mature, it still fluctuates like a growth tech stock. However, as more institutional investors participate, stability may improve in the future. For long-term investors, every price correction should be seen as a buying opportunity rather than a cause for concern. However, it is important not to invest solely for short-term profit. History has shown that those who patiently hold Bitcoin through the ups and downs tend to achieve superior results. If you have a vision of at least 5 years, allocating a small proportion of Bitcoin in your investment portfolio is something to consider. Although future profits may be difficult to achieve massive growth like before, with its limited supply characteristics and globalization potential, Bitcoin remains one of the most desirable assets to own today. Currently, with Bitcoin trading below 120,000 USD, this could be a golden opportunity to hold the world's number one cryptocurrency – of course, provided you fully understand the risks and invest within your own risk tolerance.