As of this writing on Jan. 28, Bitcoin (BTC 1.90%) trades at $89,350 per digital coin. It has hovered at this level since Jan. 21, down from an all-time high of $126,198 last October.
This retreat could be the start of the next crypto winter, with lower Bitcoin prices and struggling altcoins in store for the next couple of years. Things could be different this time, though — maybe I’m looking at a temporary drawdown before the crypto market takes off again. And maybe (just maybe) it’s the harbinger of a deeper crypto dip and the end of cryptocurrency investing as you know it.
So, is Bitcoin a smart buy around $90,000, or is it better to stay away for now? Let’s take a look.
There are a few versions of this argument:
The pessimistic forecasts range from a slower cyclical recovery to complete Armageddon.
On the other hand, Bitcoin investors have many reasons for optimism.
Bitcoin’s bulls and bears both have brawny arguments. The last two years brought many changes, adding up to a bumpy ride and modest price gains. So I understand if you disagree with my conclusion. I’m not here to change your mind about Bitcoin, but to summarize what’s going on and how you can benefit.
On that note, I see real value in the Bitcoin ETFs and expect them to keep adding value over time. Quantum computing is many years, maybe a couple of decades, away from breaking cryptocurrency encryption, giving Bitcoin and others plenty of time to adopt quantum-resistant algorithms. And Bitcoin’s peerless scale makes it difficult to usurp the leader with a smaller cryptocurrency — even if it brings better ideas and next-generation technology.
For these reasons, I expect Bitcoin to build value in the long run. A familiar crypto winter could take hold in 2026 and 2027, and that’s OK. If so, I’d treat this period as a buying opportunity.
Mind you, Bitcoin ETFs and actual crypto holdings already account for nearly 4% of my overall portfolio. That’s above the investment-bank recommendation of 2% that I mentioned earlier, so I might just stick with this balance. The crypto stake should expand naturally over the years if I’m on the right track.
