Of course. As with all speculative investments, anyone who invests in Bitcoin or other cryptocurrencies can potentially gain or lose money. Hence the advice to never invest more than you can lose.
But, why is Bitcoin dropping?
BTC decline coincided with lack of stablecoin inflows Purely in terms of daily volume, Tether is the most traded cryptocurrency in the global market. A few hours before the BTC drop occurred, Ju tweeted: “Fewer people are depositing #stablecoins to exchanges. BTC Buying power is weakening in the short-term(72h).”
Short, what will Bitcoin do in a recession? Bitcoin may even benefit from a recession, said Balani. Central banks like the US Federal Reserve finance stimulus packages by increasing the monetary supply. “This will put pressure on currencies and can turn out to be positive for Bitcoin prices in the medium to long term,” he said.
Really, should you buy Bitcoin when its low?
You may never know, but if it is continuously falling, it could be best to buy it in chunks. This is called averaging down. You can buy a certain amount of Bitcoin this week and keep some of your money to buy the following week. If the price falls again, you'll benefit as your average price will be lower.
What happens to Bitcoin if the stock market crashes?
If the stock market crash leads to global recession, bitcoin will suffer along with the rest of the world. People need to pay bills, debts, and food, and few merchants accept bitcoin.