Bitcoin's (BTC 0.86%) price recently dropped below $70,000. It's now pulled back more than 40% from its all-time high last October and has given up all its gains since President Trump won the election on Nov. 5, 2024. That sell-off can be attributed to elevated Treasury yields, a murky outlook for future interest rate cuts, and other macro headwinds -- which all drove investors to book profits and rotate toward more conservative investments.
As Bitcoin's price plunged, leveraged liquidations at key support levels accelerated the sell-off. That's why many investors might feel like a deer stuck in the headlights right now. However, I think the smartest move Bitcoin's long-term investors can make today is to simply do nothing.
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Why should Bitcoin's investors do nothing?
Bitcoin is a notoriously volatile investment. Looking back at the past five years, we've already seen it sink from $68,000 in November 2021 to a multi-year low of around $16,000 in November 2022, then rally to a record high of more than $126,000 in October 2025.
Plenty of investors likely panicked and sold their Bitcoin at $16,000, or desperately chased it when it hit $126,000. So instead of hopping on the bearish or bullish bandwagon, it made more sense to take the contrarian view both times.
But since it's impossible to tell how low Bitcoin will actually drop before it bottoms out, it's too risky for investors to aggressively buy it right now. So if you're still bullish on Bitcoin, it's smarter to do nothing, wait for it to rebound, and accumulate more as it rallies again.
CRYPTO: BTC
Key Data Points
Why could Bitcoin rally even higher over the long term?
Bitcoin is under significant pressure, but the bullish thesis remains intact. It will become harder to mine with each halving (which halves its mining rewards every four years), and nearly 20 million of its maximum supply of 21 million tokens have already been mined.
That scarcity could make Bitcoin more comparable to gold, silver, and other hard assets, which can all insulate investors from the long-term devaluation of fiat currencies. So if you expect governments to continue their expansionary monetary policies, it would be smart to convert some of your cash into Bitcoin. Its spot price ETFs, which were initially approved two years ago, will also remain a simple way for institutional investors to invest in the cryptocurrency.
If you still expect those long-term tailwinds to kick in, then it's a good idea to tune out the near-term noise, do nothing with your Bitcoin holdings, and come back in a few years.
