Should You Buy Bitcoin While It's Under $70,000? The Answer Might Surprise You.

Bitcoin (CRYPTO: BTC) has traded below $70,000 since early June, continuing a poor year for the largest cryptocurrency and the broader market. The price sits at about $64,000 as of July 24, a 49% drop from its all-time high in October 2025.

"Buy the dip" has been a successful strategy with Bitcoin in the past, as it has eventually rebounded and gone on to new highs. If you're considering an investment, there are a few important things to know first.

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What's weighing on Bitcoin?

There are a few reasons Bitcoin is in a slump. The economy is fragile, in part due to the Iran war driving up prices, and the Fed has held off on rate cuts to combat inflation. Investors typically shift away from cryptocurrency and other high-risk assets during periods of economic uncertainty and high interest rates.

Artificial intelligence stocks have also stolen crypto's thunder over the last year, delivering explosive returns while crypto has been stuck in a bear market. Hype and excitement have helped fuel previous bull runs, and lately, all the excitement is around AI, not crypto.

Institutional investors, which contributed to Bitcoin's success in 2024 and 2025, have also turned from buyers to sellers. Bitcoin ETFs had over 500,000 BTC in net inflows during 2024, the first year they were approved by the SEC. There have been about 120,000 BTC in net outflows from Bitcoin ETFs as of July 2026, according to Cointelegraph.

Should you buy the dip?

The main case for buying Bitcoin hasn't changed. It's still the largest digital asset, with a market cap of $1.3 trillion, commanding 59% of the crypto market. It also has a much smaller supply than most cryptocurrencies, as there's a built-in maximum of 21 million BTC.

Recent indicators suggest Bitcoin may be slowly recovering. Analysis by Glassnode found that long-term holders, referring to wallets that have held coins for at least 155 days, recently flipped from distributing to accumulating Bitcoin. This shows that long-term holders are now buying the dip. Glassnode also found that the strongest accumulation was happening among the wallets with the smallest Bitcoin balances.

Although Bitcoin ETFs have seen net outflows for the year, that trend is also turning around. They recorded seven straight trading days of net inflows from July 14 through July 22, which could indicate that recent Bitcoin prices represent a buying opportunity for institutional investors.

If you're bullish on Bitcoin, you may want to take the same approach and add to your holdings on the dip. The current downturn is primarily due to the macro environment and not any issues with Bitcoin itself. However, be cautious about how much you invest -- keeping your total crypto allocation to no more than 5% of your portfolio is a good rule of thumb -- and be prepared for volatility. While Bitcoin has rebounded from previous downturns, it's not guaranteed to do so, and there's no way to know whether it has found its bottom or will sink lower from here.

Lyle Daly has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.