Market Crash: Is This the Best Time to Load Up on Cryptocurrency?
Key Points
Until Bitcoin recovers, the broader crypto market is unlikely to head higher.
If history is any guide, the leading crypto has further to fall in 2026 before eventually recovering.
While there's a case to be made for picking up the digital coin on the cheap, investors need to be aware of the risks involved.
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It's tough times out there for cryptocurrency investors. All the big names -- including both Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) -- are down at least 25% for the year. And more speculative names are down as much as 40%.
In short, what started as a dip has now become a full-blown market crash. So, are there any cryptocurrencies you should be looking to buy right now?
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The four-year crypto cycle
The first thing you need to know is that crypto is highly cyclical, typically trading in four-year cycles of boom and bust. Three really good years are followed by one really bad year. And then the cycle renews.
The key cryptocurrency in this cycle is Bitcoin, the behemoth that still accounts for 58% of the total market cap of the crypto market. As it goes, so goes the broader market. So if the digital coin is in bust mode, then most other cryptocurrencies are as well.
Image source: Getty Images.
That's why there's a legitimate reason for concern right now. Bitcoin is down 25% in 2026. Even worse, it's down 47% from its all-time high of $126,000 in October. That type of steep downward slide has made it close to impossible for any cryptocurrencies to gain momentum right now.
And wait, here's the really bad news: The crypto may still have further to drop. In previous market cycles, it has shed as much as 94% of its value. In fact, Cathie Wood of ARK Invest has documented five different cases of Bitcoin losing 75% or more of its value during very steep drawdowns. So there could be plenty more pain on the way, given that Bitcoin has "only" lost half of its value thus far.
Possible cryptocurrencies to buy now
There are some glimmers of hope, however. For one, ever since the start of hostilities in the Middle East, Bitcoin appears to be decoupling from the broader market. That's music to the ears of big institutional investors, who are looking for safe-haven assets that are completely uncorrelated with the broader financial market.
Moreover, if you think that Bitcoin has hit rock bottom, then now could be a buying opportunity. You would be acquiring it on the cheap, at a time when it's hugely discounted. Remember when it was trading above $100,000 six months ago? That seems like a distant memory right now.
Or, if you still don't trust Bitcoin, you could decide to invest in one of the more speculative altcoins that are performing well right now. At the top of my list are AI cryptocurrencies such as Bittensor (CRYPTO: TAO), which is up a stunning 41% this year. As long as the AI investment thesis is going strong, Bittensor should continue to climb in value.
At the end of the day, however, now is not the best time to be loading up on cryptocurrency. There's likely still further for Bitcoin and crypto to fall before the recovery begins.
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Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Bittensor, and Ethereum. The Motley Fool has a disclosure policy.
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