BTC Crashes Under $98K: Can Dollar-Cost Averaging Help Investors Turn Fear Into Opportunity?

Bitcoin has fallen sharply below the $100,000 mark, sending shockwaves through global crypto markets and officially pushing the digital asset into bear market territory. The flagship cryptocurrency dropped as much as 3.9% to around $97,956, deepening a sell-off that has erased more than $450 billion in market value since early October. 

After reaching an all-time high of roughly $126,000 just weeks earlier, Bitcoin’s sudden collapse reflects how quickly sentiment can turn in the high-risk world of digital assets.

This latest downturn, driven by a series of macroeconomic shocks and record-breaking liquidation events, marks one of Bitcoin’s steepest reversals in recent years. 

The cascade began when fears of a global trade war and rising economic uncertainty triggered panic selling and the largest one-day liquidation in crypto history, over $19 billion in leveraged positions wiped out within hours. In the days that followed, Bitcoin tumbled from its $122,000 weekly high to near $104,000, shaking confidence across the entire market.

Now officially in a crypto bear market (defined by a >20% drop from its peak), Bitcoin is struggling to find a floor. “High risk-off sentiment is canceling out optimism about a more clement environment for coins,” observed Susannah Streeter, head of money and markets at Hargreaves Lansdown, noting that investors are fleeing risky assets en masse.

Institutional buyers, once a cornerstone of Bitcoin’s 2025 rally, have largely stepped aside, amplifying price fragility and leaving retail investors to shoulder the volatility.

Crypto Bear Market 2025: Causes and Sentiment Shift

Bitcoin’s sharp correction stems from a convergence of global economic headwinds. The re-escalation of U.S.–China trade tensions, the announcement of steep tariffs, and ongoing worries about central bank tightening have fueled a broad retreat from risk assets. Adding to the pressure, a record-long U.S. government shutdown in late 2025 drained liquidity from financial markets, reducing institutional buying power and exacerbating Bitcoin’s decline.

This combination of macro uncertainty and thinning liquidity created the perfect storm for a sell-off. Within weeks, Bitcoin surrendered nearly all its gains for the year. The total crypto market, once up more than 40% in 2025, now clings to a meager 2.5% year-to-date increase.

Market sentiment has flipped from greed to fear. Derivatives data shows traders piling into protective “put” options, signaling expectations of further downside. 

“Crypto is not that unique from a market asset class perspective. It is a good old-fashioned risk asset,” notes Sapien co-founder Trevor Koverko, arguing that Bitcoin has yet to decouple from broader market turbulence.

Analysts also note that Bitcoin, despite its reputation as “digital gold,” has behaved much like a traditional risk asset, vulnerable to the same macro shocks affecting equities and commodities. Gold, for example, has surged roughly 66% year-to-date, vastly outperforming Bitcoin’s modest 10% gain.

Still, not all observers view the crash as entirely negative. Some analysts argue that the sell-off has purged excessive leverage and speculative froth from the system, potentially laying the groundwork for a more sustainable recovery. “The good news is that this crash has cleaned out the excessive leverage and reset the risk in the market,” said Nic Puckrin, crypto analyst and co-founder of The Coin Bureau, cautioning that Bitcoin still faces tough resistance levels before any lasting rebound.

For long-term believers in Bitcoin’s potential, the key question now is whether this volatility can be transformed into opportunity and whether strategies like dollar-cost averaging (DCA) offer a disciplined way to navigate the storm.

Dollar-Cost Averaging: Turning Bitcoin Volatility Into an Advantage?

DCA has emerged as one of the most discussed investment strategies in the wake of Bitcoin’s recent crash. The concept is simple yet powerful: invest a fixed amount of money into Bitcoin at regular intervals, weekly, monthly, or quarterly, regardless of the price. Over time, this approach smooths out the average purchase cost and removes the emotion and guesswork from market timing.

For instance, if an investor buys $50 of Bitcoin each week, that $50 buys less when prices are high and more when they drop. This automatic buying discipline can turn Bitcoin’s volatility from an enemy into an ally. When markets crash, DCA investors are effectively “buying the dip” by accumulating more Bitcoin at cheaper prices.

Historical data supports the effectiveness of this approach:

• A study found that investing just $10 per week into Bitcoin over five years, about $2,620 in total, would have grown to around $7,913, a return of over 200%. The reason for this impressive performance lies in Bitcoin’s extreme cycles: sharp sell-offs allow disciplined investors to accumulate more at lower prices, while subsequent rallies amplify long-term gains.
• Even more striking, according to Michael Saylor, an investor who had followed a $30-per-day DCA strategy from 2016 through early 2025 (investing roughly $98,000 total) would now hold a Bitcoin portfolio worth around $2.2 million. That outcome underscores how consistent accumulation, especially during downturns, can dramatically enhance long-term returns.

While not every period will deliver such outsized results, DCA has proven to be one of the most psychologically sustainable ways to invest in volatile assets like Bitcoin. It avoids the common pitfall of emotional buying and selling, and it keeps investors engaged even when sentiment turns bleak.

BTC Price Decline Below $98K — Experts Weigh In on Patience, Strategy and Risk Management

With Bitcoin trading under $100,000, experts remain divided on what comes next. Some see the current dip as a fleeting opportunity, while others warn that macro risks could keep prices depressed for longer.

Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, recently suggested a measured approach akin to DCA, buying in stages rather than all at once. 

• He advises allocating 25% now, 25% after confirmation of a trend reversal, and 50% later, arguing that “the dip below $100K may be the last one ever” for Bitcoin. 
• His team remains bullish long term, viewing sub-$100K prices as a potential “last chance” for accumulation before the next upswing.

Another practical method is to apply DCA into Bitcoin using a small, consistent percentage of your monthly surplus income.

“DCA Bitcoin with % of the surplus from your monthly income. If there’s no surplus, you have a different and bigger problem,” one analyst explained.

Historically, Bitcoin has often rebounded strongly in the fourth quarter, and some believe this pattern could repeat if macro conditions stabilize. On-chain data also indicates that long-term holders and large investors (“whales”) are quietly buying during the dip, shifting capital from weaker altcoins into Bitcoin as part of an accumulation strategy.

However, skeptics emphasize that volatility remains high and external risks, ranging from inflation to geopolitical instability, could keep Bitcoin under pressure. They caution investors not to underestimate how long “crypto winter” can last. The overarching message: stay disciplined, manage risk, and avoid overexposure.

ChatGPT’s Take: DCA Isn’t Magic — But It’s Smart in Volatile Times

According to ChatGPT, with Bitcoin dipping below $ 98,000, the market is clearly in a pullback phase. In this context, DCA emerges as a rational approach, not because it guarantees profits, but because it enforces discipline over emotion.

If ChatGPT were approaching this as a long-term investor (5–10+ years) with a high tolerance for volatility, it would view DCA as a sensible strategy right now. The method helps convert fear into opportunity, gradually accumulating Bitcoin while prices are under pressure, rather than attempting to “time the bottom.”

However, this approach only makes sense for those who believe in Bitcoin’s long-term fundamentals, such as its potential role as a store of value or “digital gold.” ChatGPT emphasizes that investors should only commit capital they can afford to lose or lock up for the long term.

For individuals with shorter investment horizons (1–2 years) or lower risk tolerance, ChatGPT advises caution. A smaller DCA allocation, or waiting for clearer technical and market signals, could be a more prudent move.

Additionally, ChatGPT underscores the importance of risk management. No single asset, even Bitcoin, should dominate a portfolio. Keeping position sizes reasonable helps shield investors from deep drawdowns or extended bear markets.

Should You Buy the Dip?

Bitcoin’s sharp decline below $100,000 highlights the ongoing tension between risk and potential reward in volatile markets. Buying the dip offers the possibility of significant returns if prices recover, but it also exposes investors to further downside should the bear trend persist. 

Historical data shows that Bitcoin’s recoveries can be rapid yet unpredictable, making timing a major challenge. Approaches such as DCA illustrate the trade-off between short-term volatility and long-term opportunity but do not remove risk. 

Ultimately, Bitcoin’s price swings reflect its dual nature as both a high-risk asset and a vehicle for potential long-term growth, leaving the balance between return and uncertainty at the core of any investment decision.

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About the Author

Dr. Guneet Kaur

Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.

Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.

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About the Author

Giuseppe Ciccomascolo

Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.

Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.

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