Bitcoin’s Sharp Drop Below $95K: Why Dollar-Cost Averaging Is Back in Focus

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Bitcoin Drops Below $110K After Fed Cut, Traders Accuse Binance of Manipulation

The post Bitcoin’s Sharp Drop Below $95K: Why Dollar-Cost Averaging Is Back in Focus appeared first on Coinpedia Fintech News

Bitcoin’s sharp fall from nearly $126K to below $95K has wiped out over $680 billion, shaking confidence across the market. With fear rising and traders unsure what comes next, a key question has been circulating: Should you wait for the perfect bottom, or keep buying slowly over time?

This is where many analysts are pointing toward a familiar approach, Dollar-Cost Averaging (DCA). 

Here’s what it means?

Why an Old DCA Strategy Is Back in Focus

In times like this, the idea of trying to “time the bottom” gets riskier than simply buying over time. Dollar-Cost Averaging asks investors to buy a fixed amount of Bitcoin at regular intervals, regardless of price.

Supporters say this steady approach reduces stress and limits emotional decision-making

When prices fall, investors automatically buy more. When prices rise, they buy less. Over time, this creates a smoother average cost and protects them from sudden market shocks.

Analysts Call This a Reset, Not the End

Market experts argue that the recent crash has flushed out excessive leverage, giving Bitcoin room to rebuild from a healthier base. 

Analysts like Standard Chartered’s Geoffrey Kendrick suggest buying in stages rather than making one large move. The message from professionals is consistent: nobody can predict the bottom, but everyone can manage risk with discipline.

AI Tools Echo the Same Message

Even AI models, now widely used by traders, are highlighting patience over panic. ChatGPT recently described dollar-cost averaging as a disciplined strategy that helps investors stay focused during extreme volatility, not a perfect solution, but a practical way to survive turbulent markets.

There are still warning lights. Sentiment has turned sharply negative, and crypto remains highly sensitive to broader market moves.

As of now, Bitcoin is trading around $95,170, reflecting a drop of 7.8% with a market cap hitting $1.9 trillion.

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