Bitcoin’s Recent Volatility: How Price Swings Create Opportunity for Smart Investors
Written by
Lydia Kibet
Edited by
Cory Dudak
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Bitcoin’s price over the last month is a reminder of something every investor should learn. Short-term volatility is normal, but your investing strategy determines whether that volatility hurts you or works for you.
If you bought Bitcoin a month ago and compared your portfolio to today’s price, you’d be sitting on a noticeable drop. However, that dip creates opportunity for investors who prioritize time in the market over timing the market.
How Much Your Investment Would Be Today
On October 25, 2025, Bitcoin traded at around $111,642. Today it’s hovering around $88,000. That’s a roughly 21% drop in just a month. Regardless of the amount you invested, your investment would be in the red.
Here’s how much these amounts would be worth today:
- Your $1,000 would now be worth roughly $790.
- Your $5,000 would be approximately $3,950.
- Your $10,000 would be $7,900.
It’s frustrating to see your investment go down. However, this is why many investors tend to avoid putting all their money into the market at once.
Why Long-Term Investors Aren’t Shaken
Bitcoin recently hit all-time highs around $126,000 on Oct. 6, driven by investor demand. But a few days later, it began pulling back. That’s why cryptocurrencies in general are highly volatile. If you bought Bitcoin and expected it to continue going up, this past month could feel like a shake-up.Â
Bitcoin’s large price swings can be scary, but historically, these kinds of pullbacks happen frequently during long-term uptrends. The price can skyrocket, plummet, consolidate and then surge again. For short-term traders, these swings are stressful. For long-term investors, they create an opportunity to buy more at a lower price.
Why Dollar-Cost Averaging Wins
Dollar-cost averaging works especially during times like this. With Bitcoin falling from record highs to around $88,000 and slightly lower, many investors are wondering whether to hold or sell.
Dollar-cost averaging is investing a fixed amount at specific intervals despite of where the market goes. This strategy works well for long-term investors because you’ll avoid buying at the top. By dollar-cost averaging, you avoid the pressure of finding the perfect entry and instead focus on building steady exposure over time.
One of the biggest advantages of DCA is that it protects you from investing all your money when the price is high. If you had been investing in Bitcoin gradually when it was taking a nosedive, you’d have lowered your overall cost.
Another benefit of DCA is that it turns volatility into an opportunity rather than something stressful. When the price dips, your fixed contribution buys more Bitcoin. When the price rises, the same contribution buys less. This means you accumulate more units when the market is offering them at a discount and fewer when they’re expensive.
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