The Ultimate Guide to Investing in Bitcoin and Crypto - Updated

By Alex Assoune Nov 23, 2025

Cryptocurrency has become a central topic in investing discussions, especially with Bitcoin and Ethereum dominating headlines. Investors often wonder: Why does Bitcoin drop? Should I invest in crypto or stocks? When is the right time to buy? And what are the best coins besides Bitcoin?

In this guide, we’ll break down the key insights, historical trends, and smart strategies to help you navigate the crypto market confidently.

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Why Bitcoin Dropped from November 2021 to June 2022

Bitcoin’s meteoric rise to nearly $69,000 in November 2021 was followed by a sharp decline below $20,000 by June 2022. This fall was driven by multiple factors:

1. Macroeconomic Pressures

Inflation surged globally, especially in the US and Europe. High inflation made investors wary of risk assets, including cryptocurrencies.
Federal Reserve rate hikes in 2022 reduced appetite for risky investments. Higher interest rates made safe assets like bonds more attractive.
Strengthening US dollar also impacted crypto, which is priced in dollars.

2. Market Sentiment Shifts

The “risk-off” environment caused investors to sell volatile assets.
Stock market declines, particularly in tech stocks, influenced Bitcoin, which has become increasingly correlated with equities.

3. Crypto-Specific Crises

The Terra/LUNA collapse wiped out billions and shook investor confidence.
Insolvent institutions like Three Arrows Capital (3AC) and Celsius forced liquidation of Bitcoin and other assets.
Deleveraging by exchanges and lenders triggered cascading sell-offs.

4. Psychological and Technical Factors

Profit-taking after the November peak accelerated the decline.
Key support levels broke, causing panic selling and triggering algorithmic trades.
Bitcoin’s narrative as an inflation hedge weakened, further reducing demand.

In short: The decline wasn’t caused by one event. It was a chain reaction of macro pressures, internal crypto failures, and market psychology.

Is a Future Bitcoin Crash Likely?

Predicting exact crashes is impossible, but risk factors exist:

Key Risk Factors

Monetary tightening – Persistent high inflation could force central banks to maintain high interest rates.
Liquidity withdrawal – Tighter credit markets may trigger forced liquidations.
Regulatory shocks – New regulations could spook investors.
Crypto-specific failures – Collapses of stablecoins or major platforms could create panic.
Correlation with equities – A tech stock sell-off can drag crypto down.

Stabilizing Factors

Increasing institutional adoption and regulated infrastructure may reduce volatility.
Favorable crypto regulations could boost confidence.
Bitcoin halving events historically create upward pressure.

Bottom line: A moderate crash is possible in the next 12–24 months. Full-blown bear-market conditions are less likely immediately but could occur around 2026, according to historical patterns.

Stocks vs. Crypto: Where Should You Invest?

Investors often debate: Should I invest in stocks or crypto?

Stocks

Pros:

Reliable long-term growth (~7–10% annually).
Backed by earnings, dividends, and cash flow.
Strong regulation and investor protection.

Cons:

Slower potential gains.
Sensitive to recessions and interest rates.

Crypto

Pros:

Huge upside potential.
24/7 global market.
Exposure to blockchain, DeFi, NFTs, and Web3.

Cons:

Extremely volatile.
Regulatory uncertainty.
Risk of hacks or exchange collapses.

Smart approach: Most investors use a mix: stocks for a foundation, crypto as a growth or speculative component.

Why Bitcoin Moves Differently on Weekends

Crypto trades 24/7, unlike stocks. This creates unique weekend dynamics:

Lower trading volume – Prices move more easily with smaller orders.
Retail trader activity – Many retail investors trade on weekends, creating short-term demand spikes.
No stock market influence – Crypto is unaffected by traditional markets when they are closed.
Fewer institutional algorithms – Professional traders reduce activity, allowing price swings driven by retail sentiment.

Key takeaway: Weekends can see pumps, but they also see higher volatility.

Are We in a Bear Market Now?

Current data suggests crypto is in or entering a bear market:

Bitcoin has dropped ~20% from recent highs.
Institutional demand is fading.
Key support levels have broken.

Implications:

Prices may remain low for months.
Recovery can be slow, but short-term rallies can still occur.
Not all cryptocurrencies are affected equally.

Bitcoin Seasonality and Bottoms

Some people claim Bitcoin always bottoms in October during bear markets. This is a myth.

Historical bottoms:

2014–2015: January 2015
2018: December 2018
2022: November 2022

Why the myth exists:

Bitcoin historically drops in September and bounces in October. This creates the illusion that October is the bottom.

Reality: True bear-market bottoms are usually in November–January, with October being a “recovery month.”

Strategies: DCA vs Waiting

Two main strategies exist:

1. Waiting for the “perfect bottom”

Pros: Potentially buys at lower prices.
Cons: Hard to time; risk of missing rallies.

2. Dollar-Cost Averaging (DCA)

Pros: Removes emotion, builds position gradually, reduces timing risk.
Cons: Buys some during dips, which may not be the absolute bottom.

Best approach: A combination — DCA some funds now, reserve cash for larger dips.

What to Buy Besides Bitcoin

Bitcoin is the foundation, but diversification helps:

1. Ethereum (ETH)

Powers DeFi, NFTs, and smart contracts.
Medium risk; strong developer ecosystem.

2. Large-cap Layer 1s

Solana (SOL), Avalanche (AVAX), Cardano (ADA), Cosmos (ATOM)
Cheaper alternatives to Ethereum with strong ecosystems.

3. DeFi Blue Chips

Chainlink (LINK), Uniswap (UNI), Aave (AAVE)
Key infrastructure with real usage.

4. AI & Infrastructure Tokens

Render (RNDR), Fetch.ai, Arweave (AR)
Emerging growth narrative combining AI and blockchain.

5. Stablecoins

USDC, USDT
For safety, yield, and buying dips.

Sample portfolio:

40% BTC
30% ETH
20% other major altcoins
10% stablecoins

✅ Key Takeaways

Bitcoin’s decline in 2021–2022 was caused by macro pressures, crypto failures, and market psychology.
A crash is possible in 2025–2026, but timing it is extremely difficult.
Stocks provide stability; crypto offers high-risk growth. A mix is usually best.
Bitcoin behaves differently on weekends due to retail activity and low volume.
Bear-market bottoms historically occur in November–January, not October.
Dollar-cost averaging plus holding cash for dips is the safest strategy.
Besides Bitcoin, Ethereum, large-cap Layer 1s, DeFi tokens, AI infrastructure, and stablecoins offer diversification.

🔑 Final Thought

Investing in crypto requires knowledge, patience, and strategy. Timing the market perfectly is nearly impossible. Smart investors build a solid foundation with Bitcoin, diversify into promising altcoins, use DCA, and reserve funds for opportunities — this approach maximizes upside while reducing risk.

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Disclaimer: The above content is for informational and educational purposes only and does not constitute financial or investment advice. Always do your own research and consider consulting with a licensed financial advisor or accountant before making any financial decisions. Panaprium does not guarantee, vouch for or necessarily endorse any of the above content, nor is responsible for it in any manner whatsoever. Any opinions expressed here are based on personal experiences and should not be viewed as an endorsement or guarantee of specific outcomes. Investing and financial decisions carry risks, and you should be aware of these before proceeding.

About the Author: Alex Assoune

Alex Assoune (MS) is a global health and environmental advocate. He founded Panaprium to inspire others with conscious living, ethical, and sustainable fashion. Alex has worked in many countries to address social and environmental issues. He speaks three languages and holds two Master of Science degrees in Engineering from SIGMA and IFPEN schools.

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