Why I’m buying Bitcoin and altcoins during this dip

When prices are bleeding and sentiment is awful, most people want to run from crypto. A smaller group does the opposite: they start buying. This article breaks down why some long-term holders see the current Bitcoin and altcoin dip as an opportunity, which coins they’re focusing on, and the key risks to keep in mind.

Bitcoin’s extreme fear signals

One of the main signals being watched right now is Bitcoin’s Relative Strength Index (RSI). The RSI is a momentum indicator that ranges from 0 to 100 and helps show whether an asset is overbought or oversold. Readings below 30 usually suggest the market is oversold; right now, Bitcoin’s RSI is around 15 – an extremely low level that historically has lined up with attractive long-term entry points.

The last time Bitcoin’s RSI was this depressed was in the summer of 2023, when BTC traded near $26,000. From there, the market eventually recovered and pushed to new highs. While no indicator is perfect, many long-term investors treat such extreme RSI readings as a sign to start scaling into positions rather than panic selling.

Bitcoin near its cost of production

Another important metric is Bitcoin’s estimated cost of production – roughly how much it costs miners, on average, to produce one BTC. Historically, deep bear market bottoms have often formed around or slightly below this level, as miners struggle to stay profitable and weak hands capitulate.

Looking back:

• In late 2018, Bitcoin traded down into this cost-of-production zone and even dipped slightly below it before the market eventually recovered.

• In late 2022, BTC again tested this range during the post-FTX capitulation.

Today, Bitcoin is once again trading inside a similar band. That doesn’t guarantee the exact bottom is in – price can always go lower – but it gives long-term investors a framework: historically, this has been an area where downside risk starts to compress relative to long-term upside.

If you want a deeper dive into why this kind of pullback can be a classic bottom signal, check out this breakdown of Bitcoin pullbacks and bottom signals.

Why some investors are buying altcoins now

While Bitcoin sets the tone for the entire market, some investors are quietly building spot positions in select altcoins they believe will survive and thrive into the next cycle. The key idea: focus on projects with strong adoption, institutional interest, or clear use cases – not the speculative coins that never recovered from past cycles.

Here are a few examples being accumulated right now, all in spot (no leverage) with a 3–4 year time horizon in mind.

Solana: high beta bet with a history of comebacks

Solana (SOL) has been one of the hardest-hit major altcoins in this downturn, trading roughly 80% below its recent all-time high around $62 set at the start of 2025. That kind of drawdown can look terrifying in the short term, but it’s not unprecedented for Solana.

In the previous cycle:

• SOL crashed about 96% from peak to trough, falling to around $8.

• From there, it rallied to nearly $300 in the next bull market.

This history doesn’t guarantee a repeat, but it shows that deep drawdowns have been part of Solana’s story before major recoveries. Many investors still see Solana as a key smart contract platform with strong developer activity and growing institutional interest, rather than a “dead relic” from a past cycle. That’s why some are comfortable adding to SOL at steep discounts, planning to hold through the next few years.

XRP: repeating its bear market pattern?

XRP is another coin being quietly accumulated. It’s currently down about 70% from its all-time high set in July of last year. In the previous bear market, XRP fell roughly 83% from its peak before eventually recovering in the next cycle.

Today’s drawdown is in a similar ballpark, which some investors interpret as a familiar pattern: heavy capitulation followed by a long accumulation phase. Combined with its ongoing institutional and cross-border payments narrative, that’s enough for some long-term holders to start building or adding to XRP positions again.

Sui and other next-cycle bets

Sui (SUI) is another altcoin on the accumulation list. It’s down about 86% from its all-time high, placing it firmly in “deep discount” territory. The thesis here is simple: Sui is seen by some as a serious layer-1 contender with enough backing and developer interest to still be around in the next bull market.

Beyond Sui, there’s a broader basket of altcoins being considered for long-term spot positions, including:

• HBAR (Hedera)

• Stellar (XLM)

• Ondo and other institutionally focused projects

The common thread is perceived staying power: strong teams, real-world use cases, or institutional partnerships that make it more likely these networks will survive multiple market cycles.

For a look at how some investors are averaging into these kinds of positions during sharp sell-offs, you may find this guide on buying the crypto crash useful.

Why spot, not leverage

A key part of this strategy is avoiding leverage for long-term holds. Instead of margin or futures, the focus is on buying spot and being prepared to hold for 3–4 years or more.

Reasons for this approach include:

• Volatility: Crypto can easily drop another 30–50% even after a big crash. Leverage can wipe you out before the recovery.

• Time horizon: If you believe in the long-term thesis, you don’t want forced liquidations cutting your position at the worst possible time.

• Simplicity: Spot holdings can be moved to a hardware wallet or secure custody and left alone, reducing emotional trading and overreaction to daily price swings.

Some traders may still keep a small, separate leveraged position for short-term speculation, but that’s treated as a side bet, not the core strategy.

Using Bitcoin as collateral and managing loan risk

Some long-term holders use their Bitcoin as collateral to access liquidity without selling and triggering a taxable event. Platforms that offer BTC-backed loans often include risk management tools like automatic top-ups.

Here’s how an auto top-up feature typically works:

• You deposit Bitcoin as collateral and borrow against it, creating a loan-to-value ratio (LTV).

• If Bitcoin’s price falls and your LTV rises to a set threshold (for example, 70%), the platform automatically adds more collateral from your balance to bring the LTV back down (for example, to 68%).

• This helps keep the loan “healthy” and reduces the risk of liquidation if Bitcoin drops further.

For instance, if a user’s LTV would hit 70% around a $43,000 BTC price, the auto top-up could kick in before that point, adding collateral so the position can better withstand a move toward $38,000 or lower. Of course, this only works if you actually have extra collateral available, and borrowing always carries risk, especially in a highly volatile asset like Bitcoin.

Macro headwinds: wars, rates, and the AI trade

Even with attractive on-chain and technical signals, the broader macro backdrop still matters. Several factors are weighing on risk assets right now:

• Geopolitical tension: Ongoing conflict involving Iran and the US, including drone attacks and retaliatory strikes, keeps uncertainty high and risk appetite low.

• Interest rate uncertainty: Markets are watching central bank policymakers closely, including figures like Kevin Warsh, for clues on whether rates might stay higher for longer or even rise again if inflation remains sticky.

• The AI trade: Massive flows into AI-related stocks and infrastructure can drain liquidity from other risk assets, including crypto, as investors chase what they see as the “hot trade” of the moment.

These headwinds can keep prices suppressed longer than expected, which is why any long-term accumulation strategy must be prepared for more volatility and a potentially extended sideways or downtrend before the next sustained bull run.

The risk of “relic” coins

One hard lesson from past cycles is that not every coin comes back. Many tokens from the 2013, 2017, and even 2021 eras never recovered after their initial hype faded. Some were tied to companies that failed, others simply lost developer interest and community support.

This is why selectivity matters. The focus here is on:

• Networks with real usage and active ecosystems.

• Projects with institutional backing or clear enterprise use cases.

• Major layer-1s or infrastructure plays that are likely to remain relevant.

Even then, there are no guarantees. Any altcoin position should be sized with the understanding that it could underperform Bitcoin or even go to zero. Diversification and conservative allocation are key.

Putting it all together

Right now, Bitcoin is flashing several classic late-bear or deep-correction signals: an extremely low RSI, price near its cost of production, and heavy short interest. At the same time, many major altcoins are down 70–86% from their highs, echoing past cycle drawdowns that preceded big recoveries.

For investors with a multi-year time horizon and a strong stomach for volatility, this environment can be a time to slowly build spot positions in Bitcoin and a carefully chosen basket of altcoins like Solana, XRP, Sui, HBAR, Stellar, and others with strong fundamentals or institutional interest.

None of this is financial advice, and there is always a real risk that prices fall further or that certain projects never recover. But if you believe crypto will see another major cycle in the next 3–4 years, these kinds of deep, uncomfortable drawdowns are often when the best long-term opportunities appear.