If you bought Bitcoin above $100,000, watching it trade around $81,000 today probably doesn’t feel great.

But I think many investors are looking at this backwards.

If you believed in Bitcoin enough to buy it at $100,000, $110,000 or $120,000, why would you suddenly stop wanting it when it’s substantially cheaper?

This week’s volatility is a perfect example of why I think periods like this can be opportunities to dollar-cost average.

First, What Happened This Week?

Bitcoin had a wild week.

It traded near $79,500 Monday, fell to roughly $75,000 Tuesday and Wednesday, and then exploded higher Friday—rising almost 6% in a single day and finishing around $80,900. Bitcoin is around $81,000 Saturday morning.  

And this happened despite some significant negative headlines.

The Federal Reserve raised rates by 25 basis points, while the CLARITY Act failed to advance in the Senate. Yet Bitcoin absorbed both events and recovered sharply.  

Friday was the reminder:

Bitcoin can move very quickly once fear disappears.

If You Bought at $110,000, Look at the Math

Suppose you originally bought:

1 BTC at $110,000.

You’re obviously down with Bitcoin around $81,000.

But suppose you buy another:

1 BTC at $81,000.

You’ve now invested $191,000 for 2 BTC.

Your new average purchase price becomes:

$95,500 per Bitcoin.

Bitcoin doesn’t need to return to $110,000 for your position to break even anymore.

It only needs to reach approximately $95,500.

That’s the power of averaging down.

And you don’t have to buy another entire Bitcoin. The same principle applies proportionally whether you’re buying $1,000, $10,000 or $100,000 worth.

This Is Where Investor Psychology Gets Weird

When Bitcoin was above $100,000, people wanted it because the price was going up.

Now it’s roughly 25% below its October 2025 record high, and suddenly people are afraid to buy it.  

To me, that makes very little sense if your long-term thesis hasn’t changed.

I’m not saying Bitcoin can’t fall again.

It absolutely can.

If you need this money next month, this isn’t the strategy I’m talking about.

I’m talking about someone who bought Bitcoin above $100,000 because they believed in where Bitcoin could be in five, ten or twenty years.

If that’s still what you believe, a lower price gives you an opportunity to acquire more Bitcoin and potentially reduce your average cost.

Institutional Demand Hasn’t Disappeared Either

The ETF picture was choppy this week, with substantial outflows earlier in the week, but U.S. spot Bitcoin ETFs ultimately finished the week with a modest net inflow after roughly $433 million poured in Friday.  

That’s worth paying attention to.

Bitcoin got hit with rate concerns, regulatory disappointment and ETF selling—and still finished the week back above $80,000.

What I’m Doing

I’m not trying to predict whether $75,000 was the bottom.

Maybe Bitcoin goes to $70,000.

Maybe it goes back to $90,000.

Nobody knows.

But my long-term thesis hasn’t changed.

There will only ever be 21 million Bitcoin, and I believe the amount of global capital competing for those Bitcoin will grow enormously over the coming decades.

So if I was prepared to own Bitcoin at $110,000, I’m even more interested in accumulating it around $80,000.

That’s the mindset shift.

Don’t just ask:

“How much am I down?”

Ask:

“If I still believe in Bitcoin, what can I do to lower my average cost?”

Sometimes a falling price isn’t telling you that you were wrong.

Sometimes it’s giving you another opportunity to buy the asset you already wanted—for less.

My view hasn’t changed: thinkm long, act early. — Prakash