Investing in Bitcoin: Use price correction to accumulate for next upswing

Investing systematically can help investors benefit from volatility rather than be overwhelmed by it

After touching an all-time high of about $126,210.50 on October 6, 2025, Bitcoin witnessed a sharp correction and is currently trading at around $90,261. Experts suggest that instead of panicking and exiting, investors should use the correction to maintain a long-term orientation and, where suitable, accumulate more units in a disciplined manner.

 

What led to the correction 

The correction after the October peak was driven by a combination of global macroeconomic and market-specific factors.

 

On the macro side, markets grappled with shifting signals around monetary policy. “The Bank of Japan’s rate hikes and cautious signals from US officials regarding the pace of future Fed rate cuts contributed to uncertainty around the policy outlook,” says Ashish Singhal, co-founder, CoinSwitch. 

“While the Fed ultimately proceeded with rate cuts towards the end of the year, the initial lack of clarity prompted a temporary risk-off stance across global markets,” says Raj Karkara, chief operating officer, ZebPay.

 

The subsequent easing cycle, including further cuts in December, also coincided with seasonally lower liquidity (during the holiday season), which amplified volatility and limited immediate upside momentum.

 

Uncertainty was compounded by the prolonged US government shutdown, which added to economic uncertainty. “Limited access to key macro data made investors more cautious,” says Edul Patel, chief executive officer (CEO), Mudrex.

 

On the market side, the October highs were followed by institutional profit booking and year-end tax harvesting in the fourth quarter. “Excessive leveraged positions were unwound,” says Nischal Shetty, founder, WazirX.

 

It is also important to see the move in context. “The correction came after an exceptionally strong rally that delivered close to 100 per cent returns between October 2024 and October 2025, so profit booking and a cooling of short-term excesses naturally followed,” says Karkara.

 

What could support a revival in price 

While prospects of near-term volatility remain high, several factors could support a recovery in 2026 and beyond.

 

A key driver is the continued strengthening of institutional participation. “Global crypto ETPs (exchange traded products) recorded nearly $48 billion in net inflows in 2025. This trend is expected to accelerate further as more altcoin ETFs enter the market,” says Patel.

 

Bitcoin ETFs act as a gateway for larger pools of capital from global asset managers, enabling broader participation from pension funds, family offices, and professional investors while enhancing market liquidity.

 

Initiatives such as the progression of the US Strategic Bitcoin Reserve and continued corporate treasury allocations, most notably by firms such as Strategy (formerly MicroStrategy), are contributing to sustained demand and tightening available supply. Interest from hedge funds and high-net-worth individuals should continue to rise, as Bitcoin increasingly features in diversified portfolios as a long-term store of value and macro asset.

 

Macro liquidity and sentiment are also turning supportive. Improving liquidity conditions and a shift in market sentiment could support a recovery. “In recent weeks, central banks globally have injected nearly $150 billion into the financial system, easing tight liquidity conditions seen in Q4 and improving risk appetite,” says Patel.

 

At the same time, the Crypto Fear and Greed Index has moved back to “neutral” for the first time since October, signalling stabilising sentiment and suggesting the return of retail buying interest.

 

“Improving regulatory clarity across key markets and maturing infrastructure around custody and regulated investment vehicles have created a stronger structural foundation for Bitcoin,” says Karkara.

 

“As long-term capital enters, price movements will depend more on allocation decisions than on short-term speculation,” says Shetty. Growth is expected to be more measured, driven by allocation decisions and real-world adoption rather than speculative excess.

 

What could go wrong 

Macroeconomic and geopolitical uncertainties remain key threats to crypto performance. In the past year, tensions between the US and China led to periods of heightened selling pressure as concerns around global growth weighed on sentiment.

 

“Any escalation involving major economies such as Russia, the EU, or China could trigger risk aversion, increase volatility, and dampen price momentum,” says Patel.

 

Key lessons from 2025 

Bitcoin’s performance in 2025 reinforced several lessons that are especially relevant after a sharp correction.

 

First, volatility is a natural part of the asset class, even during broadly positive market phases. “The rally and subsequent correction also reflected familiar dynamics — profit taking, leverage unwinding, and a broader shift towards risk-off sentiment amid global macro and geopolitical developments,” says Shetty.

 

Singhal says that a correction offers investors an opportunity to reassess their risk appetite.

 

Yet the year also demonstrated that periods of correction can create meaningful opportunities. “Investors who accumulated during pullbacks benefited when Bitcoin rebounded strongly to record new highs,” says Karkara.

 

Second, the bigger lesson is the importance of a long-term investment approach over short-term speculation. Like all financial assets, Bitcoin moves in cycles. Investors who focus only on short-term swings often risk missing larger, long-term gains. “Maintaining a long-term perspective remains critical because Bitcoin’s value creation has historically played out over extended cycles rather than short-term moves,” says Karkara.

 

Third, process matters. A disciplined approach — such as investing through a Systematic Investment Plan (SIP) — helps investors manage volatility, reduce the impact of market timing, and steadily build exposure over time. This approach is better suited to long-term wealth creation than chasing quick returns.

 

Retail investors should remain mindful of leverage, market cycles, and macro risks, and avoid making decisions based solely on short-term price movements or market narratives.

 

How much Bitcoin should you hold 

Bitcoin allocation should align with an investor’s risk appetite and financial goals. Remember that for highly volatile assets, the ideal strategy is to invest only what you can afford to lose.

 

“Conservative investors should allocate 2–5 per cent of the portfolio. Moderate-risk investors may allocate 5–8 per cent. High-risk investors may allocate up to 10–15 per cent,” says Patel.

 

Precautions to adopt 

Bitcoin is volatile and is still an emerging asset class. “Investors should do their own research and make a small start,” says Singhal.

 

Avoid concentrating too much capital in one go or in one asset. “Investors should start with small portions of investment rather than putting all hard-earned money into Bitcoin,” says Singhal.

 

Instead of deploying large amounts at a single price point, adopt systematic approaches to reduce the impact of short-term price fluctuations and encourage consistency over speculation.