Bitcoin Briefly Slips Below $105,000. Is It Time to Buy?

The initial October optimism that pushed Bitcoin(CRYPTO: BTC) to a new high has quickly faded. On Friday, Oct. 17, Bitcoin slipped below the $105,000 mark — a 17% drop on its Oct. 6 peak of over $126,000. Prices moved slightly higher over the weekend, but uncertainty rules as investors try to make sense of credit concerns and the largest liquidation event in crypto history.

An unexpected China tariff threat on Oct. 10 jolted markets and triggered a cascade of liquidations. CoinGlass data shows that over $19 billion in leveraged positions was wiped out in what’s being called “Crypto’s Black Friday.” The flash crash, and concerns about private credit quality, are driving a wider risk-off sentiment.

For investors, this raises the question of whether it is a good time to buy. That depends a lot on your investment thesis.

Image source: Getty Images.

Is it time to buy Bitcoin?

When cryptocurrency prices fall, there’s often a rallying social media cry to “buy the dip.” It sounds great in theory, but it isn’t always that simple in practice. For starters, it is almost impossible to know how far Bitcoin might fall so you can call the bottom. There’s also no point in trying to buy the dip if you don’t think Bitcoin has long-term potential.

In terms of the dip itself, it’s worth noting that Bitcoin’s price is still up about 60% year over year, and that cryptocurrency investors are used to dramatic price swings. That doesn’t stop these big drops from being unnerving. Even so, there’s solace to be taken from the fact that Bitcoin has always erased its losses and gone on to set new highs.

While there are no guarantees, Bitcoin could have long-term potential, and various institutions like ARK Invest are optimistic about its future. ARK’s most bullish price target for the lead crypto is $1.5 million, based on its potential as an emerging market currency, an institutional asset class, and even as “digital gold.” In its latest report, ARK points out that Bitcoin balances in corporate treasuries increased by 40% in 2025, and that spot Bitcoin ETF balances have reached new highs.

Bitcoin’s digital gold credentials are questionable

One notable driver behind Bitcoin’s growth in 2025 is that it appears to be maturing as an asset. The influx of institutional funds not only buoyed the price, but it also reduced volatility. That gave more credence to the argument that Bitcoin could act as a form of digital gold — a store of value that may hold its worth over a long period.

Any hedge against uncertainty has a lot of appeal today, as people look to protect their investments against inflation…