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According to Dominic Rizzo, technology portfolio manager at investment giant T. Rowe Price, now might be the ideal time to buy Bitcoin. Speaking at a recent conference in Las Vegas, Rizzo laid out his case for why the current price levels make for a prime entry point—especially for long-term investors with diamond hands (and maybe a strong stomach).
Bitcoin Trading Near Its Mining Cost? That’s Usually a Big Deal
Rizzo points out that Bitcoin is currently hovering near the average mining cost per BTC, which he estimates at around $84,770. With BTC trading at roughly $87,000, we’re barely above break-even for miners.
Historically, this has been a strong indicator of market bottoms. In past bear markets, BTC has dipped below production costs—moments that turned out to be goldmines for those brave enough to buy.
Think Like a Commodity Trader, Rizzo Says
Rizzo likens Bitcoin to traditional commodities, where buying near production cost often means snagging a bargain. His message? This isn’t just speculation—it’s basic market economics.
He also stressed the growing relevance of blockchain and digital payments, especially as the world moves away from cash in favor of fintech and AI-powered financial services.
“The world is becoming more globalized, and we’re shifting toward digital payments,” Rizzo said.
Translation: The crypto train is moving—and Bitcoin is the engine.
Not Just BTC – Crypto Stocks Could Be Hot Too
If you’re not into directly holding crypto, Rizzo suggests looking at stocks tied to the crypto sector. Companies like Coinbase, Robinhood, or crypto mining firms offer exposure to the crypto boom through more traditional channels.
These firms benefit directly from market growth, raking in revenue through transaction fees and mining operations. So, if Bitcoin goes up, they go up—minus the private key headaches.
BTC Rallying, But the Waters Are Choppy
Bitcoin’s price has risen 4.5% in the past seven days, driven by bullish sentiment, looser monetary policy from the Fed, and more favorable economic vibes under the Trump administration.
But here’s the twist: Alongside this rally, Open Interest (OI) in Bitcoin derivatives has soared to $32 billion—a potential red flag. That kind of leverage makes the market ripe for sudden, nasty corrections.
Open Interest Hits $32B – Caution: High Leverage Ahead
Data from CryptoQuant reveals that leveraged BTC positions are at record highs, with OI sitting at a whopping $32 billion. Historically, spikes in OI often precede major corrections. If momentum slows or reverses, we could see massive liquidations, triggering a domino effect of sell-offs.
Translation: This market is a powder keg. One bad candle, and boom—liquidation fireworks everywhere.
When OI is this high, even a tiny price drop can set off a chain reaction, spiking volatility and giving traders whiplash. It’s crypto. Expect drama.
Is Bitcoin About to Go Parabolic – Or Implode?
If the rally continues, Bitcoin might enter a parabolic phase, potentially pushing toward new all-time highs. But remember: with great gains come great liquidation risk.
Right now, FOMO is in full effect, with BTC crossing $87,500 and speculative traders jumping in like it’s 2021 all over again. Leverage is increasing, which might push prices higher—but also makes the market extremely sensitive to negative sentiment.
Final Warning: Don’t Get Liquidated in the Hype
History shows that leverage-fueled rallies usually end with a brutal reality check. Key indicators like dropping OI or declining funding rates can signal a shift. In fact, we’re already seeing a slight dip in Open Interest, with some traders exiting and the price stabilizing… for now.
Despite this short-term calm, the Open Interest remains dangerously high, keeping the market on a razor’s edge. So yes—the current price may be near mining cost (great!), but the leverage bubble? Not so great.
In short: If you’re going in, do it smart. And maybe keep a helmet nearby.
