we all worry about how much our money will drop when bitcoin also drops. if you bought $100 worth of bitcoin today and bitcoin drops to $40,000 or less, your money could drop to $60-$50 but think of how much difference it would be if you put in $100 at $40,000 price of bitcoin should it ever reach that point.
you wouldn’t need bitcoin to reach past $100,000 mark for you to double your money. your $100 can be $200 even before bitcoin reaches $100,000 and if the past two years have been anything but an example we know that bitcoin is capable of reaching beyond that $100k mark
so instead of worrying, plan how much you will be buying if bitcoin continues to drop
No one knows for sure where the Bitcoin price will go, and we can't be certain whether Bitcoin will drop to $40,000 as the OP claims.
Therefore, it is important to practice DCA to avoid the worry of significant losses, if the price does drop to that point. DCA can help anyone recover profits, especially if you do it with a large allocation when the Bitcoin price drops. In fact, if you bought $1,000 worth of Bitcoin when the price was $80,000, then when the price was $40,000, you would have about $500, and you would only need to DCA with a larger allocation, as I mentioned. Furthermore, if you bought $2,000 worth of Bitcoin when the price dropped to $40,000, then you would profit when Bitcoin returned to $80,000. In essence, you would have made a net profit of around $2,000.
Well, you might be thinking, "Why buy Bitcoin at the current price?", right? So, I will answer, as I said before, "we can't predict Bitcoin price movements". It is possible that when we buy Bitcoin at around $70,000-$80,000, the price could return to above $100,000 a few months later. So, I hope you understand what I mean. By the way, I don't believe Bitcoin will drop to $40,000, because Bitcoin is already very valuable to everyone, including companies, institutions or countries through existing, or future adoptions. This means, there will always be strong demand for Bitcoin if the price drops further, and that will prevent the price from dropping further, or even increase even further.