Recent rise and fall of Bitcoin
Recent rise and fall of Bitcoin: Being the first in the rank of cryptocurrencies has hit an all-time high just a few days back. This event caused a lot of turmoil in the market for investors. However, we have always known that BTC and other cryptocurrencies are highly volatile and susceptible to change.
According to coin drop after going as low as $29,000 earlier this year, Bitcoin broke its previous record when it hit $66,974 On Wednesday, 20th October. This latest surge was in line with the first U.S Bitcoin ETF debuting on the New York Stock Exchange that same week.
The pro shares launch contributed to a new high price point of Bitcoin. Leah Wald, the CEO of Valkyrie investments, said…” the launch of a Bitcoin ETF in the U.S have sent prices soaring high. This newly set record is an amazing one considering that just a year ago, the price of bitcoin was around $11,500.
Despite the new record, Bitcoin is still a highly volatile and speculative investment and ranks first in the list of cryptocurrencies.
However, prices have recovered, and bitcoin’s market value is back to normal, making it the most highly valued crypto, according to CoinMarketCap.com. The world’s No. 2 crypto by market value, Ether ETH on the Ethereum blockchain.
Questions being asked now are that what should crypto investors do in light of this latest increase? According to expert’s “Nothing.” Given the crypto’s long-time record of volatility and flexibility. Bitcoin’s price is just as likely to fall back down as it will continue increasing. The high lows of the prices are somewhat constant and consistent with the business experts have advised that crypto investors will still have to deal with the volatility.
However, there are many ways to manage and master the art in this price and value change in crypto. Below are some listed perspectives from certified experts.
What Investors Should Know
- Investing in cryptocurrency is still risky. One has to be financially capable to withstand its horrors. If you’re investing in cryptocurrency, expect volatility to continue. Some analysts say you keep your crypto investments to less than 5% of your total assets to avoid serious financial damage.
Crypto investment is more profitable to the long-term investors’ testimonies from the personal finance expert behind Humphrey talks said. “I know these things are super volatile, like some days they can go down 80%, But if you believe in the long-term potential of bitcoin. That’s the best thing you can do.”
Don’t let a sudden price increase alter your long-term investment strategy. Even more importantly, don’t start buying more crypto just because the price is rising. Always make sure your financial bases are protected before putting any extra cash into cryptocurrency.
- A financial expert, Ivory Johnson, founder of Delancey Wealth Management, in an interview with CBNC, says, “It’s still a good time to buy,” which is due to the recent interest of investment firms in the new futures-based Bitcoin ETF. He says, “bitcoin is being increasingly adopted, and as more people adopt Bitcoin, the price will increase in folds.
Johnson also says that “it’s a good environment for digital assets” right now because bitcoin supporters see it as a store of value and an edge over inflation. He claims that has price soars high, BTC becomes more valuable, making now a good time to buy in despite the high price.
However, remember that it’s always risky to invest in cryptocurrency due to its volatile and speculative nature, Jariwala says. There’s a possibility you could lose your entire investment.
Anjali Jariwala, certified public accountant and founder of Fit Advisors, shares her insight as regards the price surge she says “Usually when an investment hits an all-time high, that is the least ideal time to buy. She claimed that “it makes sense to wait and see what happens versus buying at an all-time high,” -(CNBC)
Her statement was under bitcoin’s high volatility and responsive nature to high prices.
But if you’re still interested in investing, Jariwala recommends a buying and storing strategy. This saves a lot of investors from losing their funds. It is, however, a long-term plan that requires patience. Rather than attempting to trade in the short-term, this strategy promotes holding an asset long-term.
In conclusion, investors need to be careful about how they invest and the method by which they do. Is it safe to adhere to Jariwala? You have to know what works and benefits you. Or go with ivory Johnson’s perspective? Still your choice. Just have in mind that the cryptocurrency world is very volatile.