Bitcoin is in it again! Its prices have skyrocketed since recovering from an accident just a few months ago. Here’s what’s going on with the price of Bitcoin because its goal is to reach new all-time highs in the near future.
What is the current value of Bitcoin?
At the time of writing, according to CoinMarketCap, the current value of a bitcoin is approximately 55,500 (, 40,700). This shows that the price is close to its recent maximum of $ 57,000 (£ 42,000).
Prices have been fluctuating a lot lately, to the point that if you spend too much time looking at the Bitcoin (BTC) price chart, you can almost guarantee to end the whiplash!
What is the all time high value of Bitcoin?
Bitcoin’s all-time high returned in mid-April when it hit north of $ 63,000 (£ 46,200).
But what goes into crypto must be reduced, and in the following months the price of a market-wide crash bitcoin is close to $ 30,000 (£ 22,000). So after huge profits, it quickly loses about 50% of its value.
It is clear why Bitcoin transactions are not for the faint of heart. Although such crashes are considered ideal practice in the volatile world of cryptocurrency, they only happen once in a generation in the stock market!
Will the price reach the new target?
Even the best crypto experts out there (if anything) and cryptocurrency influencers will probably tell you the same answer. Prices may rise or fall.
Traders can say something like “it could reach a low if it stays above a key level” which translates to “it could rise if prices don’t fall”.
The important thing to note is that when the price of Bitcoin goes up or down, it will not do so in a straight line. The crypto market runs like the stock market after ten cups of coffee. So even if Bitcoin reaches new all-time highs, it won’t do so at a straight ward upward pace.
It has the potential to be corrected and restored, even in small amounts, before it reaches a new peak. Similarly, if prices start to rise, don’t take it as a guarantee that there are new heights on the horizon. It could be a bear trap.
Is there a safe way to invest outside of Bitcoin?
Even as the world’s largest and most well-known cryptocurrency, Bitcoin is still a very risky and speculative asset.
If you’re not right with the idea of losing half the value of your portfolio overnight, the good news is there are other ways to invest! Buying shares can also be exciting and requires a lot of profit. And with stocks, you own a part of a company instead of a part of the code.
Bitcoin profits are also at the mercy of capital gains tax (CGT). This is something you can remove if you use a stock and share ISA to hold your investment. If you’re stuck investing in a sound company, check out The Motley Flower’s share advisory service.
Always remember that you can lose money through most investments, especially cryptocurrencies. So before diving make sure you fully understand what you are putting your money into.
The content of this article is for informational purposes only. It is not a form of investment advice, nor is it structured. Bitcoin and other cryptocurrencies are highly speculative and volatile assets. They carry a number of risks, including the total loss of money invested. Readers are responsible for doing their own due diligence and seeking professional advice before making any investment decisions.
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