Bitcoin is at it again! Its price has been rallying upwards after recovering from a crash just a few months ago. Here’s what’s going on with the Bitcoin price as it aims to reach new all-time highs in the near future.
What is the current Bitcoin price?
According to CoinMarketCap at the time of writing, the current price of one Bitcoin is approximately $55,500 (£40,700). This shows that the price is nearing its most recent highs of over $57,000 (£42,000).
The price has been fluctuating wildly recently, to the point that if you spend too much time looking at a Bitcoin (BTC) price chart, you can almost guarantee to end up with whiplash!
What is the all-time high price for Bitcoin?
Bitcoin’s all-time high was back in the middle of April when it hit just north of $63,000 (£46,200).
But what goes up in crypto must come down, and a market-wide crash in the months that followed left the price of Bitcoin hovering around $30,000 (£22,000). So after huge gains, it quickly lost around 50% of its value.
It’s clear why trading Bitcoin is not for the faint of heart. Although such crashes are considered standard practice in the volatile world of cryptocurrency, they only tend to happen about once a generation in the stock market!
Will the price reach new targets?
Even the best crypto experts out there (if there are such things) and cryptocurrency influencers will probably tell you the same answer. The price could go up or it could go down.
Traders might say something like “it could reach new all-time highs if it stays above a key level” which translates to “if the price doesn’t drop, it could keep going up”.
The important thing to note is that when the price of Bitcoin does go up or down, it won’t do so in a straight line. The crypto market moves like the stock market after ten cups of coffee. So even if Bitcoin does go on to reach new all-time highs, it won’t do so in a straight upwards trajectory.
It’s likely to correct and retrace, even by small amounts, before hitting a new peak. Similarly, if the price starts moving up, don’t take this as a guarantee that new heights are on the horizon. It could be a bear trap.
Are there safer ways to invest outside Bitcoin?
Even as the world’s largest and best-known cryptocurrency, Bitcoin is still a very risky and speculative asset.
If you’re not okay 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 there are plenty of profits to be made. And with stocks, you get to own a piece of a company rather than a piece of code.
Bitcoin gains are also at the mercy of capital gains tax (CGT). This is something you can swerve if you use a stocks and shares ISA to hold your investments. If you’re stuck for sound companies to invest in, check out The Motley Fool’s Share Advisor service.
Always remember that you can lose money with most forms of investment, especially cryptocurrency. So make sure you fully understand what you’re putting your money into before diving in.
The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of investment advice. Bitcoin and other cryptocurrencies are highly speculative and volatile assets. They carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
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