Bitcoin has surpassed its previous all-time high of $64,888, reaching $66,283 for crypto investors, it’s just more volatility to tune out and also hope for better days ahead.
This current spike coincides with the debut this week on the New York Stock Exchange of the much-anticipated first Bitcoin ETF. The achievement is remarkable given that the currency was hovering around $11,500 per coin just a year ago.
Bitcoin remains a highly volatile and speculative investment, despite its recent record high. In fact, after reaching a new high in mid-April, the cryptocurrency quickly lost over half of its value, plummeting to below $30,000 by mid-July.
This surge does not ensure a long-term reversal, given the cryptocurrency’s history of volatility. The price of bitcoin is just as likely to fall as it is to rise again.
The price oscillations are likely to persist, according to analysts, and long-term crypto investors will have to live with them.
What every investor needs to know
If you’re considering investing in cryptocurrencies, be prepared for more volatility. As a result, experts advise limiting your crypto investments to less than 5% of your whole portfolio.
Don’t let a rapid price spike change your long-term investing strategy, just as you shouldn’t let a price reduction affect your choice to buy crypto. Even more critical, don’t go out and buy additional cryptocurrency just because the price is going up.
Before investing any further funds in a speculative asset like Bitcoin, be sure you have all of your financial bases covered, from retirement accounts to emergency savings.
The best thing you can do is not look at cryptocurrency, regardless of whether it is going up or down. Like any other long-term investing account, you can set it and forget it.