The price of Bitcoin reached a record high of $64,888 in April 2021. The price had increased by 450% in a matter of six months. Bitcoin is highly volatile and losing $10,000 of value in a day is not unusual for this crypto coin.
Bitcoin’s price has a historical pattern of reaching massive highs and falling to lows in a short period of time. In 2017, the price of Bitcoin increased from $1,000 at the start of the year to $20,089 in December of the same year. This massive spike in price made governments, traders, and investors notice the potential of Bitcoin.
In 2020, when the world was under lockdown due to the pandemic, Bitcoin rallied to reach almost $65,000. Investors were concerned about the state of the global economy, and many diverted their funds to the cryptocurrency markets. However, as quickly as the price reached the record high, it pulled back, and by July 2021, Bitcoin was trading just below $40,000.
What is the Bitcoin price outlook?
Bitcoin’s volatility is affected by various factors, from regulations through social media to political entities. On 6 September, Bitcoin’s price reached $52,912; it was the first time since May that the price surpassed $50,000 again.
However, this is how Bitcoin’s price behaves; it makes these extreme highs and lows. Investors who are holding long-term have to adjust to this type of volatility. Many expert analysts predict that Bitcoin will reach $60,000 again in 2021. They forecast the price will break the $60,000 level and reach $200,000 by the end of 2022.
The main reasons for this are the influx of cash by institutional investors and the recent approval of Bitcoin as legal tender in El Salvador. Experts believe other countries will follow El Salvador. Furthermore, the continued interest across social media by prominent figures like Elon Musk boosts Bitcoin’s price further.
Take advantage of the price swings
Traders can take advantage of Bitcoin’s price swings by signing up with a reputable cryptocurrency broker. Coinrise offers the exchange and trading of cryptocurrencies. The broker allows access to the crypto markets via their WebTrader, MetaTrader 4, or MetaTrader 5 trading platforms.
The WebTrader is equipped with advanced tools and indicators needed for active trading. MetaTrader 4 and 5 are well-known trading platforms and come with fast execution speeds, auto trading compatibility, and built-in indicators.
Coinrise offers its traders a strategy plan and professional guidance to set up financial goals for their investment portfolios. The broker also offers various account types, which have multiple benefits like raw spreads, low minimum deposits, trading alerts, VIP mentorship programs, and many more.
Bitcoin’s price has been on a wild ride since its inception, as the world’s leading digital currency. Volatility is synonymous with the cryptocurrency market, and as investors and traders, we need to keep this in mind. Coinrise offers many features to safeguard traders from unforeseen market risks. They also provide expert guidance on investment strategies which is helpful to novice investors.