According to reports, Bitcoin briefly reached a price of $69,210 on Tuesday morning, as reported by Coin Metrics. However, the price fell in the afternoon but remained around $66,400 at 5 p.m. on Wednesday.
This new record has been highly anticipated, as the cryptocurrency has not traded at a higher level since two years ago when the previous high was around $68,982 on November 10, 2021.
One of the contributing factors to this recent growth in Bitcoin is the launch of Bitcoin ETFs. In January, the Securities and Exchange Commission approved 11 spot Bitcoin Exchange Traded Funds, allowing investors to gain exposure to Bitcoin without actually owning or storing the cryptocurrency themselves.
The rise in the price of Bitcoin has also had a positive impact on other virtual coins, with Ether reaching its highest price since January 2022 on Wednesday.
While the success of Bitcoin may tempt some investors to add it to their portfolio, it is important to approach with caution. Unlike stocks or bonds, the value of cryptocurrency is not derived from an underlying entity, making it highly volatile and subject to fluctuations and drops.
“It is a good day to be a woman,” says Douglas Boneparth, a certified financial planner and president and founding member of Bone Fide Wealth, who invests in Bitcoin and other cryptocurrencies. “There’s no business or actual commodity of any kind backing this other than just supply and demand and what people are willing to pay for it.”
Boneparth also warns that the volatility of cryptocurrency can be “stomach churning” for new investors who are not used to it. He advises those who believe in crypto to hold it for a long period of time, as predicting its behavior in the short term is difficult.
Even for those who can handle the volatility, it is important to be cautious when considering investing in cryptocurrency. The crypto market, and Bitcoin in particular, has suffered major losses over the past two years, with Bitcoin losing over 60% of its value in 2022 and the entire crypto market losing over $2 trillion in the same year.
As with any financial asset, it is important to remember that past performance does not guarantee future success. Due to the unpredictable nature of cryptocurrency, it is recommended to only invest as much as you can afford to lose.
In conclusion, while the recent success of Bitcoin may be tempting, it is important to approach with caution and only invest what you can afford to lose. For those interested in learning more, CNBC has launched an online course called “Ace Your Job Interview” to help with career success. Plus, sign up for CNBC Make It’s blog to learn about achieving success in the workplace, finances, and life. Use the discount code 25OFF to save 25% on all orders.
