Last week, Bitcoin’s price climbed again beyond $40,000, continuing a trend of ups and downs, as well as a pattern in which Bitcoin has been unable to reach much higher than $45,000 in recent months.
Following President Joe Biden’s March 9 signing of a broad executive order on cryptocurrency, Bitcoin swiftly dipped below $40,000 before recovering again this week. The presidential order instructs government agencies to deliberate on cryptocurrency regulation, as well as the Treasury Department to continue studying the launch of a government-backed digital currency. It is the White House’s first tangible step toward regulating cryptocurrency, which has emerged as a crucial component in the battle in Ukraine, causing additional volatility in the crypto and stock markets.
Since March 2, Bitcoin hasn’t gone above $45,000. Experts argue that the crypto market has been more mirroring the stock market in recent months, which, combined with increased widespread adoption and the plummeting prices we’ve witnessed to start the year, makes it even more interwoven with growing conditions in Eastern Europe. In a same vein, Ethereum has followed a similar path.
Despite the ups and downs, Bitcoin has remained above its low point of below $34,000 in January, which was the lowest it has been in the preceding six months. Bitcoin’s price has dropped by 40% since hitting an all-time high of $68,000 on Nov. 10, owing to rising inflation, a sluggish employment market, and the Fed’s continued signs that it will begin winding down aggressive measures to boost the economy.
So far this week, Bitcoin’s price has fluctuated between $37,000 and $41,000. Here’s how Bitcoin’s current price stacks up against its daily highs during the last few months:
Despite a sluggish start to the year, Bitcoin began 2022 on a high note, with a robust November and early December period that gave way to the recent downward trend. After beginning the year in the $30,000 level, Bitcoin rose steadily throughout the year, reaching an all-time high of $68,000 on November 10th.
Though its recent drop from its all-time high, many experts believe Bitcoin’s price will eventually surge above $100,000, describing it as a matter of when not if. Shortly after Bitcoin’s most recent all-time high in November, Ethereum’s price surpassed $4,850, setting a new all-time high for the cryptocurrency. Following the recent high, Ethereum has experienced similar volatility.
Bitcoin surpassed $60,000 for the first time in 2021 in April, and the price movement since then has highlighted the cryptocurrency’s volatility at a time when an increasing number of individuals are keen in getting in on the action. Bitcoin swung rapidly up and down between a low point in July that dropped it below $30,000 and its most recent high point in November. The future of cryptocurrencies will almost certainly entail a lot more volatility, according to experts.
For this reason, we’ve spoken with investing gurus and financial consultants who advise against putting a large portion of your portfolio into the asset class. They work with clients to ensure that volatile crypto investments don’t get in the way of other financial goals, including putting money aside for an emergency fund or paying off high-interest debt.
For more information on cryptocurrency market news, check out Cryptos Valuator.