Bitcoin seems to be rebounding after the May price crash. Bitcoin’s price soared by 32 percent this week after a 53% drop between April 16th and July 21. This volatility is worrisome to many investors but it is normal for those who track and invest in cryptocurrency.
Bitcoin’s price reached a new record of $42,607 (Rs 31.6000) Sunday morning, a rise that was nearly double the $42,628 mark on May 19. At 9:30 on Sunday morning, Bitcoin’s price hit $42,607 (Rs 31.6 lakh) for the first time since May 19. This is almost 17 percent more than its previous high of $29,599 on June 21. It has also seen a steady increase in its value from $34,624 on Monday to $34,624 on Monday. The price of Bitcoin climbed to $40,000 the following day. Bitcoin’s price has risen by more than 22 percent in the last week.
Bitcoin has rallied since Tesla CEO Elon Musk stated in an online conference hosted by ARKinvest that Tesla may allow bitcoin to be used as payment when bitcoin mining reaches the milestone of over 50% green energy use. Bitcoin prices rose after Musk’s positive statement.
Although the digital unit looks positive, experts warn that Bitcoin and other cryptocurrencies are volatile instruments. There might be significant volatility in the markets soon. Investors should be cautious before making any investments. Partially, Bitcoin’s recent rebound was due to speculations on social media about Amazon’s plans to allow bitcoin as a method of payment.
When the company posted a job posting for a lead in digital currency and blockchain products on July 22, speculations began. The e-commerce giant refuted all reports. “Notwithstanding our interest, the speculation surrounding our specific plans to use cryptocurrencies is false.” A spokesperson for Amazon stated that they are still focused on exploring the possibilities of what this might look like for Amazon customers who shop on Amazon.
Do you want to invest in Bitcoin right now?
Experts warn that investors shouldn’t be influenced by the price increase last week. Cryptocurrency is highly volatile, so first-time investors need to be cautious. It is crucial that you spend some time learning about bitcoin before investing your money. Start small amounts of money, starting at Rs 100. Experts recommend averaging strategies if you plan to invest large amounts. No one can predict the market, and it is better for you.
Crypto experts advise that retail investors only invest the money they can afford to lose. Avoid gambling when investing in Bitcoins, as the market is volatile. To reduce risk, diversify your investments across multiple cryptocurrency exchanges. You should not invest more than 5% of your portfolio into cryptocurrencies.