After Bitcoin hits another high point in life, an analysis of what lies ahead?

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Any historic rise in the price of bitcoin seems sky-high, but only until a new high beats the previous one. The big daddy of cryptocurrencies hit an all-time high again, this time at $ 66,974 on Wednesday. This happened after the historic launch of the first bitcoin-linked ETF in the United States.

The previous high of $ 64,888 occurred in April. Oddly enough, it fell nearly 50% in July due to Tesla’s shift in stance and the stringent regulations China has imposed on its financial institutions. However, the decline was short-lived and bitcoin prices quickly picked up and rebounded again.

The road ahead

With the easy availability of bitcoins on a number of crypto exchanges such as WazirX, CoinSwitch Kuber, CoinDCX, and Unocoin, investors are increasingly investing in bitcoins as they trade stocks and bonds.

Bitcoin price trends are a clear indication that the major cryptocurrency is hyper volatile and investors should not view any price range as something that is ‘here to say’. After seeing its extreme volatility, even ardent bitcoin followers refrain from only advancing upward in the long run.

Some skeptics, however, continue to warn investors against the move. For example, Bank of England Deputy Governor for Financial Stability Jon Cunliffe warns that bitcoin has no intrinsic value, so the massive collapse of those unsecured assets to zero is a ” plausible scenario “. John Paulson, one of the hedge fund managers who predicted the 2007 subprime crisis believes that cryptocurrencies will be “worthless”.

So even if investors don’t believe bitcoin skeptics, they are advised to invest with caution. The total cryptocurrency allocation should be kept low so as not to dominate your entire portfolio. Theresa Morrison, co-founder of Beckett Collective, was quoted on Time.com as saying that the crypto allocation in the overall portfolio should be low so that “the crypto tail doesn’t wag your investment dog.”

Explore Beyond Bitcoin

One way to limit the effect of bitcoin’s volatility is to think beyond crypto assets, while another alternative is to explore other alternatives among digital currencies.

It is because of the rising price of bitcoin that other lesser-known currencies, such as coins, have garnered huge investor interest, helping these currencies to rise – some of which have risen to as high as $ 1. 200% in just two months, as Mint reported.

Kristin Boggiano, co-founder and president, CrossTower, a digital asset exchange also shares similar sentiments. “As the price of Bitcoin nears all-time highs, even coins are rising due to renewed interest in crypto more broadly,” she says.

Summarizing, we can point out that the price of bitcoin is extremely volatile and that it is advisable to follow the course of the cryptocurrency with caution.

One can keep part of the total portfolio in crypto assets and diversify investments between digital currencies – bitcoin is one of them.

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