BTC value reached its peak of approximately $20,000 at the end of last year. After a few months, this value dipped to $6,400.
Bitcoin (BTC) Price Today – BTC / USD
While it is true that BTC value is worth less than it used to be, it is still a profitable venture. Bitcoin value hit highs and low at the end of 2013 when it started gaining ground. The digital currency hovered around a thousand dollars during this period. BTC purchased at this rate is presently worth $6,400, and the gain would be more than $5,000.
The estimate doesn’t include transaction costs and additional fees.
Bitcoin bought at $20,000, $15,000, or at $10,000 during the highs would yield up to $13,600, $8,600 and $3,600, respectively.
The problem of volatility
Volatility is quite common for digital currencies. Ethereum rose to $1,300 and dipped to $200. Other cryptocurrencies such as Litecoin and XRP have seen such declines.
This is why investors are cautious with crypto.
Mark Cuban, a billionaire entrepreneur and Warren Buffet have warned about the volatility of bitcoin. Jack Bogle has also warned potential investors to stay away from bitcoin.
“Bitcoin has no underlying rate of return, you know bonds have an interest coupon, stocks have earnings and dividends, [and] gold has nothing. There is nothing to support bitcoin, except the hope that you will sell it to someone for more than you paid for it.”
Also, in recent times, Nouriel Roubini, a global economist at a Capitol Hill hearing said: “Crypto is the mother or father of all scams and bubbles.” Roubini spoke about the swindlers that tapped into the fear of investors and took them for a ride offering crappy assets that crashed.
Tony Robbins, author of a bestselling book and self-made millionaire, advises that if you have a plan to invest in cryptocurrencies in the future, think of it as a special trip to Vegas. He directs a certain sum of money to risky ventures, and he does not rely on them to succeed. For such investments, Robbins said that he knows it is just for fun and he could lose all he put in.
Bitcoin price analysis
At the time of this writing, Bitcoin is being traded at $6,544. It is still on a sideways movement in a narrow range. Market participants are being exhausted with small swings. Volatility is quite low at the moment, and it may remain minimal for the remainder of the month.
However, volumes are starting to be collected, and this allows experts to consider the situation from a wider perspective. It is important to remember that the recent price peaks owe their success to Tether. After stablecoin collapsed, we experienced a redistribution of assets. Presently, investors are gaining more ground.
At this rate, growth may occur, but it will start from a lower and more promising level. In the future, it is worth expecting a decline, and it will not last for more than two days.
We expect price fluctuations in a narrow range as it has been all week. There could be a decline to $6,500 – $6,450.