Bitcoin spiked 58% in last 1 year. Is this the time to relook at cryptocurrencies as a credible asset class?
Bitcoin on Monday was trading at over $30,700 in the international market. The most popular cryptocurrency saw a spike of 58 percent in the past one year, reinvigorating a hope that was fast eroding among the crypto investors worldwide.
The price is over 98 percent higher than the 52-week low of $15,480, and is within the kissing distance of the 52-week high of $31,809.
Following the lead of bitcoins, other cryptocurrencies have risen significantly in the past few months. For instance, Ethereum traded at $1,674, over 50 percent higher than 52-week low of $1,072.
Ripple traded at $0.53, 72 percent higher than 52-week low of $0.3011. Solana traded at $29.53, over 2.5 times higher than the 52-week low of $8. Binance Coin traded at $221, significantly higher than the 52-week low of $202.9. And the list goes on.
There is no doubt that cryptocurrencies are infamous for extreme volatility. So, what is high today may be low tomorrow, and vice versa.
“Short-term price swings keep happening and getting carried away by upswings and grappling in fear during downturns does more harm than good to long-term investing. Having an education-first approach is an essential cornerstone for sustainable long-term wealth creation," says Rahul Pagidipati, CEO, ZebPay.
Among several positive developments for cryptocurrencies, the key one is building of broader consensus among G20 nations about adopting the broader contours of regulatory framework proposed by Financial Stability Board (FSB) and IMF.
«A false report by a media house suggesting BlackRock’s Spot BTC ETF approval led to an instant spike in BTC purchases soaring prices by $3k in 30 minutes, only to reverse the entire gains in the next half hour as more clarity emerged. However, since
Read more on livemint.com
