Bitcoin's Wild Ride to $100K - Possible?
Bitcoin has hit over $60,000 again, and I am practically at my wit's end to consider it at $100,000 before this year is out. The crypto market has been a real rollercoaster over the past periods, but things are finally looking up again. In the wake of a big drop earlier this week, Bitcoin and other cryptocurrencies rebounded very strongly.
I have noticed that Bitcoin usually does most of what the stock market does. When stocks do well, crypto generally follows. That's exactly what we saw: the S&P 500 had its best day in over a year, and Bitcoin shot up over 7% in just 24 hours. Now, this quick rise caused about $100 million in short positions to get liquidated, meaning lots of people betting against Bitcoin lost money.
Some experts believe this rally is not over yet. Michael Terpin of Transform Ventures says Bitcoin will never again see the $50,000 level. He notes that the October and November months are typically very kind to Bitcoin, especially during years such as this one when a "halving" event takes place.
The US election could be the other major driver. Terpin believes that should Trump win, a new influx of buyers could see Bitcoin break above $100,000. Of course, that's just one man's opinion, the crypto market is famously unpredictable.
Not just Bitcoin, though: Ethereum, Toncoin, Solana, and Cardano also see major gains. The only token dipping was XRP, but that had to do with the 17% gain it saw the previous day.
I find it really interesting how much the crypto market can swing within such a short period of time. Just some days ago, everything was pretty grim. Now, there seems to be renewed optimism that new all-time highs can still be reached.
While I get as excited as the next person about the potential, I always try to remind myself that there are indeed risks associated with crypto investing. The markets are very volatile, and just because something did well last month doesn't mean it will this month.
Never invest more than you can afford to lose, and always do your research.
Posted Using InLeo Alpha