Bitcoin has been on a tear lately, with its price skyrocketing in recent months. This surge has made many wonder whether this is just another bubble or a sign that Bitcoin is here to stay. In this post, we’ll explore this topic by diving into some key points from a conversation between Lee Kim Siang and Kelvin See, head of trading at Coinhako. We’ll cover Bitcoin’s recent surge, ETFs, and whether it’s a good time to invest in Bitcoin.
Bitcoin’s recent surge
Bitcoin’s price has been on a rollercoaster ride in recent years. After reaching an all-time high of nearly $70,000 in late 2021, it plunged to around $33,000 in mid-2022. However, it has since rebounded and is trading at around $47,000.
A number of factors may be contributing to Bitcoin’s recent surge. One possibility is that institutional investors are starting to see Bitcoin as a viable asset class. Another possibility is that the ongoing war in Ukraine is driving investors towards safe-haven assets like Bitcoin.
Bitcoin ETFs
Bitcoin exchange-traded funds (ETFs) are a relatively new investment product that allows investors to gain exposure to Bitcoin without buying and storing the cryptocurrency themselves. The first Bitcoin ETF was launched in the United States in October 2021.
Some have seen the launch of Bitcoin ETFs as a sign of Bitcoin’s growing legitimacy. However, it’s important to note that Bitcoin ETFs are still a new product among the unfamiliars, and there is no guarantee that they will be successful in the long run.
Is it a good time to invest in Bitcoin yet again?
This is a question that only you can answer. Bitcoin is a highly volatile asset, and there is no guarantee that its price will continue to rise. Before investing in Bitcoin, it’s essential to do your research and understand the risks involved. Here are some things to consider before investing in Bitcoin:
- Your risk tolerance: As stated, Bitcoin is a very volatile asset. If you are uncomfortable with the possibility of losing money, Bitcoin may not be a good investment for you.
- Your investment goals: What are you hoping to achieve by investing in Bitcoin? Are you looking for a short-term gain or a long-term investment?
- Your investment horizon: How long will you hold onto your Bitcoin investment? Bitcoin is a very volatile asset, so it’s essential to be prepared to hold onto your investment for the long term.
Bitcoin’s recent surge has sparked renewed interest in this controversial cryptocurrency. Whether Bitcoin is a bubble or here to stay remains to be seen. However, by understanding the factors driving Bitcoin’s price and carefully considering your investment goals, you can decide whether or not to invest in Bitcoin.
