On January 20th, 2025, the price of Bitcoin briefly soared to $109,000 before “plummeting” 2 per cent, back to $103,558.38. This volatility at least has an understandable origin. Inauguration Day in the United States.
Many crypto enthusiasts see President Trump as a friend of decentralized currency. The price of Bitcoin had been wobbling steadily upward for much of the previous week in anticipation of Trump’s move to the white house.
It’s not uncommon for newly elected leaders to move the needle in the world of finance as analysts and investors anticipate what results their terms will bring.
How high can Bitcoin go and when will it stop?
Context: Why Crypto Investors Like Trump
During the election campaign, Trump promised that he would fire Gary Gensler—Biden’s chair of the US financial regulator of the Securities and Exchange Commission. Incidentally, that is a promise that he kept. Gensler technically resigned, but the writing was on the wall.
Gensler was infamous in Crypto circles for his hard-nosed regulatory stance on decentralized currency. He had stated on multiple occasions that he believed Bitcoin and other cryptocurrencies were “for hucksters,” and leveraged numerous enforcement actions against investment firms.
Many people believe that the Trump administration will bring Crypto into the financial mainstream.
Trump and his wife have even launched their own tokens recently. Both the TRUMP and MELANIA tokens soared as they entered the market, but have since cooled considerably, dipping more than 20% the day following the inauguration.
Is Now The Time to Jump In?
One of the worst mistakes you can make in investing is to watch something take off and then hastily scramble toward it to get in on the fun. By the time you become aware of an investment opportunity, its value might be arching downward.
That happened during the famous Gamestop Stock phenomenon that took place during the pandemic. While many early investors did make money—some of them quite a bit of money—those who jumped in after hearing about it on the news often experienced considerable losses.
The golden standard for investing: By low, sell high.
Right now, of course, crypto is high. Does that mean curious investors should keep it at arm’s length? Not necessarily. Bitcoin can make a lot of sense as an investment, provided you meet certain criteria.
- Successful Bitcoin investors need a high tolerance for volatility. The price can swing dramatically up or down in a matter of days or even hours. You need to stay calm and avoid panic selling during major price drops.
- Understanding technical concepts is crucial for Bitcoin investment. You should be willing to learn about blockchain technology, private keys, and secure storage methods. This knowledge helps you manage your investment safely and avoid common security pitfalls.
- A long-term perspective is essential for Bitcoin investing. The most successful Bitcoin investors tend to be those who can hold through multiple market cycles rather than trying to trade for quick profits. This approach requires patience and conviction in Bitcoin’s long-term potential.
Many people have done very well with Bitcoin. The very fact that it is worth significantly more today than when it originated in 2009 (originally traded at $0.00099) is a testament to how much this asset can grow in value.
That said, it’s all about how you manage your investment. Are you ok with owning something that might dip 10-20% overnight? If not, Bitcoin may not be right for you.
Will Bitcoin Stop Going Up?
While we should put out the disclaimer that no one can say precisely what any investment will do there is no reason to believe that Bitcoin will stop going up. In fact, the opposite. It’s important to remember that there is a finite amount of Bitcoin in the world (just under 20 million units). This limit helps protect the price.
Bitcoin is also becoming an increasingly regular component of everyday life. Now, if you are interested in finding a Bitcoin or Ethereum casino you have options, such as Evo. You can read more here.
Of course, to say “Bitcoin will never stop going up!” Is only a complete statement if you add…” And down.”
J.P Morgan, when hounded by a reporter about what the stock market would do had this famous reply. “I believe the market will fluctuate.”
That’s advice you can take to the bank. In fairness, it’s not completely clear if Morgan said it, or if Rockefeller said it, or if anyone said it. That’s not really the point.
Bitcoin swings low and soars up. On average, its value increases. The majority of successful investors aren’t looking for quick gains when they put money into any market. Some investments develop over the course of decades.
With a seemingly crypto-friendly United States Government, now could certainly be a good time to get in on Bitcoin. Just be sure to keep a calm head.
DISCLAIMER: The above article is for information purposes only. Investment of any kind carries risks. Be careful with your decisions.
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