Feb 25, 2017 07:25 AM EST
The price of Bitcoin recently hit an all time high, which is reason enough for people to invest in this digital currency now. Bitcoin is now trading at $1,186. The last time it was in an all-time high was during the height of the Bitcoin-mania in November 2013,and it was only at $1,165.
Investing on Digital Currency is a Good Idea Now
After the all-time high in November 2013, the price of bitcoin has constantly fluctuated for four consecutive years after one of the bitcoin exchanges closed down, Tech Crunch reported. The price stabilized two years ago at $250, which made some people think it would never go up to $1,000 again. However, just a year ago, the prices started to stabilize and rise steadily.
Bitcoin Fast Rise Fast Facts
One of the major reasons for this steady increase is the fact that Bitcoin is now tied to the stock market, which has been significantly rising since Donald Trump become president. Traditional investors usually invest in alternative assets like gold or bitcoin when the market isn't doing so well. This means, bitcoin is starting to turn into a traditional asset and less as an alternative asset, which could mean that its price will follow the stock market closely.
Another possible cause is the appointment of Mike Mulvaney, who is a big bitcoin advocate, as the director of the Office of Management and Budget. Also, the bitcoin community and the Wall Street are anticipating SEC's approval of Winkevoss Bitcoin ETF, which would be the first ever Bitcoin ETF in the US, CNBC reported. This will make it easier for ordinary investors to put their money on this digital currency.
With these facts, more traders are now putting much of their money on bitcoin as early as now. This is why bitcoin prices are at an all-time high. Despite its being volatile, it is still susceptible to significant drops and raise, so investors should still be wise on their decisions.
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