Bitcoin Price Rollercoaster Continues As It Plunges After Debt-Ceiling Agreement Surge Earlier in Week
Key takeaways
- Bitcoin is sliding down to a potential monthly loss after surging ahead as a debt-ceiling deal was agreed
- Congress vote today on the deal, DeSantis endorsement and jitters across the stock market could all be to blame
- There’s no way to time the market with crypto — diversified approach will serve traders well
Crypto is back in the headlines again as Bitcoin is tumbling down in real time after pushing past the $28,000 mark. There could be a number of reasons for the retreat, but right now it’s looking like Bitcoin could make its first monthly loss this year. Here’s the lowdown.
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What’s happened with Bitcoin prices this week?
At the start of the week Bitcoin broke the $28,000 barrier to hit $28,325 at one point. The rally was driven by President Biden and Speaker McCarthy reaching a tentative deal about the debt-ceiling crisis, which drove other cryptos to fresh highs as well.
But it wasn’t to last: Bitcoin is now facing its first monthly loss since December last year. On Tuesday the price retreated to close at around $27,800 and today, we’re seeing Bitcoin prices floundering at $27,000, another 2.34% slide.
Why was it all over before it began? It could be for a number of reasons: the debt-ceiling deal isn’t actually sorted until it’s crossed two different rounds of voting; controversial presidential candidate Ron DeSantis spoke out in favor of Bitcoin and general jitters in the stock market influencing crypto traders. There’s no single cause, but the volatile crypto market strikes again.
How to invest in crypto
Investing in crypto is like playing whack-a-mole: you might try and guess where the next one is popping up, but you can never really know for sure which one you need to hit next. The market is completely unpredictable and chasing the latest crypto trend is a sure-fire way to lose money.
Instead, a diversified approach is the best one. Crypto ETFs and trusts are a way of accessing a basket of different cryptocurrencies to reduce overexposure across the board. You should also conduct extensive research to make sure you’re investing in the cryptocurrencies that suit your investment strategy and risk appetite. Or better yet, let AI take on the research for you (just like it does for our Crypto Kit).
The bottom line
Bitcoin has been all over the place this year thanks to the kind of insane amount of financial news that’s rocked everyone’s boats in 2023. But it’s been on a positive trajectory in the last few months, and we’d expect the dip to be medium-term at most. Nonetheless, it’s a lesson in not putting all of your eggs in the Bitcoin basket if you’re looking to invest in the crypto market.
The tech market has been defying the odds and bringing great returns against a difficult economic backdrop. Get in on the action with Q.ai’s Emerging Tech Kit, which uses AI to invest in a diversified basket of tech stocks and ETFs. The AI sifts through the data and then dynamically weights the holdings as required to help you stay one step ahead.
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