Bitcoin breaks through $11,000, less than 24 hours after $10,000 record!

Published on

New day-new record! It has been a historic week for the Bitcoin market. Cryptocurrency surpassed $11,000 just after the monumental $10,000 milestone. But just over an hour later, bitcoin was back below $11,000 and the current price at the moment of writing is $10.621. Bitcoin has risen in value so far this year, the largest gain of all asset classes, prompting skeptics to think it could be a classic speculative bubble. Much of Bitcoin incredible gains came just about 12 hours later the previous record that many analysts see as “too quickly”.

Many market watchers remain highly critical of Bitcoin. Jon Cunliffe, the Bank of England deputy governor, said earlier this week that people have to understand that Bitcoin is not a currency in the accepted sense. There’s no central bank that stands behind it, and we are experiencing all-time price high traffic, investors need to do their homework.

Here come a few questions. Could the rising demand be the demise of bitcoin? Should investors use Bitcoin as an alternative asset or its the perfect time to convert bitcoins to precious metals and rebalance your portfolio after this massive run?

Whether it is indeed a bubble or something else entirely remains to be seen, it would be a great time for gold comes into play. Sometimes it’s better to play it safe and win not just one battle. Gold has an indisputable history of stability over the decades, and its prices will only increase over time. On top of this, the gold market is regulated, which gives investors some protections that don’t exist with Bitcoin. Gold has also proven itself to be of value even when governments attempt to restrict its usage or outlaw it completely.

Don’t let the winds of the market take you off course. Diversified long-term investments will persevere, and we might remember all the “lessons” we learned from the previous financial crises.

This article is provided as a third party analysis and does not constitute any financial advice, which can only be provided by a certified financial adviser.

Leave a Comment