Bitcoin Rallies at Summer’s End Topping $50K
It’s been a tough summer for Bitcoin. Throughout the season, the price for the first and most widely used cryptocurrency withered at the vine dropping below $40,000 and at one point even below $30,000. However, rounding the corner from August to September, the digital asset has bounced back topping out on the third of the month at just over $50,000. Although the asset corrected downward shortly after, the price has been holding fairly steady in the $49,000 range.
It’s Been Higher
Breaking the $50,000 mark is good news for BTC, as it marks the fourth time over the past four months it has reached that pinnacle. However, the coin has been much higher. In February and April Bitcoin exceeded $60,000, reaching $64,863.10 at its highest point. However, it took a hard tumble on April 18 dropping as much as 14 percent in that single day and reversing most of its gains from the previous week.
That ongoing volatility of decentralized currencies have continued to make investors skittish. Recently, on “Bloomberg Wealth with David Rubenstein,” billionaire investor John Paulsen warned against a bubble.
“Cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless,” said Paulsen, not holding back on his distrust of cryptocurrencies even if they may be doing well in the short term.
Paulsen said he wouldn’t recommend cryptocurrencies as an investment to anyone and that due to its volatility, he expects to see the crypto market at some point suffer a massive collapse. “There’s unlimited downside,” he said. “Even though I could be right over the long term, in the short term I’d be wiped out.”
Altcoins Also on the Rise
BTC’s rally isn’t a one-off. Two other popular cryptocurrencies, Ethereum and Cardano, have also made strides recently even if their prices can’t compare. Ethereum hit $3,981.53 per Ether the morning of September 3, and the Cardano platform’s cryptocurrency, Ada, pushed past $3 just a day earlier. And while the price for Ada may seem low, it should be noted it has risen more than 1600% this year alone.