Bitcoin on a Steep Growing Curve – Investing at All-Time High(s) or Not?

In Q4 2022, when Bitcoin touched the bottom at $15,000, regular Bitcoin users and analysts were in unison in their fear for this cryptocurrency.

Ever since that bullish period, it has been on a steady rise, only to hit the bull’s eye (literally) at the end of February 2024.

Having surpassed $71,000 at the time of writing (March 11, 2024), this steep growing curve has raised two valid questions: what to do with crypto now, and is this the all-time high(s)?

Probably the most predominant trend of Bitcoin utilization in the last few years has been its commercialization. What used to be a vehicle for rare fintech enthusiasts has become a widely used payment method. Now you can use it directly on many mainstream websites to pay for their services or indirectly, through payment providers they accept – think Amazon, Microsoft, AT&T, and the like.

Some entertainment platforms have also embraced Bitcoin and other cryptocurrencies, increasing their target customer pool. From Twitch and (i)gaming websites, online users use them to credit their accounts on the best Bitcoin poker websites and to support their favorite streamers alike.

Apart from its payment applications, Bitcoin remains a popular choice for investments. Of course, it was easier for John and Jane Doe to buy Bitcoin in February 2011, when it was worth $1 than today when it has skyrocketed. But even though you might not have spare $70,000 to buy it today, there are different ways to indirectly invest in Bitcoin.

Consider buying the stocks of companies that have invested in cryptocurrencies and trade exchanges. If you become a shareholder at a fraction of Bitcoin price, but those shares depend on crypto – among other parameters – you can say you’ve diversified your portfolio. For instance, Tesla Company has literally invested fiat money in cryptocurrencies. In other words: if you own Tesla stocks, you’ve also invested in crypto.

What’s more, you don’t have to buy an entire coin. There are various options to invest as little as $50 in the crypto market, from Bitcoin futures to other fractional options, and see what happens.

A rule of thumb is that you shouldn’t invest more than 10% of your portfolio in a single thing. For instance, if you can allocate a minimum of $500 a month to your investments, putting $50 a month into Bitcoin is a reasonable thing to do.

But what if its prime is now and the future brings a fall?

The bear and bull periods of the crypto market can’t be predicted based on past events. In October 2021, Bitcoin surpassed $61,000, only to drop to barely $17,000 in November 2022. So, if you invested in this crypto in July 2021, when it was $31,000, and sold your stakes in October 2021, you’ve doubled the investment. But if you’ve been waiting for all this time, it’s better to sell it now than that very October.

And then again, perhaps it will reach a completely new all-time high this summer and hit, say $80,000, so you’ll feel bad if you don’t keep it till then.

Conversely, the market could panic, and Bitcoin could plummet to, for instance, $30,000 by the end of the year. And all the big- and small-time investors who haven’t sold before the potential fall would be biting their nails in despair.

What we’re witnessing at the moment is unprecedented in the world of cryptocurrencies. The Bitcoin value can go anywhere. Due to its decentralized nature, and based on the previous movements, one thing is highly probable: it won’t stay calm for too long. While we don’t know whether this will keep hitting new all-time highs, we can rest assured that we have a dynamic period before us.