Bitcoin has rebounded and reached all-time highs to exceed $ 24,000 after starting the week at under $ 19,000.
The Bitcoin price climbed to $ 24,220 on the Luxembourg-based Bitstamp Bitcoin and cryptocurrency exchange, increasing by a staggering 30% this week alone.
However, amid this week’s massive bitcoin and cryptocurrency rally, Coinbase CEO Brian Armstrong warned of the “risk” of bitcoin and cryptocurrency investments.
There are risky situations
“While it’s great to see the rallies in the market and to see news organizations turn their attention to this rising asset class in a new way, we need to stress enough how important it is to understand that investing in crypto is not risk-free,” Armstrong said in a blog post.
Other tech companies like Coinbase, AirBnB, and DoorDash seem to have jumped on the public offering main wagon at a time when they debuted with very high values. Coinbase, which made money on fees linked to customer transactions, was valued at $ 8 billion when it last raised funds in 2018.
“Crypto can be a variable asset class. There is more to it than the traditional types of financial instruments that most investors are used to. For example, this means the market can move much faster in both directions than the stock markets, ”he says.
After starting the year around $ 7,000, the Bitcoin price fell below $ 4,000 in March as the coronavirus outbreak caused the markets to melt. It quickly rose to about $ 10,000 and began to climb to an all-time high of 2017 in October.
In recent months, Bitcoin price growth has accelerated in recent months as a growing number of high-profile investors have called bitcoin a potential inflation protection and some of Wall Streets’ largest banks changed their setting for the digital token asset class.
“Like all asset classes, crypto markets will rise and fall over time,” Armstrong wrote, pointing to the 2017 bubble, which showed that the price of bitcoin rose from under $ 1,000 at the beginning of the year to about $ 20,000 in 2018 and fell to $ 3,000 in 2018.
Despite these warnings, the Bitcoin and crypto community celebrates the return of the Bitcoin price to an all-time high, and many long-term cryptocurrency investors feel they are right after spending three years in the waiting phase.