Is Bitcoin Price Back on the Up?
There was fresh hope for the cryptocurrency market today as the [Bitcoin](/crypto coin news/bitcoin news) price registered the first positive action in three days.
The cryptocurrency market has been taking a hit recently with prices tumbling since many all time highs were reached in early November 2021. However, the last 7 days have seen prices stabilise in what many experts believe is the bottom of the recent price dip.
Bitcoin price movement
At time of press, Bitcoin is currently trading at $42,029 with a 24 hour high of $42,663. Could this be the reversal that many people are hoping for? Bitcoin fell below $40,000 for the first time in 3 months yesterday (January 10th) when the price touched $39,816 across exchanges. The price bounced sharply showing strong buying support around and under $40,000. However, with global macro economic uncertainty Bitcoin is still considered by many as a speculative investment and high risk assets are often first to be sold in times of uncertainty.
Wise decisions needed
The question cryptocurrency investors need to ask themselves at this point is what is considered high or medium risk? The future of cryptocurrency has never been so bright as many of the well established networks begin to come online and offer tangible cost and efficiency benefits to their loyal customers. However in a market saturated with meme coins, ponzi projects and rug pulls the savvy investor must choose wisely.
Hedge against financial catastrophe
Legendary investor, Bill Miller, recently announced he has allocated 50% of his net worth into Bitcoin as an “insurance policy against financial catastrophe”. Does he know something the rest of us don’t? With over 40 years in the investment business it would be naïve to think Mt Miller is taking a speculative gamble on Bitcoin especially since he purchased his first Bitcoin in 2014. Mr Miller went on to say “the average investors should ask themselves what do they have in their portfolio which has Bitcoins track record – 1, is very, very under penetrated, 2, can provide as a hedge against financial catastrophe, 3, can increase in value 10 – 50x – the answer is nothing”.
Market shake down
Clearly Mr Miller is very bullish on the future of Bitcoin which is a great help to counteract the negative feeling currently surrounding Bitcoin and the rest of the cryptocurrency market. Distributed networks and blockchain technology have the power to radically change the way we do business and make for a fairer and more balanced global community.
However, there may be many more rough seas to cross before we reach the calm economic waters we all crave. I think the key is to invest wisely and stick to medium to large cap crypto with a working product, strong customer base and a clear road map for the future. The entire cryptocurrency market is long overdue a radical shake out which will leave behind only the strongest contenders. Choose wisely and make sure you are on the right side of history.
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.