One year ago, January 14th, 2024, Bitcoin was selling for around $42,000 (congratulations if you bought in at this price or even lower). Today, BTC sits at over $96.5k, which is more than double from one year ago. Most people reading this right now who have not followed Bitcoin think that this price is amazing, and while it is, there has still been a hectic journey to discuss. Let’s start with its meteoric rise.
Early 2024
Bitcoin seemed to be on a steady, but uneventful pace in early 2024. 2023 saw a high of around $45k, late in December. However, Bitcoin had previously beat that feat, back in November of 2021, when Bitcoin sat at around $67k. But after steady decline in 2022, the crypto move steadily upward in 2023 and early 2024.
In March, things started changing for good. On March 5th, Bitcoin hit a then-all-time high of $71,500, never to dip back into the $40s again (so far).
Mid 2024
The huge spike in Bitcoin price led many to finally invest, but, as many would learn, investing into something when it’s at an all-time high, can be mentally exhausting.
After reaching nearly $75k in early March, Bitcoin wouldn’t eclipse those prices again until the end of 2024. Many found themselves in a difficult situation, as they were investing into a still relatively new investment, and seeing their money disappear. In early September, Bitcoin dropped down to below $54k, meaning those who bought in at the high saw a loss of nearly 30%. Those who had a better understanding of the cryptocurrency knew to either stay away or invest and hold (or sell when profits spike). Those who didn’t either sold at a massive loss, or cost themselves a few months of anguish.
Late 2024
Quickly after the 2024 U.S. presidential election, things started to change for Bitcoin. On November 3rd, BTC sat at $67.8k, but within a few short days later, it spiked to $88.7k on November 10th, a then-all-time high. But there was still more to come. On December 4th, for the first time ever, Bitcoin would be worth over $100,000, a number that many would view as a milestone. Just a couple of weeks later, BTC saw a record-high of over $106k, a number that it has yet to get back to.
A Slowdown – Lessons Learned?
Since hitting its record high, BTC has seen a bit of a slowdown. Recently, we’ve seen prices as low as $92k, but as this is written, the currency is trading at $96.5k.
What, if any, lessons are to be learned about the last 12 months? For one, we need to understand that there seems to be plenty of growth left for Bitcoin. There are no natural ceilings for Bitcoin, as many have seen a single Bitcoin being worth over $1,000,000 at one point in the future. However, there is still plenty of room for loss as well. For every gain there is in an investment, someone is losing their money (or minds). Many find themselves allured by the high value of cryptocurrency. When Bitcoin hits new record highs, many buy in. The problem is that there is often, as can be seen in 2024, a fall-off period shortly after highs.
“So what should I do if I bought in at $105k?” My answer would be to wait, if you can afford to do so. Avoid buying in at record highs, there will be lulls. But if you do, hold your money. If (when) Bitcoin hits $105k again, you can either feel the relief that you didn’t make a mistake, or feel the relief that you can sell your investment. If you can afford to do so, leave the money where it is and watch it grow. Bitcoin still has plenty to grow, so it’s important to invest money that you’re willling to lose, and watch it grow.
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