Cryptocurrency markets have been in a frenzy since the price of bitcoin today hit an all time high of $10,000 Cryptocurrency market capitalization ( the price of all ryptocurrencies multiplied by available volumes ) has also hit an all time high of $310 billion, signalling an influx of money into cryptocurrencies other than bitcoin.
Why the price rose
The rapid price increase in the last few weeks has been attributed to the impending start of trading in bitcoin futures.
Where does the price go from here ?
Opinions are divided as to the future direction of the price of bitcoin. Some analysts are of the view that a a major correction is due, since the cryptocurrency has appreciated by over 800% year to date.
The cryptocurrency began trading at this year at a price of $966 per coin according to data from coinmarketcap.com and today hit a high of $10,100. In Naira terms, if you had bought a bitcoin at N324,000 it would now be worth over N3.6 million.
News of the rapid price increase has encouraged new investors to purchase the cryptocurrency.
Others however hold the position that news of the trading in futures has already been priced in and a major price correction is imminent. Yet others hold the position that governments across the world may begin to clamp down on the currency. User adoption, has also remained quite low.
What can investors do ?
Investors that bought into the coin earlier this year, could decide to liquidate part of their holdings to Naira or US dollars, and repurchase them in the event of a dip in price. Those eager to buy at this point should exercise caution as the probability of a dip is quite high.
