Investors who waded into the cryptocurrency market have had an amazing 2021 with close to a 7000% return – a truly mindboggling statistic. Financial experts expect Bitcoin prices to hit the $100,000 mark sometime soon. Considering that prices reached an all-time high of $68,000 and dropped below $50,000, Bitcoin prices are expected to soar in the near future.
Ethereum prices aren’t doing too badly either – prices currently hover around $3900 and are expected to hold steady and even rise in the next few months. There is a lot of interest in the cryptocurrency market as it is a new investment tool. Experts and governments urge cautious investing as it is a volatile market.
Altcoins is a group of cryptocurrencies that was set up as an alternative tool to bitcoin. Many of the currencies under this heading have been struggling to make their presence felt in the market. This is because Bitcoin is such a large presence and better-known investors prefer to put their money in a known quantity.
All in all, the financial markets are in flux because of government policies regarding investing in crypto and, in some instances, an outright ban on investing in this arena. Experts are taking a wait-and-see stance and are betting big on Bitcoin prices reaching new highs. For risk-averse investors, experts recommend not putting in more than 10% of the money in this high-risk and high reward arena. Ultimately, crypto users will have to proceed based on their own appetite for risk.