Bitcoin and Ethereum prices saw a steady decline last week; however, in the last 24 hours, they have shown a slight increase, with Bitcoin increasing by 3.81 percent and Ethereum by 1.31 percent.
Changes in the cryptocurrency market
As shown by CoinMarketCap, the global cryptocurrency market has increased by 1.44 percent. The market cap is now at 2.35 trillion over the last 24 hours. As compared to last week, the cryptocurrency market has grown by approximately 19 percent. Other cryptocurrencies also recorded fluctuations in the last 24 hours.
Historically, the fourth quarter has been a positive one for Bitcoin compared to other years. It has recently risen above the $55,000 mark for the first time since May 2021. This increase follows weeks of staying at around $40,000.
So, should investors be worried?
Cryptocurrency experts and analysts have attributed the slight increase partly to institutional inflows. Many long-term crypto investors see Bitcoin’s and Ethereum price fluctuations as normal.
However, you should be keen not to sell too fast. As long as you are investing in cryptocurrency, expect price fluctuations over time. Don’t let a slight price increase compel you to sell immediately and alter your investment strategy.
Whether the crypto you’ve invested in has gone up or down, the right and best thing to do is to let it slide. Study the markets so that you know the best time to enter and exit. Avoid overreacting to sudden price shifts.
How much can you comfortably risk?
The US Securities and Exchange Commission is expected to approve the first ever Bitcoin Exchange Trade Fund in a few weeks. This will see huge investments in Bitcoin — the largest and most popular crypto.
Financial advisers say that if your crypto investments do not interfere with your other financial goals and objectives, and you only invest what you are okay with losing, take the risk.
Risks associated with investing in Bitcoin or Ethereum are similar, and the potential increase or decline for either is highly unpredictable. Being the top two cryptos globally, It’s advisable you invest in both for optimal results.
Investing in Bitcoin, Ethereum, or other cryptocurrencies should always be considered a risk due to their massive volatility. Cryptocurrencies are not yet properly regulated. Crypto experts recommend investing below 5 percent of your total portfolio.
