Bitcoin has lost 30% of its value this week | CNN Business (2024)

FAQs

Why is Bitcoin dropping? ›

The largest digital asset hovered near $70,000 as recently as last Friday— not far from its record high —before geopolitical tensions around Iran's drone attack on Israel and renewed worries around inflation sent Bitcoin spiraling lower alongside the S&P 500.

It is theoretically possible. Bitcoin has been around for close to 15 years now, and although it has survived several dramatic crashes before making new highs, its extreme volatile nature puts investors at risk of losing all their money.

A recent report predicts that Bitcoin will reach a new all-time high in 2024. Bitcoin (BTC) is expected to reach a new record of $88,000 (€82,000) throughout the year, before it settles around $77,000 at the end of 2024, according to a new report. The cryptocurrency's current price sits at around $43,000.

The crypto market's recent 24-hour downturn is part of a broader correction that began on April 12. This period has coincided with escalating tensions between Iran and Israel following Iran's launch of attack drones and missiles in retaliation for an Israeli strike in Syria.

Bitcoin is a risky investment with high volatility, and generally should be considered only if you have a high risk tolerance, are in a strong financial position already and can afford to lose some or all of your investment.

Bitcoin holds steady after completing fourth-ever halving

Bitcoin completed its fourth-ever halving on Friday with prices remaining relatively stable through the weekend but below the all-time highs bitcoin reached in mid-March.

A $100 investment in Bitcoin could purchase 0.00607 BTC today based on a price of $16,466.14 at the time of writing. If Bitcoin hits the $1 million price target by Wood in 2030, the $100 investment would turn into $6,070. This represents a gain of 5,970% from now until 2030.

The short answer: No. Bitcoin is a particularly risky investment with more volatility than traditional investments of stocks, bonds and funds.

In its latest research report, Ark Invests suggests an optimal Bitcoin allocation of 19.4%. In previous years, Ark Invest's optimal Bitcoin allocation was in the 0.5% to 6% range.

If Bitcoin continues this pattern into 2030, the price could peak around 2029 or 2030. If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.

How much will $1 Bitcoin be worth in 2025? ›

Who Owns the Most Bitcoins? Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.

Unlike traditional assets such as stocks or real estate which may have underlying physical value, the value of cryptocurrencies is purely speculative. In the event of a crash, the money doesn't vanish but rather shifts from investors who sell at lower prices to those who purchase at discounted rates.

Bitcoin the Cryptocurrency

In 2024, the majority of bitcoins are still out in the wild, so to speak—but over time, and if they continue to be treated as a speculative investment and store of value, these large entities will likely keep growing their holdings.

Bitcoins Are Not Widely Accepted

Bitcoins are still only accepted by a very small group of online merchants. This makes it unfeasible to completely rely on Bitcoins as a currency. There is also a possibility that governments might force merchants to not use Bitcoins to ensure that users' transactions can be tracked.

Halving reduces the supply of new bitcoins, which should in theory increase the price. It is an economic axiom that if demand for an asset remains stable while its supply decreases, its price should go up.

Amina analysts said miners are selling their bitcoin ahead of the halving. Since halving reduces their rewards, there may be some operations that become unprofitable. So miners are looking to shore up their balance sheets. “Currently, miner balances are near an all-time low.