The price of Bitcoin is at all-time highs after breaking above $72,000 yesterday Monday. The most popular cryptocurrency has appreciated by more than 90% since January 23rd. How far can it go?

Bitcoin has made a few rich and many bankrupt. If the general stock market has become a casino for some, cryptocurrencies are simply roulette. Although its use continues to be normalized and today it reaches places that seemed impossible a few years ago, it is still and highly speculative value with maximum volatility which can eliminate the investor in a very short time.

Bitcoin price at highs

Bitcoin remains the top target for retail and institutional investors watching the cryptocurrency market, with weekly inflows of around $2.6 billion. The cryptocurrency has been in a full bullish trend since late January when it hit its annual low of $38,509. Yesterday, Monday, they registered a an all-time high of $72,717which surpassed the previous one from November 2021.

Shares are up 9.5% in the past week, up 50% this month and up a whopping 90% since hitting a one-year low in January. This bull frenzy was fueled by the US Securities and Exchange Commission’s (SEC) decision to allow exchange-traded funds (ETFs). linked to the spot price decentralized digital currency.

Investors also discount the potential increase in value due to novelty halving which is expected in the month of April and which occurs only once in four years. This will cause cutting the production of “miners” in half which will reduce the creation of the cryptocurrency and potentially increase its price, as happened in previous cases.

Some analysts suggest that “this is just the beginning” and that cryptocurrency will compete with gold and other assets such as real estate and public debt as a store of value. He believes that in the short term, lower bitcoin creation and demand strength will send the price of bitcoin down around $100,000.

Not everyone is so optimistic on cryptocurrencies and other analysts warn of signals such as the index signal Crypto fear and greed which is in the “extreme greed” zone with 89.12 points compared to “neutral” 59.3 points at the beginning of February. The index measures prices and trading data of major cryptocurrencies and user behavior data that measures cryptocurrency market sentiment from 0 to 100.

The signs are that all-time highs will continue to be broken, but extreme caution should be exercised when investing in cryptocurrencies.