Bitcoin has experienced extreme volatility in its price over the years. Since its inception in 2009, the digital currency has seen some wild swings, both in terms of appreciation and depreciation.
In December 2017, the price of a single Bitcoin peaked at nearly US$20,000, before crashing to around US$3,200 in December 2018. Since then, the price of Bitcoin had been on an upward trend, reaching an all-time high of US$58,332 in February 2021. However, the price has since come down to around US$50,000. This volatility can be attributed to a number of factors, such as investor sentiment, government regulations, and the availability of alternative digital currencies. The extreme volatility of Bitcoin has also made it both a risky and potentially lucrative investment. On the one hand, investors can make large profits if they time the market correctly.
On the other hand, investors can also incur huge losses if the market turns against them. As such, investors should be aware of the risks associated with investing in Bitcoin and should only invest what they can afford to lose.