Bitcoin’s price saw a drastic drop below $19,000 Thursday morning as the latest government inflation data showed prices continue to rise despite the Federal Reserve’s efforts to bring them down.
The token has been relatively stable lately, though it has struggled to stay above $20,000 for more than a brief time in recent weeks.
The most popular crypto token has had a rough year, falling more than 60% in value since the start of January. Recently, bitcoin has mostly kept to the $19,000 range, with occasional dips into the $18,000s. On Tuesday, the token reclaimed $20,000, but that ultimately proved to be a brief stint, sliding back down later in the week.
Despite low prices, bitcoin has held steady over the last couple of weeks. That’s significant because its stability came at a time when gold, foreign currencies and stocks plummeted. Some experts say this could be because long-term investors remain unfazed by red flags in the U.S. economy.
Some investors are also beginning to wonder if the current disconnect between crypto and stocks means that crypto will stop tracking the stock market. Experts don’t think we’re there just yet, and they aren’t sure it’ll happen at all. At a minimum, crypto needs more time before it breaks free of stock prices.
In any case, bitcoin prices remain low — and it doesn’t seem that’ll change soon. Experts point to macroeconomic factors that are likely driving the price, including rising interest rates, the war in Ukraine and stubbornly high inflation, not to mention the US may be headed into a recession.
Bitcoin hasn’t been above $50,000 since Dec. 25, 2021. Despite the ups and downs, Bitcoin’s price has seen a nearly 70% drop in value since its all-time high above $68,000 on Nov. 10, set back by surging inflation, lagging recovery in the job market, and the Fed’s ongoing signals that it would begin winding down pandemic measures to support the economy.
Here’s how Bitcoin’s current price compares to its daily high point over the past few months:
| ONE WEEK AGO (OCTOBER 12) | ONE MONTH AGO (SEPTEMBER 19) | 3 MONTHS AGO (JULY 21) |
|---|---|---|
| $19,058.63 | $19,437.16 | $23,313.30 |
Though it has had a slow start to the year, Bitcoin still entered 2022 on a relatively high note, with a strong November and early December that gave way to the recent downward trend. After starting 2021 in the $30,000 range, Bitcoin increased throughout the year and hit its current all-time high when it went over $68,000 on Nov. 10.
Despite falling back significantly from its latest all-time high price, many experts still expect Bitcoin’s price to rise above $100,000 at some point — describing it as a matter of when, not if. Shortly after Bitcoin’s latest all-time high in November, Ethereum marked its own new all-time high when its price went over $4,850. Ethereum has seen similar volatility following the latest high.
Bitcoin hit its first high of the year in 2021 when it went above $60,000 in April, and the price movement since then highlights the cryptocurrency’s volatility in a time when more and more people are interested in getting in on the action. In the weeks between a July low point that took it below $30,000 and its most recent high point in November, Bitcoin swung wildly up and down. The future of cryptocurrency is sure to include plenty more volatility, and experts say this is all par for the course.
We’ve talked to investing experts and financial advisors who advise against sinking much of your portfolio into the asset class for this very reason. They work with clients to make sure volatile crypto investments aren’t getting in the way of other financial priorities, like saving an emergency fund and paying off high-interest debt.