Bitcoin Price Tracker (BTC/USD) | Today’s Price

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How to Use This Price Tracker

Cryp­tocur­ren­cy pric­ing data can help investors find oppor­tu­ni­ties in the mar­ket and make more informed invest­ment deci­sions. NextAdvisor’s price track­er shows his­tor­i­cal price, trad­ing vol­ume, mar­ket cap­i­tal­iza­tion, and oth­er impor­tant met­rics for investors, espe­cial­ly those who are just start­ing to dip their toes into cryp­to investing. 

While every­day investors prob­a­bly don’t need every last bell and whis­tle to make informed invest­ment deci­sions, there are some gen­er­al­ly applic­a­ble key cryp­to met­rics and indi­ca­tors worth considering:

Crypto Indicators and Metrics for Beginner Investors

Price: As with any invest­ment, price is where it starts and ends for investors. Pric­ing is high­ly volatile in cryp­tocur­ren­cy, but viewed over time can give investors an idea of how a giv­en coin’s val­ue has gone up (or down) over time.

Mar­ket Cap­i­tal­iza­tion: In gen­er­al, the high­er the val­ue of the mar­ket cap the safer the invest­ment. Mar­ket cap is the total val­ue of a cryp­tocur­ren­cy, and is cal­cu­lat­ed by mul­ti­ply­ing the price of the cryp­tocur­ren­cy with the num­ber of coins in cir­cu­la­tion. The amount of tokens or coins cir­cu­lat­ing can be viewed as an indi­ca­tor of a coin’s demand. 

Vol­ume: High­er vol­ume typ­i­cal­ly means a giv­en cryp­tocur­ren­cy has more mar­ket liq­uid­i­ty, mean­ing more abil­i­ty for investors to sell an invest­ment when they want to real­ize a prof­it. It rep­re­sents how much cryp­to is bought and sold over a peri­od of time, typ­i­cal­ly 24 hours. 

If there’s one cryp­tocur­ren­cy you should know about, it’s bitcoin. 

It’s the orig­i­nal and most valu­able cryp­tocur­ren­cy by far, despite its huge — and nor­mal — swings in recent months, rang­ing in val­ue from less than $30,000 to more than $60,000. Bit­coin has also seen a surge of new investors, with more than half of all cur­rent bit­coin hold­ers hav­ing bought in the past year.

“I invest in bit­coin for three rea­sons: One of them is that the sup­ply is lim­it­ed, the sec­ond is decen­tral­iza­tion, and third, it is a cat­e­go­ry king,” says Kiana Danial, author of “Cryp­tocur­ren­cy Invest­ing For Dum­mies” and an invest­ing expert. “Every­body knows about bit­coin and imme­di­ate­ly gives it this value.”

Bit­coin was cre­at­ed in 2009 by an anony­mous fig­ure under the pseu­do­nym Satoshi Nakamo­to to func­tion as an elec­tron­ic peer-to-peer cash sys­tem, but has since attract­ed investors who view it as a store-of-val­ue cur­ren­cy, some­times described as dig­i­tal gold. Bit­coin set the stage for blockchain tech­nol­o­gy and decen­tral­ized finance. 

“Bit­coin by nature doesn’t real­ly solve a prob­lem,” says Danial. “It was just a show­case for decentralization.”

Based on those prin­ci­ples, the cryp­tocur­ren­cy mar­ket — which now con­sists of thou­sands of cryp­tocur­ren­cies — has grown to a val­u­a­tion of more than $2 tril­lion. While bit­coin has the longest record for investors to con­sid­er, it’s no less volatile. 

What’s Driving Bitcoin’s Price?

Bitcoin’s price fell below $24,000 on Fri­day fol­low­ing a strong week. Bit­coin tipped above $24,000 sev­er­al times this week but is see­ing “mas­sive resis­tance from the $25,000 lev­el,” accord­ing to Edward Moya, a senior mar­ket ana­lyst at bro­ker­age firm Oanda.

“It seems it might take a while longer for Bit­coin to ral­ly above the $25,000 lev­el, but when it does, its momen­tum could take it towards the $28,400 lev­el ini­tial­ly,” Moya says.

Over the last few months, bit­coin and oth­er cryp­tocur­ren­cies have large­ly remained under pres­sure as investors wres­tle with ris­ing infla­tion, geopo­lit­i­cal crises, and tighter mon­e­tary pol­i­cy by the Fed­er­al Reserve. The cryp­to mar­ket is increas­ing­ly track­ing the stock mar­ket late­ly, which com­bined with more main­stream adop­tion and the slump­ing prices start­ing the year, makes it even more inter­twined with glob­al eco­nom­ic fac­tors, experts say. 

In the short term, all these fac­tors have cre­at­ed some noise and extra volatil­i­ty in the cryp­to and stock mar­kets, but this is typ­i­cal dur­ing times of uncer­tain­ty. Volatil­i­ty is stan­dard in the cryp­tocur­ren­cy mar­ket, so experts pre­dict the ups and downs to continue. 

Bitcoin’s high point of the year so far remains in the ear­li­est days of Jan­u­ary, when it near­ly hit $48,000. In that same month, bit­coin also hit its six-month low as it dipped below $34,000. Bit­coin has lost 40% of its val­ue since its Nov. 10 all-time high above $68,000.

Bitcoin’s price has been between $23,000 and $25,000 this week. Here’s how its cur­rent price com­pares to its dai­ly high point over the past few months:

One Week Ago (August 5) One Month Ago (July 13) 3 Months Ago (May 14)
$22,678.36 $19,350.74 $29,310.73

Prices updat­ed: August 12, 2022

So what should cryp­to investors do in light of this volatil­i­ty? Noth­ing, accord­ing to the experts we’ve talked to. Giv­en crypto’s his­to­ry of volatil­i­ty, this increase doesn’t guar­an­tee a long-term rever­sal. Bitcoin’s price is just as like­ly to fall back down as it is to con­tin­ue climb­ing. The future of cryp­tocur­ren­cy is sure to include plen­ty more volatil­i­ty, and experts say that’s some­thing long-term cryp­to investors will have to con­tin­ue deal­ing with.

Bitcoin Predictions and the Future of Crypto

Bit­coin has shown as steady a rise in val­ue over the years as any oth­er cryp­tocur­ren­cy on the mar­ket, so it’s only rea­son­able for bit­coin investors to be curi­ous about how high it can ulti­mate­ly go. 

Con­ser­v­a­tive pre­dic­tions of bit­coin say the cryp­tocur­ren­cy will reach $100,000 by 2023, but more bull­ish cryp­to enthu­si­asts say $250,000 isn’t far from sight. Big finan­cial insti­tu­tions have made their own pre­dic­tions as well, with JPMor­gan see­ing a long-term high of $146,000 and Bloomberg say­ing it could hit $400,000 by 2022. A recent study by Deutsche Bank found that about a quar­ter of bit­coin investors believe bit­coin prices will be over $110,000 in five years. Because bit­coin is so new, price pre­dic­tions are most­ly informed speculations. 

What Bitcoin Investors Should Know

Bit­coin is a good place for begin­ner cryp­to investors to start, accord­ing to the experts we’ve talked to. But you shouldn’t invest in bit­coin just because oth­ers are doing it. More than any­thing, know what kind of investor you are and buy bit­coin only in a way that works with your long-term invest­ment strategy. 

If you’re invest­ing in bit­coin, expect volatil­i­ty. Just like you shouldn’t let a price drop influ­ence your deci­sion to buy bit­coin, don’t let a sud­den price increase alter your long-term invest­ment strat­e­gy. Even more impor­tant­ly, don’t start buy­ing more Bit­coin just because the price is rising. 

Investors should con­tin­ue to hold and not wor­ry about the fluc­tu­a­tions. No mat­ter if cryp­to is going up or down, the best thing you can do is to not look at it. Set it and for­get it like you would any tra­di­tion­al long-term invest­ment account. If you let your emo­tions get in the way, you could sell at the wrong time, or you might make the wrong invest­ment decision. 

How to Protect Your Bitcoin Investments

If you’ve incor­po­rat­ed bit­coin into your invest­ment port­fo­lio, here are some steps you can take to pro­tect it:

1. Watch for Crypto Red Flags

There are some com­mon red flags in cryp­to — sim­i­lar to clas­sic mon­ey wiring scams and cred­it card fraud — that you should keep an eye out for. They include:

  • Typo­graph­i­cal errors and obvi­ous mis­spellings in emails, on social media posts, and dur­ing any communication
  • Promis­es to mul­ti­ply your money
  • Con­trac­tu­al oblig­a­tions that lock you into hold­ing cryp­to with­out being able to sell
  • Fake influ­encers or claims to be a celebrity
  • Psy­cho­log­i­cal manip­u­la­tion like black­mail or extortion
  • Large social media cryp­to schemes
  • Promis­es of free money
  • Vague details about where your mon­ey is going

2. Protect Your Digital Wallet

Anoth­er way to pro­tect your bit­coin is to imple­ment good dig­i­tal secu­ri­ty habits, sim­i­lar to how you’d han­dle large sums of cash by putting them in a safe or FDIC-insured sav­ings account. Experts say small-scale investors with a few hun­dred dol­lars in bit­coin are prob­a­bly OK keep­ing it on a main­stream exchange like Coin­base. But if you have a sig­nif­i­cant amount of bit­coin, you can incor­po­rate a cryp­to wal­let for addi­tion­al safe­keep­ing. There are two types of cryp­to wal­lets: hot wal­lets and cold wallets.

Hot wal­lets are used to store cryp­to online. They are secure, but more sus­cep­ti­ble to hack­ing than cold stor­age, which is when you store cryp­to offline on a piece of hard­ware. Think of cold stor­age as kind of like a safe in USB-dri­ve for­mat. It’s more secure, but if you for­get your pass­word or lose the device, you could lose access to your mon­ey forever.

Because cryp­to held in hot wal­lets is not FDIC-insured, you’ll want to make sure that what­ev­er plat­form or wal­let you store your cryp­to in has robust secu­ri­ty mea­sures, including:

  • Two-fac­tor authentication
  • Stor­ing a por­tion of hold­ings in its own cold storage
  • Pri­vate insur­ance poli­cies in case of theft or hack­ing (sep­a­rate from FDIC insurance)

3. Keep Track of Your Wallet Keys

You only get one unique key to access your wal­let, which means you need to be extra care­ful about not los­ing your key or hav­ing it stolen. Don’t share your pri­vate key with any­one, just like you wouldn’t share your Social Secu­ri­ty num­ber or your deb­it card PIN. Main­tain­ing strong pass­words that you update reg­u­lar­ly and not using the same pass­word for mul­ti­ple accounts will make you less vul­ner­a­ble to hacks and scams. 

4. Report Fraud

Report fraud and oth­er sus­pi­cious activ­i­ty to what­ev­er cryp­to exchange you used to com­plete the cryp­to trans­ac­tion and to the fol­low­ing bureaus using these links:

How to Buy Bitcoin

Once you’ve learned the lin­go, accept­ed the risk, and met your oth­er finan­cial pri­or­i­ties, you’ll need to actu­al­ly buy in. The process for buy­ing bit­coin is the same as the process for buy­ing any oth­er altcoin. 

First, you’ll want to choose a cryp­tocur­ren­cy trad­ing plat­form to exchange your U.S. dol­lars for bit­coin or oth­er dig­i­tal cur­ren­cies. Depend­ing on the exchange you choose, you may need to pro­vide infor­ma­tion like your Social Secu­ri­ty num­ber, ID, and your source of income when you cre­ate your account. Once you’ve cre­at­ed your account, most exchanges will ask to con­nect your bank account or a deb­it card. That way, you can fund it with fiat cur­ren­cy, like U.S. dol­lars, to buy bit­coin. Once you’ve con­nect­ed a pay­ment method, you’ll be able to actu­al­ly place your order for bit­coin. This process can dif­fer depend­ing on how advanced the exchange is. 

Gen­er­al­ly, if you’re using a begin­ner-friend­ly plat­form like Coin­base or Pay­Pal, you can sim­ply enter the amount in dol­lars you want to trade for bit­coin, and buy at the cur­rent rate (after account­ing for any fees). If you use an exchange designed for more active trad­ing, you may have the option to place both mar­ket and lim­it orders.

Last­ly, make sure your cryp­to is stored safe­ly. Many exchanges let you to leave your invest­ment with­in your account, which is eas­i­est for most begin­ners. But if you want to fur­ther secure your dig­i­tal assets, you can trans­fer them into a hot or cold wallet. 

How to Choose an Exchange

There are hun­dreds of cryp­tocur­ren­cy exchanges you can use to buy cryp­to online, but a few of the more pop­u­lar ones are Coin­base, Gem­i­ni, and Krak­en. These exchanges are online plat­forms where you can buy and sell cryptocurrencies. 

You can nar­row down your search for the right plat­form by most­ly pay­ing atten­tion to secu­ri­ty and fees. If you plan to keep your cryp­to on your account with an exchange, make sure you choose an exchange that uses offline, cold stor­age, and has strong pro­tec­tions against theft. Some exchanges also have inde­pen­dent insur­ance poli­cies to help pro­tect investors from poten­tial hacking. 

Exchange fees can vary great­ly, and may be applied as a flat fee upfront or as a per­cent­age of your trades. Fees can be based on price volatil­i­ty, and many are charged per trans­ac­tion. While fees should def­i­nite­ly be a con­sid­er­a­tion, experts say you also get what you pay for, espe­cial­ly when stick­ing to the big­ger, more estab­lished exchanges like Coin­base. If an exchange has more pro­tec­tions, bet­ter secu­ri­ty, or oth­er fea­tures that are impor­tant to you, it may be worth slight­ly high­er fees.

The Best Exchanges for Crypto Trading

Cryp­tocur­ren­cy exchanges are a dime a dozen, but there are only a few we think make sense for cryp­to investors. The volatile, spec­u­la­tive nature of cryp­tocur­ren­cy invest­ing presents risks for investors no mat­ter how and where you buy it. 

That’s why the safe­ty of your invest­ment should be a top pri­or­i­ty when choos­ing a cryp­tocur­ren­cy exchange. The cryp­tocur­ren­cy exchanges that have been around the longest are usu­al­ly a safer bet than new­er ones. Here are our picks for the best cryp­to exchanges:

  • Coin­base: Good for beginners
  • Gem­i­ni: Good for expe­ri­enced investors
  • eToro: Good for prac­tic­ing cryp­to trading

Bitcoin Price History

Bit­coin has a much more exten­sive track record com­pared to oth­er cryp­tos, though it’s still in its rel­a­tive infan­cy com­pared to the 200+ year his­to­ry of the U.S. stock market. 

Bit­coin was cre­at­ed in 2009, with its first price being $0. By 2010, bitcoin’s first “big” jump hap­pened. The price rose from a frac­tion of a cent in the spring to $0.09 by July. Very few peo­ple, except for very niche tech experts and finance enthu­si­asts, knew enough about bit­coin to buy the currency. 

Bit­coin broke $1 in April 2011, enter­ing its first mini “bull run” and ris­ing by rough­ly 3,000% over the next three months. By Novem­ber 2011, the price bot­tomed out again at $2. Bit­coin didn’t bounce back in 2012, fin­ish­ing the year between $13 and $14. By Novem­ber 2013, bit­coin broke $1,000 — then the price dropped dra­mat­i­cal­ly by Decem­ber to around $530. Between 2014 and 2016, bitcoin’s price was large­ly stagnant.

But thanks to media cov­er­age and the steep rise in bitcoin’s price, the cryp­to indus­try start­ed to take off between 2017 and 2019. At the start of 2017, bit­coin final­ly broke $1,000 again and kicked off a bull run phase. Prices dou­bled to $2,000 in mid-May and then sky­rock­et­ed to over $19,000 by Decem­ber. By the end of 2019, bitcoin’s price was back down to $7,200. 

At the start of 2020 when the coro­n­avirus pan­dem­ic shut down the econ­o­my, bitcoin’s price start­ed to accel­er­ate in its upward climb. By Decem­ber 2020, bitcoin’s price had increased by over 300% since Jan­u­ary. The year end­ed at a price of about $29,374 — the high­est it had ever been.

Bit­coin con­tin­ued to grow in 2021, dou­bling its val­ue. Bit­coin sky­rock­et­ed to an all-time high over $64,000 in the first half of 2021, then just as quick­ly fell back below $30,000 over the sum­mer. Bit­coin hit anoth­er all-time high over $68,000 in Novem­ber 2021, but by Jan­u­ary 2022 had dropped back below $35,000. As of April 2022, bitcoin’s price hov­ers above $45,000.

Bitcoin vs. Ethereum

Bit­coin and Ethereum are the two largest cryp­tocur­ren­cies by mar­ket cap and exchange vol­ume, but they’re very dif­fer­ent when you look past the pop­u­lar­i­ty they share. 

Not only do they have tech­ni­cal dif­fer­ences, they also offer two com­plete­ly dif­fer­ent val­ue propo­si­tions for investors, which could be the decid­ing fac­tor for you. Many investors see bit­coin as a store of val­ue, like gold, that can be used as a guard against infla­tion. Ethereum, on the oth­er hand, is a soft­ware plat­form that allows devel­op­ers to build oth­er cryp­to-ori­ent­ed apps on it. To use Ethereum, devel­op­ers have to buy and pay fees to the net­work in Ethereum’s native dig­i­tal cur­ren­cy, ether. 

There are sim­i­lar risks asso­ci­at­ed with both bit­coin and Ethereum, and the poten­tial growth of either is high­ly spec­u­la­tive. Both are good options if you are just start­ing a cryp­to invest­ment jour­ney, and you could just split the dif­fer­ence and invest in both, experts say.

About Bitcoin

Bit­coin was the first cryp­tocur­ren­cy, and it is known as dig­i­tal gold. Bit­coin is the most valu­able cryp­to on the mar­ket, but is still high­ly spec­u­la­tive and volatile. 

When Was Bitcoin Created?

The inven­tion of the bit­coin cur­ren­cy (BTC) was simul­ta­ne­ous to the inven­tion of bit­coin as a blockchain, and it was the first of its kind in his­to­ry. It was cre­at­ed in 2009 by an anony­mous per­son or group of peo­ple, known pseu­do­ny­mous­ly as Satoshi Nakamoto.

What Gives Bitcoin Its Value?

Bit­coin is valu­able thanks to its lim­it­ed sup­ply steadi­ly increas­ing demand by a greater num­ber of investors. It has also been described by some as an infla­tion hedge. 

Unlike invest­ing in the stock mar­ket, with more pre­dictable returns on invest­ments like index funds, invest­ing in bit­coin has been likened to invest­ing in gold or oth­er alter­na­tive assets such as art or hors­es. That’s because there’s a finite amount of bit­coin out there. While a com­pa­ny can issue more stock options, there will only ever be 21 mil­lion bit­coins. So even if the val­ue of the dol­lar plum­mets, bit­coin, like gold, will retain a sep­a­rate val­ue in theory.

Bitcoin Market Cap

Bitcoin’s mar­ket cap­i­tal­iza­tion is found by mul­ti­ply­ing the cur­rent num­ber of coins in exis­tence — over 19 mil­lion — with bitcoin’s price at a giv­en time. As bitcoin’s price fluc­tu­ates, which it does fre­quent­ly, so too does its mar­ket cap­i­tal­iza­tion. In the past few weeks, bitcoin’s price has been between around $34,000 to $47,000, which trans­lates into a sig­nif­i­cant range in mar­ket capitalization:

  • $38,000 x 19 mil­lion = $722 billion
  • $42,000 x 19 mil­lion = $798 billion
  • $46,000 x 19 mil­lion = $874 billion 

Frequently Asked Questions

Is Bitcoin still a good investment in 2022?

Over­all, bit­coin is con­sid­ered a high­ly spec­u­la­tive and risky asset com­pared to con­ven­tion­al invest­ments. While there is no guar­an­tee you will get any of your mon­ey back, bit­coin has become the most valu­able and com­mon­ly held among the thou­sands of cryp­tocur­ren­cies that have since been cre­at­ed. As the first cryp­tocur­ren­cy, bit­coin has the longest record for investors to con­sid­er. The poten­tial reward comes with high­er risk, so make sure any invest­ment in bit­coin is includ­ed in your broad­er portfolio’s riski­er, more aggres­sive allocation.

Will Bitcoin crash again?

Bitcoin’s rise in val­ue and pop­u­lar­i­ty has been steady, if not with­out its ups and downs. But there are no guar­an­tees when it comes to invest­ing in cryp­to. As quick­ly as bit­coin falls, it can just as rapid­ly climb again. Volatil­i­ty is the norm for cryp­to, most­ly due to it being an imma­ture mar­ket. There are also new reg­u­la­tions and poli­cies that are con­stant­ly reshap­ing the mar­ket and caus­ing dras­tic swings — and hype on social media.

Do you pay taxes on Bitcoin?

Yes, bit­coin is tax­able. The IRS con­sid­ers cryp­tocur­ren­cy hold­ings to be “prop­er­ty” for tax pur­pos­es, which means your vir­tu­al cur­ren­cy is taxed in the same way as any oth­er assets you own, like stocks or gold.

The infor­ma­tion con­tained here­in is pro­vid­ed “as is” for edu­ca­tion­al and infor­ma­tion­al pur­pos­es only and is not intend­ed to serve as invest­ment advice or for trad­ing pur­pos­es. Infor­ma­tion con­tained here­in is not and should not be con­strued as an offer, solic­i­ta­tion, or rec­om­men­da­tion to buy or sell secu­ri­ties or any assets. The infor­ma­tion has been authored from sources we believe to be reli­able; how­ev­er no guar­an­tee is made or implied with respect to its accu­ra­cy, time­li­ness or com­plete­ness. Pre­sen­ters may own the assets they dis­cuss. You should not treat any opin­ion expressed by pre­sen­ters as a spe­cif­ic induce­ment to make a par­tic­u­lar invest­ment or fol­low a par­tic­u­lar strat­e­gy, but only as an expres­sion of their opin­ions. The infor­ma­tion and con­tent are sub­ject to change with­out notice. We are not under any oblig­a­tion to update or cor­rect any infor­ma­tion pro­vid­ed here­in. Past per­for­mance is not indica­tive of future results. We do not pro­vide any indi­vid­u­al­ized invest­ment advice. Accord­ing­ly, this mate­r­i­al does not take into account your par­tic­u­lar invest­ment objec­tives, finan­cial sit­u­a­tion or needs and is not intend­ed as rec­om­men­da­tions appro­pri­ate for any person’s indi­vid­u­al­ized cir­cum­stances. You must make an inde­pen­dent deci­sion regard­ing any invest­ment sug­ges­tions cov­ered by the mate­r­i­al. Before act­ing on any invest­ment sug­ges­tions from the mate­r­i­al, you should con­sid­er whether it is suit­able for your par­tic­u­lar cir­cum­stances and strong­ly con­sid­er seek­ing advice from your own finan­cial or invest­ment advi­sor. You should be aware of the real risk of loss in fol­low­ing any strat­e­gy or invest­ment discussed.

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