Bitcoin PriceIf there’s one word that describes cryptocurrency and Bitcoin price, its volatility 

After Feb 3, Bitcoin’s price has dropped to the lowest which is below US$37,000 on Monday night. After running above US$40,000 for most of the month, Bitcoin dropped back into the US$30,000 range on Friday and lagged throughout the weekend. It’s been a slow start to the year for Bitcoin, which in January dropped below US$34,000 — the lowest Bitcoin’s price had been since July 2021.

Bitcoin took less than a month in 2021 to smash its 2020 price record, surpassing US$40,000 by Jan. 7, 2021. By mid-April, Bitcoin prices reached new all-time highs of over US$60,000 as Coinbase, a cryptocurrency exchange went public.13 Institutional interest further propelled its price upward, and Bitcoin reached a peak of more than US$63,000 on April 12, 2021.14

By the summer of 2021, prices were down by 50%, hitting US$29,795.55 at the lowest on July 19. Autumn saw another bull run in September, with prices scraping US$52,693.32, but a large drawdown took it to US$40,709.59 about two weeks later.15

On Nov. 10, 2021, Bitcoin again reached an all-time high, US$68,990.90.16 In early December 2021, Bitcoin fell to US$49,243.39 before fluctuating more as uncertainty about inflation continued to spook investors alongside the emergence of a new variant of COVID-19, Omicron.

Bitcoin's decline since November has wiped out more than US$600 billion in its market value.

Crypto assets such as Bitcoin have matured from an obscure asset class with few users to an integral part of the digital asset revolution, raising financial stability concerns. Given their relatively high volatility and valuations, cryptocurrencies' increased co-movement could soon pose risks to financial stability especially in countries with widespread crypto adoption, according to IMF research. It is, thus, time to adopt a comprehensive, coordinated global regulatory framework to guide national regulation and supervision and mitigate the financial stability risks stemming from the crypto ecosystem.

The market value of these novel assets rose to nearly US$3 trillion in November from US$620 billion in 2017, on soaring popularity among retail and institutional investors alike, despite high volatility.

If there’s one word that describes Bitcoin and cryptocurrency, it’s volatile. Crypto prices soar and then seem to crash almost as quickly, while rumors, sentiment, and fundamental developments are quickly factored into the market.

For example, Bitcoin was skyrocketing in April 2021, hitting an all-time high of more than US$64,000. But just three months later the cryptocurrency had lost more than half its value, plummeting to under US$30,000. Then in November 2021, Bitcoin hit an all-time high again, at nearly US$69,000, but by late January had plummeted by more than 40 percent.

That volatility attracts traders looking to make a profit, but it’s nerve-wracking, especially for new investors looking to get started. And traders can expect plenty more of this volatility in the future, as new cryptocurrencies emerge and others fall by the wayside.