Donald Trump claims Bitcoin 'seems like a scam'
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As one of the market-leading cryptocurrencies, bitcoin has gained significant interest over the last few months. Like all cryptocurrencies though, bitcoin is incredibly volatile and its price is subject to change without notice.
What is bitcoin’s price today?
According to the latest CoinDesk data, bitcoin has dropped in price by 2.78 percent in the last 24 hours.
As of Thursday afternoon, bitcoin had a price of $33,707.10 (£24,408.73).
Additionally, bitcoin had a market cap of $631.85 billion (£457.55 billion)
While the latest price is not as low as the dips below $30,000 seen in the latter half of June, the drop is still significant.
In recent weeks bitcoin has hit staggering heights and earlier this week bitcoin’s price exceeded $36,000 at times.
According to CoinDesk data, bitcoin also crossed over the $40,000 mark at some points of June too.
The price of the cryptocurrency surged last month as Tesla CEO Elon Musk suggested the company may accept bitcoin in the future again, having previously announced a halt on bitcoin transactions for Tesla vehicles.
Why is bitcoin dropping?
There are a number of factors which can influence the price of cryptocurrencies in an instant, so it is difficult to pinpoint the exact reason behind a drop in price.
Based on CoinDesk data, bitcoin had previously been experiencing a surge in price before dropping on Thursday.
Robin Powell, Head of Client Education at Rock Wealth, explained to Express.co.uk: “One of the interesting things about the most recent surge in the bitcoin price is that there was more interest from significant investors.
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“Some large asset managers have been adding it to their portfolios. Big banks have been talking about how it could offer investors the same kinds of protection as gold does.
“This doesn’t guarantee that the current price is sustainable. It is still quite possible that at some point these investors will decide, for many possible reasons, that bitcoin really isn’t as useful as they thought it was.
“It is very possible that the real value of bitcoin is, as the Financial Conduct Authority (FCA) warns, nothing.
“However, for now at least, their interest does mean that cryptocurrencies are being treated a little more seriously.”
Why is investing in bitcoin high risk?
Cryptocurrencies like bitcoin are known to be incredibly volatile and there is high risk associated with investing.
Crypto markets are also known to be largely unregulated, with the FCA issuing a warning last month about investing in crypto assets.
Mark Steward, the Financial Conduct Authority’s (FCA) head of enforcement and market oversight, told City & Financial’s City Week event: “We have a number of firms that are clearly doing business in the UK without being registered with us and they are dealing with someone: banks, payment services firm, consumers. This is a very real risk so we are worried about that.”
The information in this article does not equate to financial advice. Anyone considering investing in cryptocurrencies should understand the risks involved.
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