Interest in cryptocurrencies tends to rise along with their prices. So no surprise that Google searches for bitcoin, the world’s biggest cryptocurrency by market cap, are spiking. Up 33% in the past week alone.
In a sign of investor myopia, searches for ether — the world’s second biggest cryptocurrency by market cap — haven’t leapt nearly as much.
And both bitcoin and ether have had a stellar 30–day run.
You can see bitcoin’s one month price chart below (in US dollars):
Bitcoin is up 27.9% in 30 days. The current price of US$10,304.79 gives bitcoin a market cap of US$188.1 billion (AU$300.0 billion).
Despite a more muted interest in google search numbers, ether had an even better month. Here’s its 30 day price chart:
The current price of US$242.92 puts ether up 69.2% over the past month. And gives it a market cap of US$26.6 billion (AU$39.6 billion).
There are as many theories for its price rise as their experts touting their…erm…expertise. We lean towards the fact that bitcoin is approaching its next halving. That happens every four years and is next likely this May.
If you’re not familiar, a halving is where the reward received by bitcoin miners gets cut in half. It’s happened twice before, and both times saw bitcoin run far higher over the following year.
Of course, there’s no guarantee we’ll see the same thing happen again. While bitcoin could return to its 2017 highs of almost US$20,000…or shoot far higher…all cryptos remain highly volatile. As much as you can see your investment gain 20% in a matter of days you can also see it wiped out just as fast.
Which brings us to a timely reminder.
Never invest money into bitcoin or any crypto that you can’t afford to lose. And always pay for your crypto investments up front, not with a credit card. Don’t risk seeing them lose money and having to pay 18% or more in credit card interest.
Ed note: Bitcoin isn’t the only asset to have had a good run. Gold is up 16.9% over the past 12 months. And the classic haven asset displays a lot less volatility than bitcoin. This free report reveals why both assets could have a lot higher to run. You can download that…for free…right here.