Bitcoin price back in the green but this wealth manager won’t touch it

High volatility means some investors can make a lot of money, while others can lose their shirts.
The post Bitcoin price back in the green but this wealth manager won’t touch it appeared first on The Motley Fool Australia. –

The Bitcoin (CRYPTO: BTC) price is back in the green.

The digital token has shrugged off its recent losing streak to gain 2.66% over the past 24 hours.

The Bitcoin price currently stands at US$40,320 (AU$54,632).

In a sign of the continuing volatility involved with investing in cryptos, even the world’s biggest crypto by market cap, Bitcoin traded as low as US$37,380 and as high as US$41,378 since this time yesterday.

In other words, the Bitcoin price swung through a range of almost 11% in a single day.

And it’s just this sort of volatility that’s keeping some of the wealthiest investors on the sidelines.

Bitcoin price volatility too risky for wealth manager

Carter Henderson is the portfolio manager at United States-based investment management firm Fort Pitt Capital Group. Henderson is steering well clear of crypto assets for now.

Speaking to Bloomberg, Henderson said:

We don’t advise any of our clients to go into it. Right now, it’s too unknown of a space to be in and two, the volatility of wealth management clients to be in an asset class like that doesn’t fit the risk profile.

Indeed, taking a step back to look at the Bitcoin price performance just in 2021, we see a massive trading range.

What type of volatility have we seen this year?

Bitcoin kicked off the year at US$29,111. That means investors with nerves of steel who bought on 1 January and held on through the ups and downs would be sitting on virtual gains of 38% at today’s Bitcoin price.

But spare a thought to crypto investors who bought in at the 16 April all-time high of US$64,829. They’re still nursing a loss of some 38%.

Depending on your own personal risk profile, that level of volatility may or may not be acceptable.

Just remember, never invest more into cryptos than you can afford to lose.

The post Bitcoin price back in the green but this wealth manager won’t touch it appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bitcoin right now?

Before you consider Bitcoin, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bitcoin wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Here’s what’s keeping Bitcoin investors awake at night

How this global crypto exchange indicator is bullish for Bitcoin

Bitcoin price tumbles 6% after 10 days of gains…now what?

ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high

3 reasons why new ‘Britcoin’ will drive Bitcoin higher

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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