Bitcoin Price Update: Nov. 7, 2024

Bitcoin is the original cryptocurrency and remains the most popular crypto coin on the market, with a market capitalization of over $1.1 trillion. Like other cryptocurrencies, Bitcoin is vulnerable to extreme volatility and sudden price fluctuations. As of 9 a.m. Eastern time today, the price of Bitcoin (1 BTC) is $74,707.50, a difference of +0.92% from yesterday.

Bitcoin price
Percentage changePrice of Bitcoin yesterday$74,023.32+0.92%Price of Bitcoin 1 month ago$62,098.69+20.3%Price of Bitcoin 1 year ago$35,633.63+109.65%Price of Bitcoin yesterday$74,023.32+0.92%Price of Bitcoin 1 month ago$62,098.69+20.3%Price of Bitcoin 1 year ago$35,633.63+109.65%

Bitcoin was originally envisioned as a technology for payments. Today, however, most people consider it to be an investment asset—something to save in a Bitcoin IRA, for example.

As a decentralized, digital asset, the top cryptocurrency is a popular investment choice for people who want to add alternative assets to their portfolios. Many find cryptocurrency appealing as a hedge against inflation or as a way to better diversify their investments. Bitcoin has experienced astronomical growth and has outpaced recent gains on major stock market indices, making it an attractive alternative.

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Historical price of Bitcoin

Bitcoin is relatively young, especially in comparison to blue chip stocks like Pfizer, Nike, or Nestle. It was launched in 2009, and its price has skyrocketed.

In 2010, Laszlo Hanyecz, a software developer and an early believer in Bitcoin’s value, famously paid 10,000 Bitcoins for pizza. Today, those coins would be worth over $580 million.

Since then, Bitcoin’s price has continued to climb. At the beginning of 2024, its price was $44,187. By March 2024, its price reached its highest level ever, surpassing $73,079.

“The potential benefits of investing in crypto are potentially higher returns than a more traditional stock and bond portfolio may yield on its own,” said Drew Feutz, a certified financial planner (CFP) with Migration Wealth Management.

However, Bitcoin often experiences price fluctuations and dips. As of September 2024, its price had dropped to about $58,000.

Bitcoin price is influenced by various factors

Bitcoin’s prices rise and fall for a number of reasons. While the price of stocks can fluctuate based on company performance or industry news, Bitcoin is affected by other factors:

Bitcoin adoption: When a major company announces that it will begin accepting Bitcoin as a payment method, Bitcoin’s price tends to increase. In the past, Bitcoin’s price has increased significantly after companies Tesla, Ferrari, and Dell announced Bitcoin as an acceptable payment method.

Economic conditions: Generally, Bitcoin isn’t affected as much by inflation or interest rate changes as stocks. However, cryptocurrencies usually perform well when the economy is in good shape. When people are relatively comfortable and feel confident in their financial stability, they’re more willing to invest in alternative assets. When the economy is in decline, people take fewer risks and may decrease how much they invest in Bitcoin and other cryptocurrencies.

Regulatory activity: Because cryptocurrency is so new, regulations haven’t kept up. As the government outlines new laws and regulations, investors may become more wary of Bitcoin.

How to invest in Bitcoin

Investing in Bitcoin can take different forms.

Buy Bitcoin directly through a cryptocurrency exchange

Buying Bitcoin directly is one of the most popular ways to invest in cryptocurrency. You can buy Bitcoin by opening an account with a cryptocurrency exchange. You can sync the account with your bank account and use your money to buy Bitcoin.

Invest in a Bitcoin IRA

Another way to invest in Bitcoin is to open a Bitcoin IRA. A Bitcoin IRA is a tax-advantaged retirement account that allows you to invest in Bitcoin and other cryptocurrencies. Bitcoin IRAs have the same tax benefits and contribution limits as traditional or Roth IRAs, but you can invest in alternative assets.

Consider cryptocurrency ETFs

A relatively new way to invest in Bitcoin is through a crypto exchange-traded fund (ETF). With these ETFs, you don’t directly own Bitcoin, but the performance of the ETF will reflect Bitcoin’s performance.

Crypto ETFs allow you to buy and sell shares through an investment brokerage account, without the need to worry about storage for cryptocurrency or opening a separate cryptocurrency exchange account.

Invest in cryptocurrency-related stocks

For those wary of investing directly in Bitcoin, another option is to invest in cryptocurrency-focused stocks. Potential options include publicly traded cryptocurrency exchanges, technology firms, and payment processors; these companies may use Bitcoin or use it in their operations, so you’ll indirectly benefit from Bitcoin’s performance.

Is it a good time to invest in Bitcoin?

Bitcoin is still a relatively new asset, but it has displayed impressive past performance, and more and more companies are using it or accepting it as a payment method. As Bitcoin becomes more established, it may experience fewer fluctuations in price too.

“Bitcoin’s price volatility is steadily decreasing over the years,” said Brady Swenson, co-founder and head of product marketing at Swan Bitcoin. “As a far more liquid asset, its price volatility is lower than relatively illiquid cryptos.”

If you plan on holding onto your investment for the long haul, investing money into Bitcoin could be a good choice.

“It’s always a good time to invest in Bitcoin with a long-time horizon, [such as] 10 or more years,” said Swenson. “Cryptos are for gambling, not investing.”

Current cryptocurrency prices

Although Bitcoin is the most well-known cryptocurrency, it’s not the only investment option you have. When deciding where to invest your money, consider these alternatives:

CryptocurrencyPrice per coinBitcoin$74,707.50Ethereum$2,807.50Tether (USDT)$1.00Binance Coin (BNB)$590.83Bitcoin$74,707.50Ethereum$2,807.50Tether (USDT)$1.00Binance Coin (BNB)$590.83

Ethereum: After Bitcoin, Ethereum is the second-largest cryptocurrency. Unlike Bitcoin, Ethereum wasn’t created to serve primarily as currency. Instead, it was designed as a decentralized computing platform, and it’s a popular tool for developers.

Tether: Tether is a stablecoin, meaning its value is tied to another asset. In Tether’s case, its value is linked to the United States dollar. As a result, Tether tends to be less volatile than Bitcoin, but that also means it lacks Bitcoin’s growth.

Binance Coin: Binance Coin is a cryptocurrency that you can use on the Binance exchange ─ the largest cryptocurrency exchange based on trading volume. It can be used to buy other forms of cryptocurrency, pay Binance fees, or for payment processing.

The takeaway

Despite some severe dips, Bitcoin’s performance has been impressive. Over the past 15 years, Bitcoin’s price has skyrocketed and, as companies adapt to the technology and it’s a more commonly accepted payment method, there’s the potential for even more growth.

However, cryptocurrencies like Bitcoin can be volatile and risky. Since Bitcoin is so new, it’s hard to gauge how it will truly perform over the long term. Only invest what you don’t need in the short term and diversify your portfolio so that the performance of your other investments can reduce the impact of Bitcoin’s price fluctuations.

“[I suggest] keeping their crypto position to 5% or less of their overall portfolio,” said Feutz.

Frequently asked questions

Does Bitcoin outperform the stock market?

Although Bitcoin is fairly young, its performance over the past 15 years has been impressive. Over the past five years, its price has increased by over 450%. To put that performance in perspective, consider that the S&P 500 ─ a stock market index that tracks the performance of 500 of the largest companies in the U.S. ─ increased by about 85% over the same period.

How can I use my Bitcoin money?

You can use your Bitcoin holdings in several ways:

Sell it for cash: If you sell your Bitcoin holdings, you can get cash that you can transfer to your bank account (or invest in other assets).

Trade it for other coins or tokens: If you hold Bitcoin, you can trade your Bitcoin for other forms of cryptocurrency, such as Ethereum or Dogecoin.

Pay for purchases: Some companies allow you to use Bitcoin as a payment method. You can use your holdings to book hotel stays, purchase a new computer, or cover a restaurant bill.

How do I start investing in Bitcoin as a beginner?

To start investing in Bitcoin (or any cryptocurrency), you’ll need to open an account with a cryptocurrency exchange. Once the account is created, you can transfer money to your crypto account from your bank. After the money is transferred, you can place an order for Bitcoin and other tokens or coins.

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