Current price of Bitcoin: Oct. 2. 2024

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

Because it is a decentralized digital asset, Bitcoin has become a popular investment choice for people who want to add alternative assets to their portfolios. Many find Bitcoin and other cryptocurrencies appealing as a hedge against inflation, or simply as a great way to increase diversification. Bitcoin has experienced astronomical growth and has outpaced recent gains on major stock market indices, making it an attractive alternative. 

Historical price of Bitcoin

Compared to blue chip stocks like Pfizer, Nike, or Nestle, Bitcoin is quite young. 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. 

What factors impact the price of Bitcoin? 

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

• Bitcoin use: 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…