Bitcoin is on the decline – 4 things you should know about the crypto market
4 – Bitcoin is volatile
You know it now, but it bears repeating. There is a lot of money to be made here, but there is also a lot to be lost. The Financial Conduct Authority reminded UK investors earlier this year of the potential to “lose all their money” invested in the asset.
Bitcoin trading is, for now at least, pure speculation. It fulfills little material function and offers no income. With few fundamentals behind it, its price is sensitive to all kinds of influences. A tweet from Elon Musk can be as powerful as a national crackdown.
No doubt the currency will rebound from its current nadirs – this also probably won’t be the last time it stings investors.
(%) As of June 30
Past performance is not a reliable indicator of future returns
Source: Refinitiv, yields in US dollars as of 30.6.21
Important information: Investors should note that the opinions expressed may no longer be relevant and may have already been implemented. This information does not constitute a personal recommendation for any particular investment. If you are unsure of the suitability of an investment, you should speak with a Fidelity advisor or a licensed financial advisor of your choice.