Coinbase CEO Brian Armstrong issues a heavy warning as Bitcoin goes up to $ 25,000

Bitcoin has risen higher again, heading up to new full-time highs of more than $ 24,000 per bitcoin after the start of the week at below $ 19,000.

The price of bitcoin, up a staggering 30% this week alone, climbed to $ 24,220 on the Luxembourg-based Bitcoin and cryptocurrency exchange before falling back slightly.

However, amid this week’s massive collection of bitcoin and cryptocurrency by Santa – which has added more than $ 100 billion to the value of the world’s digital tokens – Coinbase chief executive Brian Armstrong has warned of the “threat” in terms of bitcoin and cryptocurrency investment.

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“While it’s great to see market rallies and news organizations turning their attention to this emerging asset class in a new way, we can’t stress enough how It ‘s important to understand that investing in crypto is not risky, “Armstrong wrote in a blog post this week – published just before the San Francisco – based company revealed that they have secretly filed for an initial long-awaited public offering (IPO) by the U.S. Securities and Exchange Commission (SEC).

Coinbase is jumping on the IPO bandwagon at a time when other technology companies, such as AirBnB and DoorDash, are debating high-end valuations. When Coinbase, which makes money through taxes linked to customer trades, last raised money in 2018 it was valued at $ 8 billion.

“Crypto can be a volatile asset class,” Armstrong said. “Often larger than the types of traditional financial instruments most investors are used to. For example, this means that the market can move both sides much faster than equity markets.”

The price of bitcoin, after starting the year at around $ 7,000, fell to less than $ 4,000 in March when a pandemic caused a pandemic to enter markets. It quickly grew to around $ 10,000 and began climbing towards its 2017 high in October.

Rising bitcoin prices have accelerated in recent months as a growing number of high-profile investors cite bitcoin as a potential inflation hedge and some of the largest banks biggest in Wall Streets changing the tune on the digital asset class.

“Like all asset classes, crypto markets will rise and fall over time,” Armstrong wrote, pointing to a 2017 bitcoin bubble that saw the price of bitcoin climb from less than $ 1,000 at start of the year to just around $ 20,000 to fall back to $ 3,000 in 2018.

“Sometimes we see strong market rallies where prices rise quickly and strongly. While we are always excited to see more interest in crypto, it is also important to point out that it is not. This is not only a time of high volumes, but also price volatility. “

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Despite these warnings, the bitcoin and cryptocurrency community has been marking the return of the price of bitcoin to its high levels, with many long-term cryptocurrency investors feeling unimpressed after three years out in the cold.

“We are now officially in an unregistered domain,” Ian Balina, chief executive of Washington DC-based bitcoin and cryptocurrency data company Token Metrics, said via email, adding that he believes the price of bitcoin could climb to around “$ 50.00 within the next few years.”

“I think the $ 20,000 low is just the beginning,” JP Thieriot, California-based bitcoin and cryptocurrency exchange chief executive, said in an emailed comment.

“This upward trend is likely to continue for months to come, as investors continue to buy into consumer-style digital platforms that provide greater access to markets. that is what traditional financial service providers do. “