Bitcoin Rally Collides with Santa Rally

Bitcoin prices were fluctuating between losses and gains on Wednesday, searching for direction as traders continued wondering whether the weeks-long rally has finally run its course. Bitcoin was trading at $15,787.09 as of 8:35 a.m. EST, up nearly 63 percent since last month, but still significantly lower than highs hit only last week. The digital currency is up approximately 1,600 percent for the year.

Bears are predicting that bitcoin prices could plummet as low as $5,700 in the first quarter of 2018 while bulls have argued that a value of $60,000 isn’t out of the question. Ripple extended its gains on Wednesday, trading up 6.8 percent, while litecoin and Ethereum were both trading down, Bloomberg reported. Bitcoin cash was up 0.79 percent to $2,806.6.

Traders looking to take advantage of the crypto craze without investing directly in digital currencies are also exploring stocks that of companies that are deeply connected to bitcoin. Some such stocks are Overstock.com, one of the only online retailers to accept payment in BTC, and Riot Blockchain, both of which have surged in recent weeks. Since their launch earlier this month on the CBOE, bitcoin futures ETFs have also become popular investment vehicles for traders.

There are, in fact, many different ways to ride the bitcoin wave, but it is important to do your homework before choosing the option that is right for you. Consider your timeframe, the capital that you wish to spend and the return you’re looking for, as well as the fees and technical predictions related to your crypto assets of choice. There is no consensus as to which way bitcoin or other cryptocurrency prices are heading, so if you’re ready to get in, proceed with caution.     

Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.