$BTC The “crypto winter” of 2021 and 2022 now seems a distant memory. That was a major crisis for cryptocurrencies, and one in which the bitcoin price slumped below $20,000, losing 75% over 12 months.

Such a turnaround is impressive, but the history of bitcoin is one of extreme highs and lows, says John Plassard, senior investment specialist at Mirabaud Group: “Bitcoin’s unprecedented rise reflects a blend of increased legitimacy and growing demand, but history suggests caution as bitcoin’s price trajectory has been marked by sharp corrections following periods of exponential growth.”

Cryptocurrencies are known for their high volatility. Prices can fluctuate significantly in short periods, induced by factors such as market sentiment and risk appetite, regulatory news, technological developments, and macroeconomic trends.