Bitcoin's price has been particularly volatile as of late.
The coin both rose and fell this week, at one point dropping by about 7% in a single hour alone.
These recent movements in bitcoin's price serve as a stark reminder of how erratic the cryptocurrency can be and why financial planners often consider it a discretionary investment.
Although bitcoin's price has roughly doubled in value since August 2023, it's not an appropriate investment for everyone, especially those with a lower risk tolerance.
Bitcoin's frequent price fluctuations undermine its reliability as a store of value or as a hedge against inflation, at least in the short term.
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