In April 2021, Bitcoin reached an all-time high, with its price going over $60,000. This was a huge milestone and attracted a lot of attention from both the media and investors. Many people were excited about the potential for even higher prices and saw Bitcoin as a valuable asset. Some believed that Bitcoin could continue to grow and become a significant part of the financial world.

However, just a few months later, by July 2021, the price of Bitcoin had dropped to below $30,000. This was a sharp decline, and it worried many investors. Those who had bought Bitcoin at its peak price were now facing significant losses. This dramatic drop showed how unpredictable and risky investing in Bitcoin can be. Several factors contributed to this drop, including regulatory concerns in different countries, environmental concerns about the energy used in Bitcoin mining, and changes in investor sentiment.

The extreme volatility of Bitcoin has been a defining feature since its creation. It means that while there is potential for high returns, there is also a significant risk of losses. This characteristic of Bitcoin makes it different from traditional investments like stocks or bonds, which tend to have more stable prices.

Despite the volatility, many people continue to invest in Bitcoin. Some believe in its long-term potential and think that it will eventually become a widely accepted form of digital gold. Others are attracted to the opportunity to make quick profits from its price swings. Bitcoin's volatility can also be appealing to traders who use these price changes to make money by buying low and selling high.

Bitcoin's price movements often make headlines and can influence the broader cryptocurrency market. When Bitcoin's price goes up, other cryptocurrencies often see price increases as well. Similarly, when Bitcoin's price falls, it can drag down the prices of other cryptocurrencies. This strong influence is because Bitcoin is seen as the leader in the crypto world and often sets the trend for the market.