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Published: May 27, 2021 7 min read

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Hand Playing With A Bitcoin Shaped Yoyo
Jose Velez / Money

If you thought you could handle market volatility, Bitcoin's dizzying ups and downs are something else.

The largest cryptocurrency's price hit a record high of more than $63,000 per coin in April, when the IPO of crypto exchange Coinbase helped catch the public's attention. But the rally didn't last long: Bitcoin's price quickly dropped back down to around $30,000 in May. Two potential reasons: Electric vehicle company Tesla backtracked on a promise to accept Bitcoin as payment, and the Chinese government cracked down on crypto. Yet another promising tweet from Tesla CEO Elon Musk sent the price crawling back up to around $40,000 in late May.

It’s hard to keep up. Cryptocurrencies’ prices are fickle, to say the least — just look at Musk’s Saturday Night Live hosting gig that sent Dogecoin plunging 30%.

So when can Bitcoin investors take a breather? If you’re watching daily price moves, probably not anytime soon. But here’s what to know about Bitcoin’s volatility and how to handle it.