The Bitcoin (CRYPTO: BTC) price is back in the green.
The digital token has shrugged off its recent losing streak to gain 2.66% over the past 24 hours.
The Bitcoin price currently stands at US$40,320 (AU$54,632).
In a sign of the continuing volatility involved with investing in cryptos, even the world's biggest crypto by market cap, Bitcoin traded as low as US$37,380 and as high as US$41,378 since this time yesterday.
In other words, the Bitcoin price swung through a range of almost 11% in a single day.
And it's just this sort of volatility that's keeping some of the wealthiest investors on the sidelines.
Image source: Getty Images
Bitcoin price volatility too risky for wealth manager
Carter Henderson is the portfolio manager at United States-based investment management firm Fort Pitt Capital Group. Henderson is steering well clear of crypto assets for now.
Speaking to Bloomberg, Henderson said:
We don't advise any of our clients to go into it. Right now, it's too unknown of a space to be in and two, the volatility of wealth management clients to be in an asset class like that doesn't fit the risk profile.
Indeed, taking a step back to look at the Bitcoin price performance just in 2021, we see a massive trading range.
What type of volatility have we seen this year?
Bitcoin kicked off the year at US$29,111. That means investors with nerves of steel who bought on 1 January and held on through the ups and downs would be sitting on virtual gains of 38% at today's Bitcoin price.
But spare a thought to crypto investors who bought in at the 16 April all-time high of US$64,829. They're still nursing a loss of some 38%.
Depending on your own personal risk profile, that level of volatility may or may not be acceptable.
Just remember, never invest more into cryptos than you can afford to lose.
