The price of Bitcoin jumped over $40,000 this week, the highest it’s been since June 16.
Fresh comments from Tesla CEO Elon Musk also coincided with a brief rise in value for Bitcoin and Ethereum before Bitcoin’s run up to $40,000 over the weekend.
Even though Bitcoin crossed the $40,000 threshold, it was a pretty normal swing for the crypto, which has also seen a more than 50% decrease in value in past months.
The cryptocurrency space is still very new, and everything from innovation to regulation can have outsize impact for investors.
Cryptocurrency is a highly volatile, speculative investment.
Volatility can be attributed to an “immature market,” says Ollie Leech, learn editor at Coindesk, a cryptocurrency news outlet.
But if you’ve invested with a buy-and-hold strategy, dips are nothing to panic about, says Humphrey Yang the personal finance expert behind Humphrey Talks.
This is the traditional “set it and forget it” advice that many traditional long-term investors follow.
Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors.