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Bitcoin Price: What Does It Depend On?

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The cryptocurrency market is changing very fast. Different crypto assets are being introduced, and new advantages of the blockchain network are being discovered. It is indeed a very good time to be alive. Over a decade after introducing the cryptocurrency, tens of thousands of other coins have followed and have remained globally circulated. There is no better way to explain technological advancement than to point to digital currencies.

The introduction of Bitcoin Cash (BCH) in 2017 proved the growth of the blockchain network. This cryptocurrency was created to provide a more efficient way to use Bitcoin. While the former is preferred for spending, the latter can be used for investments. You can sell or buy Bitcoin Cash now as it is accepted by many traders globally.

As more platforms accept digital currencies and integrate digital payments, the value of Bitcoin Cash will continue to increase.

Bitcoin and Its Price Variations

Cryptocurrency prices are always unstable, and that’s what is meant when they are referred to as volatile. The changes in these prices are determined by major news and trader’s response to them. The Bitcoin price is not left out in this volatility. For over a decade, cryptocurrency traders have been encouraging other internet users to invest in Bitcoin.

Like the hard currency, it is not a surprise to see the value of a currency rise and drop from time to time. However, Bitcoin investors have also had to watch the Bitcoin price reach an all-time low and high. Despite being the oldest cryptocurrency, Bitcoin transactions took a very long time to complete.

The Bitcoin network was divided into two forks – Bitcoin and Bitcoin Cash to resolve the speed problem. People who wanted to use Bitcoin for fast transactions could buy Bitcoin Cash, while Bitcoin was left for those concerned about investments.

The first significant increase in the Bitcoin price was in 2011 when it moved from $1 to $32 in one quarter. By the end of that year, the price returned to $2. It continued climbing, and in April 2013, the coin was valued at $220. This price went further up to $1,156 in December, and at the beginning of 2015, it had returned to $315.

In 2017, Bitcoin was struggling to cross the $1,000 range. By December 2017, Bitcoin was valued at over $20,000, and the price has continued to change. At this point, the cryptocurrency market was beginning to expand, and it got the government’s notice.

To challenge the rise of Bitcoin, economists introduced new digital assets, and this crippled the price of Bitcoin. Bitcoin fell and struggled to rise above the $10,000 mark, but this time, it failed. By December 2019, the Bitcoin price was down to $7,112.

The pandemic in 2020 led to a rise in cryptocurrency prices, so it was not surprising when Bitcoin rose to $18,353 by November 2020. This period saw a bull run in the cryptocurrency market, which a few experts only predicted. Many cryptocurrencies crossed their all-time highs, and many people gained financial freedom.

By March 2021, Bitcoin reached an all-time high of $60,000, and in summer, the price crashed to $32,000. This was a good time for people to invest in Bitcoin or buy Bitcoin cash. In October 2021, the price of Bitcoin rose and hit a new all-time high of $66,974.77.

What Are Notable Factors Affecting Bitcoin’s Price?

Cryptocurrency prices are not controlled by the government or any other regulatory body; they are determined largely by the activities of traders and investors. However, certain factors have affected the price of Bitcoin since it was introduced, and some of these factors include;

  • Supply and demand for Bitcoin.
  • Government regulations concerning the sales of Bitcoin
  • Other cryptocurrencies in the market.
  • Distribution and mining of Bitcoin.
  • Exchange rate.

Future Bitcoin Price Predictions

There have been a lot of predictions from expert traders and economic analysts concerning the future price of this cryptocurrency. According to Forbes, a panel of experts has predicted that the price will hit $80,000 in 2021. By 2025, the price is expected to hit $250,000 and $5,000,000 by 2030.

The value of assets in the cryptocurrency market is constantly appreciating. If you start investing in Bitcoin now, you’re not late to the party. If you can take the risk, this cryptocurrency has proven to be worth the risk. The value of assets in the cryptocurrency market is constantly increasing. There is no better time to tap into the limitless possibilities of digital assets than now. Bitcoin is the future of money, and you must invest in that future by buying now.