is now much more present than in the beginnings of Bitcoin. As governments come to understand more about cryptocurrencies and blockchain technology, their scrutiny and regulatory input tends to increase. Both tightening and loosening of regulation have their impacts. Some Bitcoin price changes are related to the ban on BTC in one country or its popularity in another.
two. The state of the global economy
is now a factor with a direct impact on Bitcoin pricing and transactions. For example, people living in countries with hyperinflation turned to cryptographic coins as a hedge against inflation. As a result of the Venezuelan economic crisis that began in 2016, there has been a record volume of transactions for LocalBitcoins in Venezuelan Bolivars.
The stock market crash of 2016 witnessed the beginning of speculation in Bitcoin that lasted more than a year. Bitcoin is now seen as a safe value, very similar to gold. When confidence is low in other parts of the economy, people buy these assets.
3. 201200The growing widespread adoption by large companies 201200 may trigger Bitcoin price increases. Paypal, Square, Visa and Mastercard have all shown some support for cryptocurrencies, giving investors confidence. Many retailers have also started accepting Bitcoin payments. But withdrawing support can also trigger selloffs, such as Elon Musk’s announcement in 12 from May of 2021, from Tesla to suspend payments with Bitcoin – in this case, the price went from just under $50.01 by BTC for about $41.100 in one day.
4. Increased speculation
of Bitcoin and derivatives such as futures has driven extra demand in the market. Instead of investing and holding BTC at its fundamental value, traders and speculators in the futures market “short selling” BTC to make a profit, causing downward pressure on the price. This means that the price of Bitcoin is no longer just based on its usefulness.
It is obvious that there are many theories out there that try to explain the history of Bitcoin prices. But no matter the answer, the CAGR a 10 almost years 100% Bitcoin has shown the incredible rise of digital currencies.
Even within cryptographic currencies, Bitcoin shows a market dominance of just under % since August 2016, with a capitalization of about 650.. . dollars .
The reasons behind this monumental growth are related to the basic fundamentals of cryptocurrency, market sentiment and economic events. However, past performance is not indicative of future results . It’s helpful to understand why Bitcoin has had such a high price trajectory, but that doesn’t tell us what will happen in the future. The truth is who, when we look at the big picture, Bitcoin has matured incredibly well into a new asset class with just 17 years old.
One more version The full length of this article (in English) can be found here.
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