Bitcoin has a highly volatile price chart. Bitcoin, which is now in an upward trend in general, also experiences very sharp decreases from time to time. So how is Bitcoin price determined? Why is it falling or rising?
Cryptocurrencies, which are among the most discussed investment tools of recent years, are the largest crypto currency (Bitcoin).BTC) started to take place on the agenda again as it entered an upward trend. Bitcoin, which started 2023 at the level of $ 16,500, gained more than 60 percent in a few months and 27 thousand dollars reached levels. As such, one of the most profitable investment tools of 2023 was Bitcoin.
So BTC, how is it like this? at high rates Can you experience price changes? In this content, bitcoin price Let’s take a closer look at the factors that affect it. If you already have a Bitcoin investment or are considering investing in Bitcoin, consider the points in this article and make your own purchases and sales. your strategy you can create.
Factors affecting bitcoin price
- Supply demand balance
- Mining
- Security issues and regulations
- media influence
- Economic and geopolitical developments
These are the most important issues that determine the price of Bitcoin. Of course some exceptions may occur and the BTC price may suddenly enter an uptrend or downtrend unexpectedly.
Supply demand balance
Just as we talk about the supply-demand balance in investment instruments such as gold, silver or stocks, the same is true for BTC. valid. Because the issue of supply and demand is the number one issue that creates the market. The fact that Bitcoin is not a physical commodity is due to the supply-demand balance of this cryptocurrency. will not be affected can make you think. However, this is not the right approach.
Total supply of Bitcoin 21 million customary. When Bitcoin was launched, a very large part of it was encrypted. The passwords, which were solved by mining, have enabled over 18 million Bitcoins to be released to date. The remaining few million units will be launched around 2140. If the demand for Bitcoin increases constantly when those years come, the price of Bitcoin, which we express as thousands of dollars today, will be millions, maybe millions in those days. billions of dollars levels will be reached.
Mining
As we have just mentioned; Bitcoin is not a coin printed by any central bank. Satoshi NakamotoWith Bitcoin’s algorithm, 21 million Bitcoins were printed that day. However, these are encrypted and special devices are required to decrypt them. Here are the people who buy these devices. miner it’s called.
Bitcoin miners use mining devices to make a profit, and their costs there is. Since the gain of a single device is not enough, factory-sized facilities are established. Of course they have costs. The higher the miner’s cost, the higher the asking price for BTC. This situation changes the Bitcoin price. directly affects.
Security issues and regulations
Crypto assets, generally on decentralization they were built. And quite new technologies. As such, the trust in cryptocurrencies is not very high. Moreover, the crypto money scams we encounter from time to time are also to breach of trust can cause. This is where regulations come into play.
The world’s largest cryptocurrency exchange Binanceis one of the leading institutions in the crypto money community that want regulation. Because, according to Binance, the only thing that can be done to protect both the future of the industry and the investor is regulation. Let me also point out; almost every country is actively working on cryptocurrency regulations. As these regulations become more widespread, confidence will increase. It won’t surprise anyone if this has a positive impact on the Bitcoin price.
media influence
bitcoin price whenever it enters an uptrend, it starts to be talked about on news channels. Particularly with the sharp rises in bull times… This allows more people to know about Bitcoin and other crypto assets. As such, people invest their money in cryptocurrencies. Well demand increases. An increase in demand has a positive effect on prices.
However, the opposite can also happen. cryptocurrencies, traditional financial system They exist to replace them, and for this to happen one day is not something some people want. Again, the media card is played and related to Bitcoin and other crypto assets. negative news starts pumping. Sales go up and prices go down.
Economic and geopolitical developments
Turkey is one of the countries with the most cryptocurrency investments in Europe. comes first. Have you ever thought about why? Yes, some of us are indeed investing in Bitcoin and other cryptocurrencies to make more profits. However, the main reason why many people rely on cryptocurrencies is the depreciation of the TL, namely not be affected by inflation.
Do not think about this only in Türkiye. If the crisis broke out in the USA, the number one economy in the world, the dollar would be very serious. depreciation it is lived. Russia’s currency, which has been at war with Ukraine for more than a year, is invalidated by other countries, tying Russia’s hands. Bitcoin, which is not tied to any person, institution or country, continues to exist even if the apocalypse breaks out. Such possibilities make Bitcoin the number one currency of the future can become…
How has the Bitcoin price changed over the years?
Above, you can see how the Bitcoin price has changed over the years. Only when BTC first went on sale 0.003 dollars could be bought for it. Bitcoin, which was quite worthless in the early stage compared to now, reached the level of $ 1 for the first time in 2011. 10 years later, that is, in 2021, we talked about the level of 40 thousand dollars, Bitcoin, which is the highest level of all time in the following periods of the year. 69 thousand dollars he saw.
After the peak, a major downtrend started in Bitcoin. This decline was so deep that Bitcoin will be released in January 2023. 16 thousand dollars decreased to levels. Of course, this process did not happen on its own. While crypto currency frauds increased, the bankruptcy of some exchanges put the sector in trouble. However, despite everything, the $ 16 thousand level was a bottom level for BTC and the king of the crypto money world is now again. rise trend is showing. The question is how long this rise will last.
NOTE: This content should not be considered as investment advice. Cryptocurrency investments are riskier than any other investment. Therefore, before you decide to invest, you should evaluate all the risks and shape the steps you will take accordingly.
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