The cost of Bitcoin is determined by the demand and supply of online platforms connecting sellers and buyers daily. Based on the country in which the various platforms are located and the currency of exchange, quotes are available in Euro or Dollar, Yen or other currencies.
Bitcoin Price Evolution
The Bitcoin price has been volatile since its introduction. But why such volatility?
Bitcoin Price The Impacting Factors
A variety of factors affect the cost of Bitcoin in the short- as well as long-term.
- In the short run, either good or bad market news tends to cause the price to go up or down. For instance, the announcements of restrictions related to COVID-19 in 2020 resulted in the price falling by 50% within a couple of days. In the same way, when markets are soaring, there’s usually an effect of ripples that sees investors all following the market’s movements and intensifying it in particular based on technical analysis.
- In the longer term, the rules and regulations, as well as the mass acceptance of cryptocurrency by an ever-considerable number of institutions, influence the price. Keep at heart that the volume of Bitcoins created is finite and halved each year, decreasing supply and increasing price pressure.
The price of Bitcoin is significantly more volatile than traditional assets. It’s not unusual to witness greater than 10 percent fluctuation in just a day, which makes it valuable as an investment instrument and carries higher risk.
The cryptocurrency market isn’t yet as large as traditional stock markets. It was valued at a trillion dollars at the beginning of 2021. It may sound huge; however, it’s not an insignificant drop in the ocean in the financial market industry.
Thus, it requires less capital to alter the price of cryptocurrency significantly. The market is in a growth phase. The gradual growth in capitalization due to the arrival of new participants, especially institutions, will help make the market less susceptible to extreme levels of volatility. Lets know here about Bit Index AI.
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Bitcoin The Evolution Of The Currency And Highlights
In the long history of Bitcoin, the most well-known cryptocurrency around the globe, some significant dates and events must be recalled to better comprehend the fundamentals of this digital currency. The Bitcoin price was valued as early as 2011- about two years after its inception. To be clear, on the many charts from the past, the price of Bitcoin can be stated in the yuan (Chinese money) as well as in the dollars (Japanese currency), Asians being indeed the largest consumers of cryptocurrency all over the world and of Bitcoin specifically. But, most current prices are listed in euros or dollars for more clarity.
The year 2012 was the year that the cost of Bitcoin was just several euros, and it was the year 2013 when its price skyrocketed, reaching 2014’s symbolic amount of 1000 dollars (for one Bitcoin). Many companies and organizations are now taking Bitcoin as a fully-fledged payment method. Before this, Bitcoin had to be traded on specific trading platforms to make an electronic transfer of funds to the currency of the country where the account of the beneficiary was located. While this isn’t an issue, this development is a sign of the growing credibility of cryptocurrency globally, the symbol of which was and is the case with Bitcoin.
In 2017 the bullish trend of Bitcoin hit a major mark: 1 Bitcoin valued at 17,000 euros. This is due primarily to the cryptocurrency’s fundraising and the passion of different media, both specialist and all-encompassing, for the new digital value. The revolution that is taking place in the world of finance that is well going is now reaching dramatic highs and is revealing new benchmarks and models that have never been previously seen. The end of 2017 saw the introduction of new products in finance, like futures contracts, come onto the Bitcoin and cryptocurrency markets. Speculation is currently in full swing. However, it’s currently possible to make bets on cryptocurrencies.
The year 2018 witnessed a drastic drop in the Bitcoin price. Then, it decreases to 2,800 euros. It was actually all cryptocurrencies that experienced a stunning decline in the year. But, this drop must be considered in the context of. Even if Bitcoin has lost more than 80 percent of its value compared to its highest price, it is still 2.5 times more than it gained a year ago. From the beginning of 2020 in 2020, the Bitcoin price will be back at 6000 euros.
In 2020, investors and financial professionals worldwide sought alternative options to diversify their portfolios. Even though Bitcoin’s price has significantly decreased, it has earned and established credibility. Numerous characteristics safeguard cryptocurrency, and its use in everyday life has become significantly more democratic. It is far from being lost. Business is returning to Bitcoin and, in 2021, will be at its highest point up to 500.000 euros.
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About Kriptomat
Founded in 2018, Kriptomat revolutionized the cryptocurrency world by introducing the simplest platform in Europe. Kriptomat makes digital finance so simple that everybody can access the freedom, fairness, and fulfillment that crypto represents. Hundreds of thousands of customers across Europe and in 120 countries worldwide trust Kriptomat when they buy, sell, swap, earn, share, and invest in crypto.
