The Bitcoin price is constantly changing and so too the Bitcoin news, but what drives its value? Bitcoin’s free-market price can be influenced by a number of factors including user confidence in individual exchanges or the currency itself. The Bitcoin news has been abuzz lately with large fluctuations in price – if you are holding Bitcoin this no doubt got your attention, particularly when the Bitcoin news delivered not only at highs but also lows.
For example, on November 17th, 2013 Bitcoin reached an all-time high priced at $702 per coin before dramatically falling to under $400 shortly after. It seemed that the majority of traders were unconcerned, however – it quickly bounced back to over $700 again! Just two days later there was again huge concern as BTC prices dropped down to under $500. Bitcoin recovered once more, but if Bitcoin users are worried about Bitcoin price fluctuations they may be holding off trading Bitcoin. If you want some authentic strategies for investing in bitcoin, then Bitcoin Up can be a perfect guide for you.
Before Bitcoin’s value was largely influenced by Bitcoin enthusiasts who understood the Bitcoin value and risks associated with the currency, now it seems that there is a new market emerging – Bitcoin traders. These individuals aim to make money from Bitcoin price fluctuations or even ‘shorting’ Bitcoin prices by selling BTC in anticipation of its dropping value before buying them back at an overall lower rate. This system proves highly beneficial for investors but can threaten Bitcoin confidence in general, particularly when large movements happen on low volume (a lack of buyers).
It appears that not only does Bitcoin benefit from positive attention but receives additional support during times of Bitcoin crisis. Bitcoin users who are not looking to trade Bitcoin but instead use Bitcoin for transactions could be discouraged when there is a lack of Bitcoin activity or value fluctuations which put them off using BTC in the future. At this time Bitcoin has received positive attention in the news due to the release of Bitcoin Black Friday, an online shopping event that encourages Bitcoin users and enthusiasts to shop with Bitcoin at their favorite retailers.
This isn’t to say that there aren’t large fluctuations in the price of gold, oil, or other precious metals – it simply means that Bitcoin makes headlines more regularly than most other currencies! If you would like additional information on Bitcoin news why not subscribe to one of our free newsletters? We can send you weekly updates on what is happening in Bitcoin land. Bitcoin is no longer just a Bitcoin blog, but an all Bitcoin news Bitcoin magazine!
Bitcoin Volatile Nature
Bitcoin, a cryptocurrency and worldwide payment system, is known for its volatility. The value of Bitcoin has seen a lot of fluctuations in its price since it was first created in 2009. Bitcoin’s price is often determined by the level of confidence people have in it. Bitcoin is a very new technology that has not been fully tested and Bitcoin’s volatility makes it difficult to adopt for widespread use. Bitcoin is a fiat currency, meaning its value comes from government regulation or law. Bitcoin does have a limited supply of 21 million, which can lead to deflation as Bitcoin becomes more valuable as the demand increases.
Bitcoin was first traded as early as 2010 as one Bitcoin (BTC) could be bought for $0.003 however; by December 2013 the price had increased to around $1250 per BTC. Since then Bitcoin’s price has fallen and fluctuated, after hitting lows of £4 in 2017 Bitcoin started 2018 with values at over £11000 and reached an all-time high on 16 January 2018 when it reached £15702. Bitcoin’s value is widely known to be determined by consumer confidence and media hype and Bitcoin has been affected by the press before, Bitcoin experienced a surge in popularity after several major websites started accepting Bitcoin as a form of payment.
Bitcoin then fell rapidly when China banned Bitcoin exchanges. Bitcoin also greatly suffered following the closure of Mt Gox which was one of the most popular Bitcoin exchanges that subsequently went bankrupt due to cyber attacks. A great amount of Bitcoin was stolen as people who had entrusted their Bitcoins with the exchange lost out as they could not get it back due to its bankruptcy.
A number of factors can affect Bitcoin’s volatility; we’ve highlighted some below:
– News: If there is negative news about Bitcoin and cryptocurrencies this usually