Bitcoin Price on the Rise: Why?

The reason is that Bitcoin price rise in the past because of its limited supply. Only a max of 21 million Bitcoin will ever exist, adding to the scarcity and therefore demand. Another factor behind bitcoin price exceeding $10k is that it is now becoming a mainstream technology, use as investment and payment option.

Historical Bitcoin Prices has been impacted by numerous factors like supply and demand, sentiment of investors (investor’s in general pull out to FIAT when they feel uncertain), geopolitical events(Silkroad Plaza price plummeted mainly because Silk Road was closed down with crypto being the only currency available on this darknet site for illegal activities) or regulatory changes etc…

Supply and Demand

The power of supply and demand in effect on the price of Bitcoin In a world where there are only 21 million coins and demand is growing, prices go up if more people want to buy Bitcoin than sell it.

Institutional Adoption

Bitcoin can increase in price as it becomes more common among institutional investors and financial institutions. The statement also has a function of generating trust and bringing more amateur investors to the market, because when big companies or institutional funds come out on their own announcing that they are involving in Bitcoin it comes something similar.

Market Speculation

Market speculation similarly drives Bitcoin price. Bitcoin and the cryptocurrency market is volatile and therefore allow for sudden price increases or decreases to happen. Short-term price increases can also be caused by speculators and traders who are expecting a transit to take place only fare long term.

1- Economic and Geopolitical Factors

The price of Bitcoin is influenced by economic and geopolitical events. In a nutshell, volatile markets and global events lead to more investments in Bitcoin like an alternative investment which increases its price.

Media Attention

The more good things the media say about Bitcoin, and the greater people learn, you already know. More mining! Its also possible that media attention can push more demand and create an apparent “buzz” around Bitcoin, which may prompt the prices to start increasing.

Halving Events

One of the built-in mechanisms in Bitcoin known as “halving” which happens about every 4 year. One other key component in a halving event is the rate of new Bitcoins created in per block time is now 1/2 as it was before. This scarcity has historically driven prices up especially as demand continues to rise.

Technological Advancements

Positive developments in Bitcoin-related technologies, which lead to improvements in scalability and security or usability can result in the sentiment hitting a high note influencing more players of the market attracting them thus affecting price.

the volatile and fluctuating nature of Bitcoin`s price historically, There are many factors, often complex and hard to predict in what will affect the price of this cryptocurrency.

More Resources on Bitcoin and Other Cryptocurrencies

Bitcoin, and other cryptocurrencies, are digital or virtual currencies that works as transfer money on the internet where encryption techniques have been used to regulate generation of currency units but also verify peration. These do not depend on any central bank and work through decentralized blockchain technology.

If you would like more resources to learn about Bitcoin and other cryptocurrencies, check out the following:

Bitcoin. org: The homepage for the currency, of course link to their knowledgebase and handle currency variances etc.

Exchanges: Platforms where you can Buy, Sell and Exchange cryptocurrencies like Coinbase, Binance.kraken etc. They also provide you with educational content and crypto market roundups.

Take Online Courses: There are numerous online courses that can help you learn more about Bitcoin and other cryptocurrencies. Both Udemy and Coursera are ride platforms providing training on blockchain technology, cryptocurrencies or related themes.

The world of Bitcoin, cryptocurrencies forums and communities – You can join online forums like reddit r/Bitcoin or r/Crypto Currency where you will be able to learn but also interact with other members.

There are multiple books written about cryptocurrencies and blockchain technology. Some of the popular books are “The Bitcoin Standard” by Saifedean Ammous, Daniel Drescher’s “Blockchain basics,” or Andreas Antonopoulos’ Mastering Bitcoin.

Also Read : How To Exchange Cryptocurrency For Cash For Your Vacation