NIGERIA BITCOIN COMMUNITY

Is the Bitcoin Market Bouncing Back? – The Volatility of Bitcoin Price

For years, Bitcoin has retained its position as the largest and most successful cryptocurrency.

While this claim is valid even today, no one knows what direction Bitcoin prices may take in the future.

The only thing experts can do now is to analyze the data on past performance and use it to predict future trends.

Unfortunately, the task isn’t going to be easy.

Things aren’t as straightforward as they sound on the surface.

That’s because Bitcoin price variations depend on many complex factors.

Therefore, we can’t base our arguments entirely on the available data.

Instead, we will integrate real-time information to give a clear picture of Bitcoin’s current market position. 

How Bitcoin Prices Have Performed Since 2009 to Date

Bitcoin Price

Even though the journey experienced several ups and downs, Bitcoin has always remained the most valuable cryptocurrency.

But its initial prices may make you go crazy, especially if you compare them with what the market shows today.

For example, one Bitcoin went for only 400 US dollars in the early days.

Like any other crypto, the law of demand and supply influences Bitcoin prices significantly.

And this greatly contributed to the low initial values.

This happened because many people still didn’t know anything about cryptocurrency.

And for the few who did, the information wasn’t significant enough to compel them to buy Bitcoin.

Negative speculation is another primary factor to blame for Bitcoin’s initial poor performance.

Of course, you definitely can’t blame anyone for negatively thinking about Bitcoin technology.

By the way, who wouldn’t raise the alarm for something that experienced frequent theft cases?

No one because most dedicated investors are always cautious.

On average, Bitcoin has constantly appreciated value from the first time Satoshi introduced the concept to the public.

The most recent highest mark Bitcoin price reached was above 60k dollars
per coin in November 2021.

This phenomenon made some analysts project a minimum cost of 100k dollars in late 2022 and beyond.

But Are Bitcoin Prices Stable Now?

Anyone who profoundly understands the cryptocurrency market will quickly tell you that Bitcoin prices are currently unstable.

And don’t let the stability we’re talking about here confuse you.

BTC attaining nearly constant and predictable values doesn’t mean the price is no longer volatile.

Instead, we refer to the Bitcoin price relative to the current one within a given period.

Don’t forget the value of all cryptocurrencies is highly volatile and will remain so even in the foreseeable future. 

Bitcoin market prices have sunk drastically since January 2022.

And this was after hitting new heights late last year.

The trend persisted until mid-June this year when Bitcoin began rising
again.

During this time, investors generated a lot of revenue from renowned cryptocurrency exchanges like https://bitcoin-storm.live.

However, experts argue BTC market price could drop below 20k dollars quickly.

They cite the Fed’s actions like increased rates and failure to control
inflation as the two potential causes. 

Another group of financial market analysts believes that Bitcoin prices should play above the 23k dollar mark for the cryptocurrency to perform well.

They warn that the prices might fall further if the cryptocurrency doesn’t meet this condition.

Among the key reasons causing the current fluctuations is the suspected insolvency of some significant crypto industry companies, such as Celsius.

Bottom Line!

There’s no doubt Bitcoin is still the leading cryptocurrency today.

With improvement projects such as the Taproot Upgrade, Bitcoin will rival Ethereum as the ultimate choice for developing smart contracts and blockchain applications. 

Bitcoin prices have been rising lately after a sharp drop in mid-2022.

Experts predict that the trend might persist if the prices stay above the 23k dollar mark.

Some factors making cryptocurrency prices fluctuate include the Fed rates, inflation, and anticipation of massive insolvency in the sector.

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