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Bitcoins Price History

Bitcoins Price History

We may look at Bitcoin’s price history in three distinct ways. The pros and cons of both are present, but together they deliver a better picture.

 

  1. Technical Analysis (TA) – the purpose of technical analysis is to predict future market behavior by looking at the historical price and volume data.  
  2. Fundamental Analysis (FA) – It uses the data that represents the fundamental, intrinsic value of crypto. It mostly focused on external and internal factors to establish an asset’s actual value.
  3. Sentimental Analysis (SA) – By the use of market sentiment, it can predict price movements. Market sentiment refers to the attitude and feelings of an investor towards a specific asset.

 

 

Which factors influence Bitcoin trading now?

 

  1. Bitcoin regulation is today more common than it was at the beginning of bitcoins creation. As the government institutions come to understand crypto and its blockchain system their control and regulatory input gradually increases. Changes in the value of bitcoin are affected based on the banning and popularity of it in a country.
  2. The global economy has come to be a direct factor in bitcoins’ price and trading. Similar to gold, bitcoin has become a store of value. When other parts of the economy are not performing well, people buy these assets.
  3. Bitcoin’s price may rise due to increasingly widespread usage from big corporations. Companies such as PayPal, Square, Visa, and Mastercard have all shown their support for crypto, therefore, giving investors confidence to continue investing. 
  4. Increased speculation and derivatives like Bitcoin futures have increased market demand. Investors in the futures market short BTC for profit, putting downward pressure on the price. As a result, the value of Bitcoin is no longer entirely determined by its utility.

Closing thoughts:

 

There are various ways people have that explain bitcoin’s price history. However, over the years no matter which explanation we look at there has been a drastic rise in digital currencies. Even looking within cryptocurrencies, bitcoin shows a market value of just under 50 % as of August 2021, and its market capitalization stands at $710,000,000,000.

The reasons behind this exponential growth have to do with its fundamentals, market feeling, and economic events. The performance that we see in the past doesn’t necessarily let us predict its future. It helps us understand why bitcoin had such a high price but we can’t say where it will stand in the coming months or years. Analyzing the bigger picture bitcoin has been around for roughly 12 years however has grown pretty well for its age. 

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Bitcoins Price History

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