Recent BTC Price Changes
Posted Nov 23, 2020 09:32 AM
BTC price changes recentlyBitcoin (BTC) trading has been continuously becoming popular in recent days. Currently, many investors use Bitcoin as the trading currency over the web. However, Bitcoin trading has some significant differences compared to trading with other currencies. It is, therefore, important to understand the crucial factors responsible for Bitcoin price changes.
![[Image: 8dmYAGE.png]](https://i.imgur.com/8dmYAGE.png)
Like other cryptocurrencies, Bitcoin is a volatile digital currency. Its value keeps on changing. For instance, its price increased by 5119.31 USD from 1st October 2020 to 20th November 2020, equivalent to a 39.4% change. Unlike other currencies, the price of Bitcoin is not determined by a single entity. Instead, the price is primarily determined by supply and demand. When the demand for Bitcoin increases, its price goes high and vice versa. The demand for Bitcoin is governed by several factors that can be attributed to the recent price changes. They include:
- Media influence: Research has shown that media has the greatest influence on demand and hence, Bitcoin’s price. Media coverage to greater extents leads to more understanding of Bitcoin by the investors. Positive media coverage will lead to higher demand since many investors will begin to trade using Bitcoin, which will lead to a rise in Bitcoin’s price. In contrast, negative media coverage works in the opposite way. Hence, it is necessary to be up-to-date on the latest Bitcoin news so as not to miss future trends on the price of Bitcoin.
- Major political and economic events: Major political and economic events affect Bitcoin prices just as they affect other traditional currencies. However, the price of Bitcoin goes high because many people put their trust in cryptocurrencies when they lose confidence in the country’s economy. This can be attributed to the price changes observed when Britain decided to leave the European Union and when Donald Trump became the president of the United States of America.
- Regulation related to cryptocurrencies: Besides being a decentralized currency that is independent of influences from the central government, the latter can affect the prices of Bitcoin while regulating the price of fiat currencies through trading in the international markets. Similarly, regulations decided by the central governments directly affect the system because they apply to investors. Some government statements will induce fear in many investors, thereby lowering the demand and Bitcoin price.
- Cost of mining: Bitcoin is obtained through the process known as mining. Normally, the cost of mining keeps on changing with the changing technology and computing power. If the mining cost is low, many miners will have their Bitcoin and can offer it at lower prices. The cost of mining also increases if the cost of mining virtual currencies increases. If there is an increase in the cost of extracting virtual currencies increases, the Bitcoin supply will be low so that the price will increase.
- Changes in the Bitcoin community: Bitcoin community may lead to
Bitcoin price instability if they try to get unison for Bitcoin’s future in the long-term. Additionally, the community’s resolution may influence the Bitcoin digital ledger and the whole program collectively.
Due to Bitcoin’s novelty and volatility, price changes resulting from variations in the demand and supply are stronger. Many factors might cause these price changes, but the factors mentioned above play the most crucial role in the recent BTC price changes.
