Bitcoin has one of the most turbulent trading histories among asset classes. The value of a single Bitcoin increased significantly for the first time in the cryptocurrency's history in 2010, rising from a little fraction of a penny to $0.09.
Since it became accessible, the cryptocurrency has had numerous rallies and falls. This article explains Bitcoin's volatility and outlines some of the factors that influence its price movement.
KEY TAKEAWAYS
Bitcoin's trading history has been erratic and unpredictable ever since it was first introduced.
Bitcoin is a class of assets that is still developing, just like the variables that affect its price.
Bitcoin was created to be used as money in everyday exchanges.
Investors have used Bitcoin to hold wealth, protect against inflation, and hedging against market instability even if it is still a cryptocurrency.
Even though Bitcoin is still a cryptocurrency, investors have utilized it to preserve wealth, hedge against market volatility, and safeguard against inflation.
Bitcoin's Price Timeline
Investor elation and discontentment with Bitcoin's promise are reflected in price swings. The unknown creator(s) of Bitcoin created it with everyday transactions in mind.
As a medium of exchange, cryptocurrencies acquired popularity with the general public. Additionally, it drew traders who started to wager against its price changes. Bitcoin became popular among investors as a means of wealth creation, value storage, and inflation insurance. Institutions have been developing Bitcoin investment products.
The main causes of Bitcoin price variations are bets made by traders and investors that anticipate financial gain from an ever-increasing price. But the pricing narrative for Bitcoin has once more changed. In January 2022, Bitcoin's momentum started to wane.
Bitcoin and other cryptocurrencies' prices are influenced by perceived value, supply, and demand, much like other currencies, goods, or services in a given economy.
People will acquire Bitcoin if they think it is worth a certain amount, especially if they feel its value will rise. Only 21 million Bitcoins will ever be produced by design.
As long as demand stays the same or rises, the closer Bitcoin comes to its limit, the more expensive it will become.
As long as Bitcoin's popularity continues to increase and its supply cannot keep up with demand, its price should rise. In contrast, there will be more supply than demand if popularity declines and demand declines. The price of Bitcoin should thereafter decrease unless it continues to hold its worth for other reasons.
Do you think Bitcoin's price can surpass 100,000 US dollars in 2023?
Yes.
No.