What are the basis for the rise and fall of Bitcoin?

08/17/2023 22:46 • Digital Disruptors • 61 views

What are the basis for the rise and fall of Bitcoin? Why does this phenomenon occur? There are several main points: 1. The continuous increase in market popularity; 2. The supply and demand of Bitcoin; 3. Gradual stabilization of investor sentiment; 4. The lack of significant fluctuations in Bitcoin prices over a period of time; 5. Volatility in the cryptocurrency market; 6. Recently, the price of Bitcoin has been hovering below $9,000 for the past day or two; 7. Currently, there is a strong speculative atmosphere in the market, leading to weak willingness to enter the market; 8. As time goes by, with mainstream countries becoming increasingly cautious towards virtual assets, some traders have started selling Bitcoin while others have turned to short positions; 9. BTC/USDT has a 24-hour decline of 0.2%; 10. Some exchanges have experienced short-term liquidation or withdrawal situations.

What are the basis for the rise and fall of Bitcoin?

In the past year, the price of Bitcoin has been oscillating within a range. In this state, what factors have driven this wave of increase? And what results will it produce?

Let’s talk about this question today! What is the basis for the rise and fall? Why should we hold or not sell?

Technically speaking, the current blockchain technology still cannot meet the needs of investors, but it provides a method to solve the problems existing in the current industry and help investors manage risks. Therefore, we can have a good concept to explain “rise” and “fall” – whether the market provides services for speculative traders or how people make money and profit by buying and selling digital currencies. If a project can attract more capital into this field, its value will rise to another level.

However, these data are not enough to support the future trend of the market and the price trend of the entire cryptocurrency. Therefore, based on historical experience and some analysis, any asset has great growth potential (such as gold) and significant volatility (especially when the US dollar depreciates).

So here comes the question: which indicators can determine the price trend? Why does Bitcoin always have such high increases? The answer is that the price drops due to various reasons, as they did not buy or sell in time. In addition, there are many other reasons that cause prices to skyrocket. For example, on May 11, 2018, the largest stock exchange in the United States, the Chicago Mercantile Exchange (CME), launched Bitcoin futures contracts, allowing investors to purchase positions in this product. At the same time, many companies have started developing investment strategies based on this product in order to provide accurate market performance and market judgments.

Of course, another viewpoint is also raised here:

1. Institutional investors need to pay attention to the liquidity of Bitcoin.

2. Changes in institutional holdings.

3. Investors may store their balances in their own wallets.

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What are the basis for the rise and fall of Bitcoin?

What are the basis for the rise and fall of Bitcoin?

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