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What Causes Bitcoin Prices to Go Up

by Josh Pit
Bitcoin Prices

Before you invest your money in cryptocurrencies, you have to know how they work. Of course, the first thought in anyone’s head when they are considering investing in cryptocurrencies is bitcoin. Bitcoin is the biggest cryptocurrency out there and one with the highest returns possible. While you have to be careful while trading this digital coin because of its high value and volatility, you should also find ways to learn more about it so you can trade it more than any other cryptocurrency out there Xtrgatereview

There should be no doubt in your mind that it is currently the strongest cryptocurrency you can get your hands on and one that is expected to not disappear in the future either.

What Makes Bitcoin Go High and Low in Value  

There are many factors that can affect the value of Bitcoin. You have to keep your eyes on everything because the cryptocurrency market is new and you might have to figure out ways to know more about bitcoin and its moving value. You will not find information about cryptocurrencies as easily as you can find information about forex currency pairs or the biggest stocks on the market. So, take a look at these factors that affect the price of bitcoin.

· Popularity of Competitor Coins

One of the important factors that new traders and investors often overlook is the popularity of other cryptocurrencies on the market. You have hundreds and thousands of cryptocurrencies in the market today. How popular they are has a direct impact on the popularity of bitcoin. And when the popularity of bitcoin is affected, its price experiences fluctuations as well. You have more and more cryptocurrencies coming into the market almost every other day. As you must have noticed, each cryptocurrency provides a solution to an existent problem in the current financial system around the world.

You can take the example of Ethereum here. However, one has to agree that Ethereum is more like a solution to the many problems of the blockchain and cryptocurrency world than it is of a current financial system. Bitcoin is only a cryptocurrency that you can exchange with people to exchange value just like you give and take any other currency. The only thing is that its centralized nature protects you from losing money because of one controlling body, and lets you complete transactions while paying a very small fee. On the other hand, Ethereum goes a step ahead and serves as a platform on which many other cryptocurrencies and blockchain applications can be created.

If Ethereum starts to pick up on its popularity some day, you can expect the price of bitcoin to experience some impact. It is likely to go up. However, you can also see both currencies rising in value if the popularity of one is causing the entire cryptocurrency industry to be considered stronger and more reliable.

· Coming of Famous Investors

The more big investors come and invest in bitcoin, the more the value of this digital asset is expected to go up. You have to realize that because the cryptocurrency market is still new, many people are skeptical about putting their money in it. They have money to spare but they do not just want to waste it. They are always looking for reasons to find faith in the cryptocurrency industry and that’s where new investors prove to be a great strength for them. If the new investors in bitcoin are people with impressive backgrounds and known investment portfolios, the confidence sees a huge increase and the market rises in value.

You already have famous names such as Michael Novogratz, Blythe Masters, and Barry Silbert, who have already invested big time in Bitcoin. The emergence of more such investors can always give a raise to the value of bitcoin.

· Emergence of New Believers

There is a huge difference between someone who invests in bitcoin and someone who believes in the blockchain technology. Just because someone believes in the blockchain technology does not mean they will invest in Bitcoin. That’s where you have to separate bitcoin investors from those who want to invest in this market in a different way. Take the example of Facebook. The company has jumped in the cryptocurrency market and announced to introduce its own cryptocurrency with the name of Libra. When people see such huge giants coming into the cryptocurrency market, they are bound to build faith in this industry.

Those who have been thinking about investing in bitcoin for a long time but have stayed back because of their skeptics can always find a strong reason to invest in this cryptocurrency when they see other large companies of the world coming into this industry.

· Regulations from Authorities

The one thing that can always catch crypto investors off-guard is the crackdown from financial authorities in different countries. One must not forget that many large economies of the world have not been as welcoming of bitcoin as they should have been. At the same time, the non-regulation of the industry has made many financial authorities come into action. Take the example of SEC, which has cracked down on a dozen of new cryptocurrency projects in the past few years. While regulations are a huge help for people who want to invest in this industry, they also prove to be the factors that cause a decline in the value of various cryptocurrencies.

People think that financial authorities along with governments will crack down on the blockchain as a whole and cause it to lose its decentralized nature. The regulations that these bodies introduce give people the impression that their beloved technology and cryptocurrencies are not as safe and anonymous as they had thought they would be.

Final Thoughts

When you sign up with an online broker, you have to make sure that you take advantage of the many tools that you are given on your trading platform. These tools help you with trading in many ways, one of which is providing you with latest updates from the cryptocurrency markets. The more you know about the latest happenings, the more safely you can invest in bitcoin and any other cryptocurrency for that matter.

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