What determines the price of bitcoin?

Bitcoin is the most popular cryptocurrency in the world, invented by Satoshi Nakamoto. It was launched in 2009 and began to gradually develop in the electronic money and financial market. To understand what the Bitcoin exchange rate depends on, you don’t need to go deep into the topic. This kriptovalyuta changes its price for the same reasons as ordinary money currencies, with rare exceptions.

What determines the price of bitcoin?

The rate of cryptocurrency depends on demand. The more people ready buy bitcoin, the higher its price is set. Growth can continue until the activity of depositors decreases. As soon as this happens, the rate begins to fall. Cryptocurrency owners tend to sell the asset as soon as possible so as not to end up in the red.

However, the total capitalization of bitcoin is not significant, so any major player or artificially created hype can affect its rate. If a market participant has a large number of bitcoins in his hands, he can easily collapse or raise the rate. This is done due to the fact that newcomers to the system do not yet fully understand the essence of the processes and are confused when prices fluctuate. Experienced participants play exactly on this.

The bitcoin rate can collapse at any moment, professional brokers and traders can predict this event and carry out certain manipulations that will be financially beneficial for them personally. The main thing is not to feel fear when making quick decisions and quickly respond to changes.

What else affects the price of bitcoin? Appearance on the market of pampers. These are people who have huge financial assets and are ready to invest large sums in the purchase of cryptocurrency. They do it quickly and without delay. As a result, the bitcoin rate begins to rise sharply to the maximum possible indicators. Other players notice these changes and in a panic buy up bitcoins in order to sell them at a higher price later. As soon as the value of the cryptocurrency reaches an impressive level, pumpers begin to dump (that is, depreciate) and sell their assets. This leads to the maximum depreciation.

Advertising and media

In addition to artificial financial leverage, the cost of bitcoin today is formed by advertising on the network and in the media. As a rule, good or bad news on these sites are distributed by large players of the electronic currency exchange (the same pampers), and for the most part they are not true.

The logic of these manipulations is simple - the more people learn about the charms of bitcoin, the more players will appear on the market. And, these are additional financial injections that other large and experienced participants can earn.

The interest generated by the media and advertising publications on the network contributes to the growth of the bitcoin rate.

Terms characterizing changes in the rate of cryptocurrency:

• Correction - when the bitcoin exchange rate enters a smooth wave of development after a strong fall or rise in price.
• Drop - when players sell their own assets and the rate indicators decrease by a maximum of 7%.
• Discharge is a situation in which the bitcoin rate can fall by 15%. The reason for the fall may be the spread of bad news about Bitcoin, the ban on the use of this currency in a particular country, and the panic that has arisen in the ranks of cryptocurrency market participants.
• Rise - there is a rise in the price of the currency due to the above factors; large traders enter the market.
• Bottom - this is the maximum point of the fall of the rate, which is never constant (having understood the level of the fall of the rate, you can easily create trading strategies.

How can you predict changes in the price of bitcoin?

It is quite difficult to do this without having large financial assets behind you. It is necessary to take into account many factors of cryptocurrency price changes, immerse yourself in the process as much as possible, analyze the available information, study the latest news on the topic, assess the dynamics of the rate change and respond as quickly as possible to emerging unrest.

Experienced traders can quickly figure out when there will be a drain, correction or rise. Therefore, if a player is inexperienced and does not have a lot of money, he will practically not be able to predict course changes. A variant with luck is possible when a person successfully reacted to fluctuations and made a deal, although he is a beginner and does not understand much.

Instead of the total

Thus, we can say that bitcoin since its inception began to spread rapidly on the Internet. Today it is one of the most popular cryptocurrencies in the world. It can be easily manipulated, since the volume of capital investment is still insignificant. Experienced and wealthy traders skillfully change the dynamics of the growth and fall of the bitcoin rate. In order for a beginner to make money on this, he needs to “shovel” tons of material, study all processes and terms as much as possible, and also be extremely concentrated during trading.

The high-profile news from the Internet and the media, the emergence of bans from the authorities and the entry of large players into the market actively influence the bitcoin rate.

Best regards, Money Hunters.