Research shows that as many as 80% of crypto users, which are around 10 million, are trading with Bitcoin (BTC). The main reason why they use Bitcoins is because it is extremely valuable and there are many companies around the world that accept it as a payment method.
Bitcoin Basics
As of March 2023, Bitcoin’s value is around $22,000, which is the best it has been in several months. And if that is not enough, experts believe that it can go as high as $70,000 as soon as 2024.
There is one question that comes out by looking at these numbers – why does Bitcoin’s price rise so much and fluctuate so greatly day to day? That is the topic that we wanted to discuss as we are going to name the main factors that cause these surges and crypto dips. But first, let’s see where can you trade Bitcoins online.
Where Can You Trade Bitcoin?
A few years ago, the most popular marketplace for trading Bitcoins was a Bitcoin ATM. But, these machines were subject to a lot of criticism because they charged enormously high fees. The good news is that all of that has changed now in part thanks to Bitcoin being valued much higher.
The main solution alternative goes by the name trading sites and as the name suggests, they operate on the Internet. Hence, they can be accessed at any time and place. Furthermore, since they utilize the latest HTML5 technology, they are fully optimized for mobile use, meaning that you can trade on any device and at any time.
Their fees are substantially lower than the ones of Bitcoin ATMs and they offer far more services. Let’s take a look at Bitcoin Profit, one of the most reputable trading sites, as an example. After you have registered on their platform, you will access your account on Bitcoin Profit Login. Then you get to trade with their advanced AI system that is able to track the latest developments on the market concerning Bitcoin and use the data to see how will these events affect its near-future price. In doing so, your chances of making a profit for Bitcoins are increased.
Now, let’s see why does Bitcoin’s price rises so much due to cryptocurrency market volatility.
Institutional Interest
The first factor is institutional interest and we have the best examples to help you understand. With the massive institutional interest, Bitcoin’s network becomes far more stable, which ultimately, increases its value. Just take a look at the Tesla investment. After this car manufacturer announced that it invested $1.5 billion in Bitcoin, its value sky-rocketed.
In less than a week during this time period, Bitcoin’s price went from $47,000 to over $50,000 after this trading was publicized. In doing so, Tesla helped Bitcoin break the $50,000 barrier for the first time in history. Another example is El Salvador’s law that made Bitcoin legal tender. After the news broke out, Bitcoin’s price rose by 6% in just a couple of days and it went over $37,000. Sometimes just a tweet from Elon Musk or an interest taken by Amazon or Wal-Mart is enough to cause a price increase in BTC.
The Demand Is Higher Than The Finite Supply
The relationship between the market demand and supply is the reason why Bitcoin will keep increasing in value and why it has the chance to reach $1 million by 2037. As you may know, this cryptocurrency is limited to 21 million units. Experts predict that 99% of them will be mined by 2032. Hence, the demand will keep increasing while supply will decrease. The economic rule here is simple – the more demanded and the more finite one service/product is, the more valuable it becomes. Scarcity is key for Bitcoin's success and sem-stability.
Halving Events
Finally, halving events have probably the biggest impact on Bitcoin’s price. History shows that exactly 1 and a half years after they end, Bitcoin’s price jumps to new levels. The last halving event was held in May 2020. After it ended, Bitcoin broke every known record the following year as it peaked at over $60,000. The highest Bitcoin price of all time was over $69,000 per crypto coin, although it is only at around $27,000 in 2023 after the recent crypto crash.
It is worth noting that the next Bitcoin halving events are scheduled to take place in 2024, 2028, and 2032. That means big things are happening to BTC within the next year.
It may be wise to invest in more Bitcoins before the next halving event takes place. Similar trends have been shown to be true for stock splits, so it isn't a unique pattern just for cryptocurrencies.
Crypto Conclusion
The bottom line is that Bitcoin is a big deal and will remain so. The more BTC and cryptocurrencies are adopted by users and organizations, the higher its value will become.
