Bitcoin prices were up to 23,331 US dollars at the end of December 2020, but from February to May 2021, the price continued between 3.89 and 54,439.00 US dollars for 1 BTC. Since then, the price of Crypto Details has plummeted, and the price movement has been repeated at 1 BTC = 3108 USD.
Market Price Fluctuation of Bitcoin Market Price
This section of the article highlights the points supporting the market price fluctuation of Bitcoins. The price of bitcoin varies depending on the balance between supply and demand. In other words, "how many people want" and "how much is supplied" determine the price of bitcoin. Demand for bitcoin was declining in the 2020s, and price movements remained at 7,777 US dollars.
However, in 2021, demand for bitcoin will increase rapidly. The price was also recorded at 54,439.00 US dollars to 64,439.00 US dollars from February to May. In this way, the existence of bitcoin has become known, and the more people who want it, the more valuable bitcoin has gained.
The value of fiat currency has decreased
In 2020, the coronavirus epidemic will make the world's economy stagnant. Therefore, governments in each country are pursuing monetary easing by lowering interest rates. Monetary easing means a substantial decline in the value of money, which increases the number of people who invest in assets that are difficult to inflation. In the past, Gold was often chosen as this investment destination, but bitcoin is now widely recognized as a target.
The half-life has increased the rarity
Half-life is the time when bitcoins of mining rewards are halved approximately once every four years. This reduces the supply from miners, which increases the rarity of bitcoin relative to each other, and can be expected to increase their value.
In the past three half-life periods, the value of bitcoin has increased by around a year. The half-life period implemented in May 2020 was about 1 BTC = about 38885 US dollars. But one year later, in May 2021, 1 BTC = about 54,439.00 US dollars.
More bitcoin holders (whales)
Investors who hold bitcoins in large sizes are called "whales". Whales determine the future of financial instruments through more detailed research and often hold stocks that have judged their usefulness for a long time. Bitcoin was also promising, so it now owns a large number of sheets.
As long as cryptocurrency transactions are made, the flow of bitcoin will not disappear. As the demand for cryptocurrencies as whole increases, the volume of bitcoin transactions will increase, so you can expect to improve the value in the future.
Demand in developing countries
In developing countries where the financial system is not spreading, the penetration rate of bank accounts is not high. Many people in the world cannot have bank accounts as refugees. Therefore, bitcoin that can be easily used with smartphones is expected to be in great demand.
Although, the market price value of Bitcoins plummeted, it was suggested that cryptocurrencies would spread in developing countries. In countries where the credibility of your currency is low, it is also possible that bitcoin and cryptocurrencies may take root as practical means. In fact, bitcoin was adopted as a fiat currency in El Salvador, a small country in Central America, in June 2021. It is said that 70% of the country's citizens do not have a bank account.
To predict bitcoin (BTC) Price Movement
Impact of bitcoin price movements on other cryptocurrencies
bitcoin has gained a position as the base currency in cryptocurrency exchanges. There are many other altcoins in cryptocurrencies, but you must always trade bitcoins to handle those coins. In other words, bitcoin shows that it is connected to all cryptocurrencies, and altcoins show some similarities when bitcoin prices fluctuate.
Conclusion
No one can predict bitcoin price movements 100% accurately. However, by collecting a lot of information about bitcoin and doing high-quality analysis, you can predict a more feasible future. Bitcoin is the top cryptocurrency stock with a good market capitalization, approval of bitcoin ETFs (exchange-traded funds), fiat currencies in El Salvador, etc. When planning to invest in Bitcoins, you should consider using a reliable online crypto trading platform such as Bitcoin Era.