What makes Bitcoin go up and crash down?
The crypto market has been known for its volatility which is applicable in the stock market as well, market volatility is what makes the exchange market interesting take a scenario where all stock in the market remains stagnant for weeks without any significant movement in either direction these will probably call for major concern in the market as traders invested stocks and position will not appreciate at any price, an increase in market volatility can be a turning point for investors to make good profit pending on the current market position they are trading on.
Bitcoin the largest cryptocurrency with a high market cap can be subject to changes that make the digital asset fluctuate in price causing volatility in the market being a leading pair for most altcoins in the market a price change can affect other major cryptocurrencies, I will be highlighting some of these factors that possibly make this store of value fluctuate.
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- Market event
Market events are trading activities that run daily in the exchange market these include the stock market, commodities, rising inflation, and weekend trading volume and the number of transactions processed in the market could make the price of bitcoin rise or fall.
- Social network
Twitter has been a leading platform where retail traders get valuable information from high-profile institutions and influencers positive reviews from these influencers could determine the market flow of an asset, feedback from these influencers can significantly make the price of bitcoin appreciate or reverse.
Bitcoin falls after Elon Musk tweets breakup meme
Bitcoin price plummeted as a result of investors reacting negatively to the above tweet this shows how social media can affect the price cap of Bitcoin.
- Regulation
Crypto bills and regulations have been a major drawback affecting the growth of cryptocurrency investors and institutions are yet to embrace the new digital currency due to strict laws and regulations from governing officials in international countries, 2021 we did witness multiple market cracks down due to regulations imposed by lawmakers these regulations have made the crypto market to fall making cryptocurrency to always rise and fall.
Regulation of crypto has been a major factor that currently affects the stability/growth of the cryptocurrency market today tackling regulatory bodies will be a major milestone that needs to be addressed come 2022.
Wish you all a successful 2022!
Greetings @mccoy02, The volatility of the cryptocurrency market is very interesting and as you indicate the BTC as the main currency of this market is who directs the course of the rest, the reasons why the BTC can go down or up can be many but the most constant are those mentioned in your article, for example Elon Musk just by announcing something either positive or negative about the BTC and this fluctuates.
Hi thanks for sharing your thoughts sure high profile influencers play a vital role in determining the flow of bitcoin.
Greetings @mccoy02 ❤️💕
There's actually no doubt that Bitcoin and other cryptocurrency tend to display erratic nature of rising and falling due to their volatility. I also agree with the listed points you mentioned/listed such as market event causing rise and fall of cryptos. Another important aspect is the selling and buying pressure by whales also has huge significant effect on the price or value of cryptos.
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️💕❤️
Hey buddy thanks for the feedback, i agree with you whales on crypto have significantly caused unforeseen movement in the market.
Greetings @ mccoy02
All these elements that you mention are important to observe the behavior of Bitcoin, without place the movements of the soft hands are the ones that do more damage to the price.
Hopefully with time they will learn not to get carried away by emotions and fake news.
Thank you very much for sharing.
News broadcasting channels tends cause FUD and FOMO among investors/traders with time this will no longer be a treat to investors i guess.
Thanks for the feedback.
Social media plays alot of role this year in cryptocurrency as people tend to buy a coin when a tweet favoured the coin.
Last year tweet from prominent users have caused crypto to move in either direction some where bullish while some caused FUD.
Thanks for sharing happy new year.
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