The emergence of the digital currency bitcoin is nothing new to us. It has been witnessed that people all around the world are keener to invest on bitcoin and increase their share market index. However, bitcoin has also faced several ups and downs especially in 2018. The price $6000 to $7000 as the value of bitcoins is literally far away from the leading digital currency’s high point of close $20,000.
With this huge decline of the value of bitcoin, some analysts have come up with the speculation that this can be a result of fading interest among the investors. However, many investors still harbor the hope that cryptocurrency will once again rise and even exceed its former level of prominence. Therefore, the traden of cryptocurrency will flourish once again. In this article, let us explore why bitcoin price fluctuate and will the market rise or crash again.
Price fluctuation of Bitcoin- Reasons
We may often hear queries like ‘why bitcoin is rising?’ or ‘why bitcoin is crashing or going to crash?’ To go for a proper bitcoin prediction, it is essential to know why the price fluctuates.
- Like any other currency, the value of bitcoins also falls and rises. However, the thin line is price of bitcoin changes on a much greater scale. Therefore, sometimes, traden becomes difficult.
- The bitcoin value depends on the market value. The amount of people buying and selling bitcoins determines the value.
- When people sell bitcoins they often go for a lower value and that is one of the biggest reasons of the price fluctuation.
Now, let us focus on what experts have to say about the rise of bitcoins.
The Future of Bitcoin
According to Saxo Bank, the value of bitcoin will increase a lot in the coming year. According to the bank, the price will raise up to $60,000 in 2020. However, they have also predicted that there are high chances of market crash again where the price might drop more than 98%. Therefore, this roller-coaster prediction has no such stern opinion.
Other experts also say that bitcoin is likely to rise again in the coming year because large companies and banks are investing on bitcoins. This may help to increase and hold the value of bitcoins in the market.
There are also other experts and researchers like CEO of VA Research David Garrity, according to whom bitcoin is going to crash as low as $5000 in the coming year. However, this prediction cannot be considered as the perfect one. It has been found that, what people predict the most, the reality turns out something poles apart.
Therefore, we should not ask ourselves that whether bitcoin will rise or crash. Whatever the future is, traden of bitcoin will continue.
However, one thing that we need to keep in mind is when more countries regulate or create laws related to bitcoin; different hoax news can get published to distract the investors. It is believed that when people start selling bitcoins at lower prices, the market could not hold the original value for long.
There is no denial of the fact that if we follow the right process, the buying and selling of bitcoin is quite a profitable one. Although there is risk of losing a lot of money, you can also earn a lot without any doubt. Despite of supply and demand policy or regulations, investing on bitcoin is a good move indeed.