Why Bitcoin’s price fluctuates so much?
Bitcoin’s price is going strong, and it may create a new record soon. Let’s read this blog to understand why traders should check the latest price rate before doing anything. Bitcoin is said to be one of the strongest contenders in the cryptocurrency world, and experts take note of its price fluctuations. At present, the latest Bitcoin price rate is estimated at $57,022, after failing the resistance level of $60,000. Due to its growing popularity, Bitcoin has garnered much attention from experts around the world. Market analysts mentioned several reasons for which the cryptocurrency’s price can go up and down. Factors like supply & demand, political situation, and economic stability are the prime factors. But market analysts explain how Bitcoin can turn into a driving force for the future economy. Deutsche Bank Research, governments may bring stricter policies to regulate Bitcoin and BTC-related transactions. It is because this currency may become a major currency in the world in two or three years. Also, people will know by then if this currency has the potential of becoming an asset class. Bitcoin is already a volatile agent, and its volatility will only increase more after certain years. In other words, it will become ultra volatile, and investors would have to keep a strict eye on the price’s fluctuation. Although Deutsche’s report did not exclusively say by how much the price of Bitcoin can go up, Bank of America’s did. According to the report, the currency’s price can go up by 1%, if it experiences a $93 million surge or inflow. This is a stark contrast to gold, which would require a heavy push to move forward (a push equivalent to $2 billion worth). This is a massive disparity caused by a sudden inflow of funds because most Bitcoin holders are executing a bullish behavior. so, they have not yet let go of their assets, which can further drive up or down its price. However, the report explained one thing, that it cannot predict the profitable price for cryptocurrency whales. But an estimate suggests that Bitcoin's price can go up to $1 million if things go smoothly. Cryptocurrency exchange Kraken's growth lead Dan Held agrees with this notion in an interview with leading cryptocurrency media outlets. On March 17, the price of Bitcoin bounced up, after crossing the $58,341.03 resistance level. This event allows whales to engage in profit booking on the very next day. However, the bulls are not lagging, as they began making purchases, thus shooting the price again above $58,341.03. If this current
curve is continued, soon the price can shoot above $61,825, which is till now, the highest price point in the history of Bitcoin. And when that happens, it can generate an uptrend of $72,112. If you are a trader, you need to follow the price changes to make an informed decision. Experts believe if the price goes down, it will be considered as the first sign of weakness. This is the signal for the bears and they may sink the price further, below $48,578. So, it's essential to check the market and the latest Bitcoin price rate before making any decision.