An overview of fluctuations and causes of bitcoin price volatility
The price of bitcoin has fluctuated a lot since its inception in 2009. Fluctuations that make it an unpredictable digital currency. Bitcoin price fluctuations are currently measured by the Bitcoin Fluctuation Index. This index has been created with the aim of tracking price fluctuations through the market value of Bitcoin over different time periods. You must be wondering what has changed in the price of bitcoin over the years? What is the cause of these price fluctuations? Follow us to learn more about some of the reasons for Bitcoin price fluctuations.
History of Bitcoin price fluctuations
• Bitcoin from 2009 to 2010
Bitcoin started its journey with zero value in 2009. This figure did not change until May 2010. But with the launch of the first Bitcoin exchange at BitcoinMarket.com, the purchase of pizza with Bitcoin by Laszlo Hanich, the launch of the MtGox exchange and the launch of the first hardfork network of this digital currency, its price also increased and reached a maximum of $ 0.39.
Bitcoin in 2011
The year 2011 was very important for Bitcoin in many ways. In 2011, although the price of Bitcoin reached a record $ 32 due to the launch of various Bitcoin exchanges and the publication of an article on the Silk Road site, it experienced a sharp decline in price due to the hacking of the Amtigox exchange. And fell to $ 0.01.
Bitcoin in 2012
Bitcoin price increase was almost uniform in 2012 and was able to attract the attention of many media. Bitcoin started in 2012 with a price of $ 4 and ended in 2012 with a price of $ 13 after a series of events, including the closure of Paxom and Trade Hill exchanges, acceptance by WordPress and halving of the Bitcoin mining bonus.
• Bitcoin in 2013
This year, Bitcoin started to work seriously and experienced a lot of price fluctuations. Events such as the Cyprus economic crisis, the ban on bitcoin use in Chinese financial institutions changed the price of this digital currency. This year, the price of Bitcoin was able to cross the $ 1,000 mark and set a new record.
Bitcoin in 2014
2014 was not a good year for bitcoin, and the price of this digital currency fluctuated widely following the alleged attacks on large exchanges, the closure of the ottomagox exchange, rumors of Satoshi being found, and the acceptance and purchase of bitcoin by Dell and Microsoft.
• Bitcoin in 2015
2015 was a new beginning for the price of Bitcoin. The launch of the QuinnBase exchange, the exemption from the purchase of bitcoin from VAT in the United States, and the US legislation on bitcoin raised the price of this digital currency again.
• Bitcoin in 2016
The continued rise in the price of Bitcoin this year has boosted the confidence and motivation of many investors. Events such as the refusal to buy Bitcoin by Google developer, the bitcoin exchange hack, the halving of the Bitcoin mining bonus, Donald Trump’s presidency, and the launch of the first peer-to-peer trading platform to buy and sell Bitcoin have pushed up the price of this digital currency. .
• Bitcoin in 2017
2017 was the year of the bitcoin price boom. This digital currency experienced the highest price in its history in 2017. Acceptance of bitcoin as a method of payment in Japan, the birth of bitcoin cache, hardfork bitcoin gold, increased the price of this digital currency.
• Bitcoin in the years 2018 to 2019
In these two years, Bitcoin has gone through many trials and errors. The highest price of Bitcoin this year was on January 7, trading at $ 16,455.99. But the price of this currency gradually decreased with several events until 2019, when it fell into the $ 3,000 price trap. But finally, with the beginning of the second quarter of 2019, it started its upward trend.
• Bitcoin in the years 2020 to 2021
BTC digital currency experienced a sharp decline in price with the onset of the Corona virus in early 2020; But by the end of this year, they were able to kill the previous maximum by growing by a few percent. And so far, with the acquisitions of Tesla Bitcoin, it has been able to reach a record $ 47,000.
As mentioned above, the bitcoin price trend in each of the years, a series of factors have had the greatest impact on bitcoin price fluctuations, which are the most important factors of instability and bitcoin price fluctuations.
What causes Bitcoin price fluctuations?
There are many factors that contribute to Bitcoin price fluctuations, some of which are mentioned below:
The bad news: News headlines about an asset like Bitcoin always have a big impact on price fluctuations. Some news and sudden decisions can scare users who buy bitcoin and increase or decrease its price.
Perceived value: One of the reasons for Bitcoin price fluctuations is to store the perceived value of this digital currency against traditional assets. The extent to which people understand bitcoin has a huge impact on its value.
Big Owners and Whales: Big whales and digital owners can have a big impact on Bitcoin price fluctuations by selling or buying their assets.
Inflation: Inflation in some countries causes people to convert their assets into bitcoins to preserve their value.
Legal issues and restrictions: Legal issues and government decisions can also change the price of bitcoin. Strict tax laws, for example, lead people to buy bitcoins and hide their assets from the government.
The above are just some of the factors influencing bitcoin price fluctuations. Note that knowing all of these factors may not be able to predict the price of Bitcoin, but it will help you a lot to understand the fluctuations of this digital currency.