Bitcoin price stays in the center of attention for millions of people. Some investors make a fortune on it, some lose all their savings. Bitcoin community members keep on trying to reveal the secret of its price movements but no one has succeeded so far.
Still, there are some factors that influence the price movement of Bitcoin and altcoins. In this article, we will take a look at them and explain why they matter.
Regulations
Regulations play a crucial role in bitcoin price. It is quite unfortunate that there’s no common approach toward Bitcoin that takes place in all of the countries. While some countries are crypto-friendly, some still keep banning it. When rigid regulations are put in place, the price goes down as an increasing number of investors may pull out their investment out of fear of losing out. On the other hand, when it gets favorable treatment from governments, investors respond positively, which leads to price appreciation.
Hacking
Hacking is the main problem of crypto community. Almost any exchange has suffered from a cyber-attack including giants like Binance. Whenever hackers manage to steal coins from this or that exchange or wallet, some people decide to walk out of the crypto world. This, for sure, makes the price of crypto go down.
News and Media
Another factor that significantly affects the bitcoin price is news and media. Over the years, there have been price dropdowns in response to negative news. There has also been news that drove the price up. For instance, the recent announcement of Facebook Libra had a positive effect on Bitcoin.
Of course, these are not the only factors that decide the price of Bitcoin, but they really play a significant role. So if you are trading Bitcoin, keep an eye on these facts.
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