Thursday, June 23, 2022

Why Is Bitcoin Going Up

There Are Two Types Of Bitcoin Players Right Now:

Why Is Bitcoin Going Up? Bitcoin Rising To $9,399 Next?

The True Believers

The True Believers actually have confidence in the principle and potential of Bitcoin to surpass fiat currency and become a widely used currency for everyday expenses.

These are the ones that are still holding on to their bitcoins from years ago or are buying now and looking to hold on to it for the next 10+, 20+ years.

The In it for the ride-ers

Then there are the traders that are more interested in the speculation and the volatility associated with it. They love the high fluctuations and seek to profit on both the price swing up and the price swing down.

These people want to catch the rallies and exit with quick gains. To them, bitcoin is just another asset to trade like a stock, but with a much higher risk.

They dont care what happens to bitcoin at the end of the day. In fact, many think bitcoin will eventually be dead if and when regulatory bodies start to step in.

But dont be fooled. The seasoned traders have full-fledged exit strategies, a set time horizon, and ways to manage their risks. I call these people the in it for the ride-ers. They know they might lose some money, and they prepare for it.

Oh, I forgot, theres one more group. The ones that have no clue what theyre doing and are simply riding on the hype of the next hottest money-maker. More than likely, these are the ones that get burnt. Unfortunately, the majority of people jumping into bitcoin today are in this category.

Bitcoin Price Is Back Over $50000 In Three Months After A Massive Downfall In May 2021 Similarly Ethereum Is Showing A 24% Weekly Increase As Well


Bitcoin and Etherrum have shown steady growth over the last seven days, growing 7.88% and 24.08% respectively. With a market-leading cap of over $971 billion, Bitcoin has shown a 3.40% rise in 24 hours.;While Ethereum has a market cap of over $463 billion, it is growing strong with a 1.74% rise in 24 hours, holding the second position. The elevated surge rates and updates being added to the blockchain networks have increased investor’s trust back in cryptocurrencies. To know more about bitcoin prices today, Bitcoin price prediction and why is Bitcoin going up,;read along.;

Here Are Some Reasons Why Inflation Occurs:

  • Cost of production increases, leading to an increase in the prices of goods and services, or;
  • A sudden increase in demand for the same supply of goods. This usually happens when the economy is doing well, and theres a lot of money in consumers hands to spend.
  • When Government stimulates the economy by increasing its spending, this spending is usually financed by the government taking on more debt. This, in turn, leads to the Federal Reserve printing more money to cover this debt.
  • The 3rd item is the issue in todays economic climate. The coronavirus pandemic dealt a huge blow to the economy. The government has basically bailed out the economy by pumping money into businesses and consumers hands .

    This series of events is causing investors and speculators alike to lose trust and confidence in the U.S. dollar. Why?

    Fear of hyperinflation. Hyperinflation is simply inflation on steroids. This happens when inflation goes way out of hand, and the hyperinflated economys currency barely holds any value.

    Read Also: What Is Bitcoin Mining And How Does It Work

    Bitcoins Legislation Crises And Governments Monetary Policies

    Governments, both directly and indirectly, can increase bitcoin prices through their actions.;News of bitcoin legislation by governments, especially in developed countries, has often had an impact on prices.;Global crises, such as the;tensions between Iran and the United States, are also driving uncertainty about the future, driving a wave of capital into the bitcoin market.;Bitcoins is considered a safe haven for people in times of crisis to protect the value of their money.

    Sudden government decisions on bitcoin have an immediate impact on bitcoins prices at the outset of the announcement.;For example, the news that;Chinas;bitcoin bans were banned in;China in 2013 and 2017, and then immediately, caused a sharp fall in prices.;Or accepting Bitcoin ETFs, which make this asset a reliable investment tool, can quickly raise the price.;The gradual decisions of governments gradually complete the puzzle of legislation and ultimately determine the price trend.;Bitcoin regulation, if done correctly, is not only harmful but also useful when it is formalized and by large and large corporate investors.

    Governments monetary policies may also play a role in bitcoin price jumps.;When governments print money to stagnate, investors can turn to bitcoins to preserve their wealth.;For example, in the wake of the financial crisis in Cyprus in the year 2013, a wave of capital flows to the bitcoins market.

    Ethereum Price Finally Falls Below $3000

    Why bitcoins prices are going up ( Complete Information ...

    The price of Ethereum has finally fallen below the $3,000 mark after holding on for nearly a day above the milestone figure.

    Cardano is now also threatening to dip below the $2 mark, while dogecoin is hovering dangerously close to the $0.20 mark.

    Bitcoin remains above $40,000, though only by a couple of thousand dollars. The latest losses suggest this weeks crash is not quite over, and by the time this downturn does end there may be a lot of key price markers to reconquer.

    Also Check: How To Buy Cryptocurrency On Coinbase

    How To Make Sure You Avoid The Scams

    If you do want to invest in cryptocurrency, you need to make sure you’ve done your research thoroughly.

    You can start by checking this list of businesses not registered with the FCA. If a company is on this list then they may be operating illegally.

    The cryptocurrency marketplace is a target for fraud, with more than £2million lost scams – thats over £10,000 per person – between June and July 2018, according to Action Fraud.

    If it sounds too good to be true, it probably is – so avoid anything that promises sky high returns or has heavy marketing offers.

    Research thoroughly and make sure you understand how the business works, how it plans to make money and grow and find out about the people who set it up.

    What Has Tesla Done With Its Bitcoin Holding

    Meanwhile, its worth remembering Tesla is still in possession of its Bitcoin holdings, despite its environmental concerns, as confirmed by Elon Musk on Twitter.

    In response to criticism of Bitcoins drop in price, Musk said: To clarify speculation, Tesla has not sold any Bitcoin.

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    Recommended Reading: How Do You Pay Taxes On Cryptocurrency

    Why Is Bitcoin Going Up Now

    In the last couple of months, Bitcoin investors have anticipated an even larger-scale Bitcoin rally than the one in 2017 when Bitcoins price went from around $5,000 in October to almost $20,000 by the end of December. Unfortunately, the spike proved to be a bubble, and Bitcoins price was back to $7,000 by April 2018.

    However, this time things are different because Bitcoins adoption is higher than it was three years ago. PayPal has just made it possible for its users to buy, sell, and hold Bitcoin via their PayPal accounts. The company is also planning to allow users to purchase goods and services from PayPals 26 million merchants with Bitcoin in the future.

    Apart from the growing acceptance of Bitcoin as a means of payment, weve seen a rise in its potential as a store of value too. Both high-net-worth individuals and tech companies have taken a liking to this digital asset.

    For instance, CoinTelegraph informs that the leading business intelligence company, MicroStrategy, has recently announced that it has raised $650 million worth of convertible senior notes to purchase BTC as part of the companys strategy to convert part of its cash reserves into alternative assets. Similarly, the American payment provider Square has purchased $50 million worth of Bitcoin for company purposes.

    The truth is, no one knows for sure. The cryptocurrency market is largely built around speculations and market predictions because of its volatile nature.

    Could Bitcoin Become The New Gold


    So where do we go from here? One Citibank analyst says Bitcoin could hit $318,000 by the end of next year, likening its meteoric rise to the 1970s gold market. An ounce of gold was worth about $35 in the beginning of 1970, compared to a little more than $1,900 now. Part of golds appeal, as Paul Tudor Jones noted, is its value as an inflation hedge.

    But does gold actually behave that way?

    The real story is more complicated, according to Campbell Harvey, Duke professor and senior advisor to Research Affiliates. Over a time frame of hundreds of years, gold may retain its value. But over shorter periods of time, its highly volatile and very unpredictable.

    Despite this, gold certainly fills a role as a security blanket for investors who are anxious about the state of the world. Golds most recent hayday, for instance, was between 2011 and 2012 when the U.S. was stumbling through its post-Great Recession recovery and the Euro Zone was teetering on the brink of currency disaster. For much of the past eight years, as stocks have zoomed, gold has been a dead weight, though.

    It appears, then, that institutional investors are hoping to get on the ground floor of the new gold. Bitcoins current rollercoaster ride may track the bullish, risk-on appetites of stock traders, but eventually it might replace gold as a safe haven.

    The case, then, is that Bitcoin has much more room to grow than gold and will continue to attract big money in search of high returns in an era of low yields.

    Recommended Reading: How Do I Start Mining Bitcoin

    Will Bitcoin Prices Reach $100000 In 2021

    The $100,000 price level looks yet another number for Bitcoin prices and it would need to double from these levels to reach there. Many observers expect Bitcoin prices to go even higher than $100,000 and see the cryptocurrency going as high as $1 million.

    Some argue that if U.S. dollars don’t need intrinsic value neither does #Bitcoin. But if you live in America you need dollars to pay taxes, mortgages, rent, insurance, or utility bills, make car or student loan payments, buy groceries, gas, etc. What does anyone need Bitcoin for?

    Major Reason Why Bitcoin Is Going Up Sg Bitcoin

    Why is Bitcoin going up. There are several factors that are causing a surge in Bitcoin prices. The hype around the digital currency on all forms of media is reaching potential investors every day. Secondly, the surge in price encourages a lot of investors to hold their coins, with expectations of squaring off with huge profits at the peak of rallies.;Why is Bitcoin Going Down / Up Summary.

    1 day ago;I think if Bitcoin will be around in five to ten years, prices will go to regions that we cannot imagine at the moment. Because, if you really see it as a hedge against inflation and if you compare it to the size of the real estate market to the bond market I think theres a lot of catch-up potential.. ;Why Do Bitcoins Go Up and Down Without Ringing a Bell. Lana Vrz – Septem. As we know that only 21 million Bitcoin to pure currencies can remain in the active circulation of the Bitcoin Why is bitcoin going up network this is the reason why action from only one user can affect the whole community of the Bitcoin cryptocurrencies network. If all of a.

    Bitcoins price is defined by the last trade conducted on a specific exchange. Price goes up when buying pressure increases, and goes down when selling pressure increases. There are several major factors that can cause the price to go up or down such as: Media hype / fornitureindustrialisassari.itted Reading Time: 8 mins.

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    The Final Word On Bitcoin: Buyer Beware

    Regular investors dont really have the luxury to stomach wild price volatility and wait out years and years of negative returns on the hope that an esoteric decentralized financial product will conquer the commanding heights of finance and upend gold as the ultimate safe-haven asset. You need a steadier financial plan, like a well-diversified portfolio of low-cost index funds that has proven to make retirement possible.

    If you want to scratch your Bitcoin itch, make sure you do so with a fraction of your taxable investments, in your brokerage account. The standard allocation recommended for gold has been a maximum of 10% of your total portfolio. If Bitcoin ends up as the new gold, that upper limit would still make a ton of sense.

    When In Doubt Zoom Out’

    Why Isn

    A common mantra among bitcoin enthusiasts is when in doubt, zoom out.

    The idea is that any short term price movements seem relatively insignificant when taking a broader view of the cryptocurrency market.

    The current price of just above $43,000 is still more than twice that of any previous high seen before 2021. The question many analysts are asking this morning is whether this current cycle will mirror that of those seen in 2013 and 2017 and if so, is it on the way up or down?

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    Who Are They: Makers And Takers

    The Bitcoin cryptocurrency Price movements are explained as more purchasers than the sellers or vice versa. To be honest, it is not true because two parties are always in demand for the deal. It is simple: if someone bought BTC, then someone else sold it!

    The pushing factor that makes the value increase or decrease is the side thatâs more aggressive in âcrossing the spread.â The delta between the best bid and the best ask price is exactly the spread.

    Let us recall the example with Bitstamp. The best bid is 9350 dollars, and the best ask is 9400 dollars, which makes the spread worth fifty dollars.

    The side that is more motivated to make a cryptocurrency deal will pay these fifty dollars spread costs to perform the trade instantly. The paying side is also called âthe takerâ because this side, basically, takes the offer mentioned in the Order Book by the âmakerâ . The data about what do you do more, take or make, will be depicted in your personal data tab in some crypto trading platform.

    Imagine a scenario in which many buyers are sure that the price will be just over ten thousand dollars by Saturday. They act as takers. The ones who buy Bitcoin think that they will have a profit by purchasing below ten thousand dollars. So, in this case, they would want to pay the crypto spread to get all of the coins on offer at 9400 dollars. In other words, they would like to make six hundred dollars minutes fifty dollars spread.

    Loss Of Trust In Fiat

    One of the major drivers behind Bitcoins price surge throughout the years was loss of trust in traditional fiat currencies .

    When people lose trust in their own currency or banking system they look for an alternative to store value that isnt controlled by any government or bank. Usually, Bitcoin, among other assets such as gold, is a popular solution.

    Some good examples of this are the Cyprus bail in crisis of 2013, Indias demonetization in 2016 and Argentinas Peso decline in 2019.

    Recommended Reading: How Do I Get Crypto Buying Power On Webull

    The Bottom Line On Cardano

    Investing for the long term is potentially a sound move when buying cryptos. ADA-USD has solid potential to eventually become a mainstream form of currency. Yet investors should only invest in Cardano if their time horizon extends to several years.

    Cardano remains highly susceptible to the broader crypto markets tremendous volatility. It is simply not possible to know what might happen in a week or month. Daily moves of around plus or minus 3%-5% are quite common in digital assets.

    On the date of publication, Tezcan Gecgil did not have any positions in the securities mentioned in this article.

    Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation

    The Price Is Close To The Highest Price Ever

    Why Is Bitcoin Going Up Through 2021? // What Is Cryptocurrency And Should You Invest Now Explained

    Sometimes, when the price of the BTC gets to a value near the latest highest point of price, the price resistance happens, and, therefore, the price can not be higher than the previous high price. That is because many sellers put sell orders close to historical record high; as a result, when the price gets to the points, the sales pressure kicks in, and it leads to a downward bull market in price.

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    What Happens To Bitcoin After All 21 Million Are Mined

    The available supply will be exhausted. Nevertheless, once all the Bitcoins are mined, the miners will still be involved in processing the crypto payment transactions. But the miners will no longer get the ability to receive awards and benefits since there is no coins generation and no transaction fees.

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