You know it, we know it.
Bitcoin's price has been a roller coaster over the past few years going from under $1,000 in 2017 to over $68,000 in 2021 before falling to around $40,000 today. What determines Bitcoin's value? What can make it go up or down? What can we expect from its future?
Bitwise recently predicted that BTC will surpass $80,000 and that Bitcoin spot ETFs will be approved this year just beginning.
Bitcoin at the time of writing
Throughout January, data from Cointelegraph Markets Pro and TradingView showed BTC price rallies that took the market as high as USD 43,853 on Bitstamp.
Consolidation followed, with USD 43,500 as the target at the time of writing after the Wall Street open.
Bitcoin has taken advantage of a change in tactics since last weekend and is now up more than USD 5,000 against the two-month lows seen earlier.
As reported by Cointelegraph, the improvement came alongside a significant reduction in outflows from the Grayscale Bitcoin Trust (GBTC), one of the recently launched spot Bitcoin exchange-traded funds (ETFs). Now, however, bulls face stiff resistance at USD 43,800 as part of an intra-week range.
Factors influencing Bitcoin price.
Take note trader because we are going to talk about several factors that can influence Bitcoin price.
Factors that can drive the price:
It is increasingly growing in popularity by businesses, governments and individuals: Recently, more people and organizations have adopted Bitcoin. The demand for the cryptocurrency is increasing, which is going to lead to a considerable movement this year according to many we believe.
Technological innovation: The development of new technologies that improve the security, speed and scalability of networks.
Scarcity: Bitcoin's supply is limited to 21 million units, which may contribute to its value.
Factors that may slow or drive down the price:
Regulation: Stricter regulation of cryptocurrencies by governments may make investors more cautious about investing in Bitcoin.
Competition: The development of new cryptocurrencies that offer better solutions or more advantages may compete with Bitcoin and reduce its demand. This is especially true for cryptocurrencies that can be adopted with less difficulty at a mass level.
Cyber attacks: Cybersecurity has failed before, if we talk about BTC, so the risk of integrity and trust of Bitcoin networks can damage its reputation and lead to a decrease in prices.
Bitcoin's particular volatility: it may deter some investors, which may lead to a decrease in demand and thus in its value.
Current global legal situation of the Bitcoin market
The current global legal situation of the Bitcoin market is very varied. Some countries, such as the United States, have taken a more cryptocurrency-friendly stance, while others, such as China, have taken a more restrictive stance (some sources believe this is a prelude to something much bigger we will see in a few years due to China's economic positioning)
Overall, the trend globally is towards greater adoption of cryptocurrencies, which can be positive, especially, for the price of Bitcoin. However, the legal situation is still uncertain and 2024 comes full of surprises.
Forecasts are necessary, but they are not a law
Dear trader, as we always tell you: we cannot base all our decisions on what some sources say. We have to take into account other factors, such as our own experience, our own criteria, our own objective.
Stay connected with our community to be prepared and ready to adapt to changes, take advantage of opportunities and face risks.
As well as having a contingency plan in case success knocks on our door or happens to our neighbor's house.
We are already used to the fact that the future of our business is uncertain, but also that it is ours and that our objectives are what they are.
Let us know what you think in the comments! Your opinion is very valuable.
See you in the next article.
REFERENCES
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interpreted and provided by AI (Google Bard). Written and edited
by Kevin David Terán and verified by Pedro Arizaleta and Erwin Sánchez
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