What determine Rise of Bitcoin

[Olajidey]

I will like to know what is the factors that determine the rise in bitcoin, This is because you noticed that you have bitcoin and sometimes you will notice increment in your bitcoin wallet, sometimes you will notice a drastic decrease in your bitcoin wallet. In 2017 bitcoin rises and I think the rise is because of Ponzi that uses bitcoin as the trading fund but I can not seems to figure out while bitcoin increase up to $35,000 this year. There is a rumour that some big politician is saving in bitcoin that is the reason why, but I am not convinced with that rumour.
Please, I need a fact on what determines the rise in bitcoin, which market dictate the rise in bitcoin.

 

[Peppul]

Generally the price of bitcoin is determined by supply and demand. When demand for bitcoin increases, the price of bitcoin increases, and when demand falls the price of bitcoin also falls. That's why you see that one moment you coin in your wallet might increase today that's due to the increase in demand, and the next that same coin in your wallet might decrease which will be a loss for you because of the fall in demand.
Although most analyst believes that the Covid-19 hit year is responsible for the revival and meteoric rise of the digital currency. Many bitcoin investors have said that the pandemic hit year offered a perfect environment for the cryptocurrency. Also the fact that interest rates on traditional investment hits rock bottom during the year also helped in the rise of bitcoin as more investors poured their money into cryptocurrency.

 

[btaliat]

Just like any products, the law of the market forces always affect the price of cryptocurrencies. When people demands is of high increment, then there is tendency that the price too may rise and if they demand too low, the price may be decreased as well.
The investment of some big people as you said ad well may affect the price of bitcoin. When Elon Musk purchase millionaires of dodge coins, the price rose. So I won't be surprised if the fact behind the huge increment in the price of bitcoin is as a result of maybe some rich people invested in it.
Also activites of individuals online too. During lockdown, most people relied on online platforms to get money. Which made them to focus more on bitcoins.

 

[Sotherefore]

Cryptocurrency is extremely volatile because the demands and supply of it within a particular period of time is not stable and as a result the movement of bitcoins shows a high level of instability, but in any case the price of cryptocurrency and its movement are mostly determined by the law of demand and supply within that period of time.


But as a crypto trader you will understand that it is not all movement of cryptocurrency are determined by the law of demand and supply but it depends on the algarithm of cryptocurrency that will determine his movement within a particular period of months in a year.

There are some season in the crypto space that are always considered the Bearish season and in this case it does not really mean that there is a low buying Force in the crypto space but during that season the market must adjust itself to fit the bearish movement because of how it was set up.

The movement and developing nature of the crypto-currency market is completely unpredictable and will require the knowledge of an expert to be able to know the real technology behind the high volatility in the crypto space , even me I do not know.