Monday, February 6, 2023
DLTEMPIRE
  • Home
  • News
  • Blockchain
  • Ethereum
  • BNB
  • Binance
  • Luna Crash
  • Crypto Mining
  • DeFi
  • ICO
  • Regulation
  • Top 10 coins
No Result
View All Result
  • Home
  • News
  • Blockchain
  • Ethereum
  • BNB
  • Binance
  • Luna Crash
  • Crypto Mining
  • DeFi
  • ICO
  • Regulation
  • Top 10 coins
No Result
View All Result
DLTEMPIRE
No Result
View All Result
Home News

Cryptocurrency Check: Why are Bitcoin prices so volatile? MintGenie explains

Lucinda Keatinge by Lucinda Keatinge
September 17, 2022
in News
0
Cryptocurrency Check: Why are Bitcoin prices so volatile? MintGenie explains
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


Around six year ago, the price of one bitcoin hovered around $580 (equivalent to nearly ₹40,000) in August 2016. Not only this, it was selling for around $11,200 (nearly ₹8,17,000) in Aug 2020 before it spiked to over $37,600 (nearly ₹28 lakh) in August 2021, registering a whopping growth of around 236 percent in just 12 months.

Now, in September 2022, it has now declined to $20,210, reporting a considerable fall of 46 percent in a little over one year.

Investors often wonder why the price of bitcoin fluctuates so sharply. The unpredictability in price makes it seem “unreliable” as an investment among a section of investors. But to understand why its price changes so fast, we must know the reasons that drive this cryptocurrency and importantly — its demand.

READ MORE: Cryptos to NFTs: Are these new investment opportunities worth considering now?

Reasons for the spike

One key reason for a massive jump in its price is that the established institutions such as pension funds, investment trusts have now started to invest in it. Until 2017, bitcoins were invested into by individual investors. But with greater acceptability, many billionaire investors and financial institutions have now come out in open in favour of bitcoin and its future. For instance, JP Morgan started offering bitcoin funds to its wealthy clients, and also created a digital coin JPM Coin to make payments using blockchain technology.

Musk effect

When electric car maker Tesla headed by Elon Musk bought bitcoins worth $1.5 billion in February 2021, the price of a bitcoin hit an all-time high to $44,000 (around ₹33 lakh). Later, Musk dragged his feet on allowing Tesla to accept payments in bitcoins by expressing environmental concerns that bitcoin mining uses large amounts of electricity. However, he again announced in July 2021 that Tesla will likely accept payments for Tesla in bitcoins, pushing the bitcoin prices again.

READ MORE: Here’s how to trade the bearish flag pattern in crypto

Greater acceptability

Vendors and merchants have also started accepting bitcoins. Paypal, Starbucks, BMW, Expedia and Zinga, among several others, now facilitate transactions in bitcoins. Any positive statement from central banks in favour of blockchain technology is likely to tip the scale in favour of bitcoins.

El Salvador became the first country in June to accept bitcoin as a legal tender starting September 2021. As a matter of fact, barely any institution or country is averse to the blockchain — the technology behind the creation of bitcoin.

So, bitcoin prices have jumped lately to new historic highs. Some have invested into it for the fear of missing out, while a few others are still unsure about its future. Whichever side one is on, it is advisable to exercise due caution before committing large sums to it.

Follow MintGenie for more such stories. 

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Post your comment
First article



Source link

Tags: BitcoinCheckCryptocurrencyExplainsMintGeniepricesVolatile
Previous Post

What Is True DeFi And Why Do We Not Use It Currently?

Next Post

Cryptocurrency in Nepali law: Your FAQs answered

Lucinda Keatinge

Lucinda Keatinge

Next Post
Cryptocurrency in Nepali law: Your FAQs answered

Cryptocurrency in Nepali law: Your FAQs answered

  • Trending
  • Comments
  • Latest
Veteran pilot killed in vintage airplane crash in Kern County

Veteran pilot killed in vintage airplane crash in Kern County

September 3, 2022
Wells Fargo Mentioned Ripple (XRP) As A Digital Currency In August Report

Wells Fargo Mentioned Ripple (XRP) As A Digital Currency In August Report

August 16, 2022
Sold Out Presale Creating Huge Interest In Gnox (GNOX) From Binance Coin (BNB) And PancakeSwap (CAKE) Holders

Sold Out Presale Creating Huge Interest In Gnox (GNOX) From Binance Coin (BNB) And PancakeSwap (CAKE) Holders

August 16, 2022
Best Coins To Buy On PancakeSwap App In August 2022

Best Coins To Buy On PancakeSwap App In August 2022

August 12, 2022
How the Stance of World’s Top Crypto Exchange Could Impact Possibility of Future Ethereum Forks

How the Stance of World’s Top Crypto Exchange Could Impact Possibility of Future Ethereum Forks

0
Binance, Mastercard launch prepaid card in Argentina to bridge cryptocurrencies, everyday purchases

Binance, Mastercard launch prepaid card in Argentina to bridge cryptocurrencies, everyday purchases

0
What is Alpaca Finance? – Asia Crypto Today

What is Alpaca Finance? – Asia Crypto Today

0
Blockchain ETF’s Top Holding Has Been a Strong Outperformer

Blockchain ETF’s Top Holding Has Been a Strong Outperformer

0
ValidEntry Unveils Breakthrough Identity Platform for DeFi: Achieving KYC Compliance while Protecting User – EIN News

Can the bond market sell-off negatively impact Binance Coin price? – FXStreet

February 6, 2023
Americans Turn to Artificial Intelligence to Curb Gun Violence

Americans Turn to Artificial Intelligence to Curb Gun Violence

February 6, 2023
ValidEntry Unveils Breakthrough Identity Platform for DeFi: Achieving KYC Compliance while Protecting User – EIN News

ATFX introduces a blockchain verification technology – ThePaypers – The Paypers

February 6, 2023
ValidEntry Unveils Breakthrough Identity Platform for DeFi: Achieving KYC Compliance while Protecting User – EIN News

BOTS, Inc. is Offering Game-Changing ChatGPT and OpenAI-Powered Services for B2B Customers – Yahoo Finance

February 6, 2023

Recent News

ValidEntry Unveils Breakthrough Identity Platform for DeFi: Achieving KYC Compliance while Protecting User – EIN News

Can the bond market sell-off negatively impact Binance Coin price? – FXStreet

February 6, 2023
Americans Turn to Artificial Intelligence to Curb Gun Violence

Americans Turn to Artificial Intelligence to Curb Gun Violence

February 6, 2023
ValidEntry Unveils Breakthrough Identity Platform for DeFi: Achieving KYC Compliance while Protecting User – EIN News

ATFX introduces a blockchain verification technology – ThePaypers – The Paypers

February 6, 2023
ValidEntry Unveils Breakthrough Identity Platform for DeFi: Achieving KYC Compliance while Protecting User – EIN News

BOTS, Inc. is Offering Game-Changing ChatGPT and OpenAI-Powered Services for B2B Customers – Yahoo Finance

February 6, 2023

Recent News

ValidEntry Unveils Breakthrough Identity Platform for DeFi: Achieving KYC Compliance while Protecting User – EIN News

Can the bond market sell-off negatively impact Binance Coin price? – FXStreet

February 6, 2023
Americans Turn to Artificial Intelligence to Curb Gun Violence

Americans Turn to Artificial Intelligence to Curb Gun Violence

February 6, 2023

Categories

  • Altcoin
  • Artificial Intelligence
  • Binance
  • Blockchain
  • BNB
  • Business
  • Crypto Mining
  • DeFi
  • Education
  • Ethereum
  • Featured
  • ICO
  • Luna Crash
  • Metaverse
  • News
  • Regulation
  • Top 10 coins
  • Uncategorized

Follow Us

Follow Us

Find Via Tags

Big Binance Bitcoin Blockchain BNB BTC Buy Cardano CEO Chain Coin CoinDesk Coins crash Crypto Cryptocurrency DeFi Digital Dogecoin ETH Ethereum Exchange eyes Finance FTX Heres Investors latest LUNA Market Million mining Network News NFT Prediction Price Protocol Regulation Report Solana Token Top Tweet Week

© 2021 Dltempire

No Result
View All Result
  • Home
  • News
  • Blockchain
  • Ethereum
  • BNB
  • Binance
  • Luna Crash
  • Crypto Mining
  • DeFi
  • ICO
  • Regulation
  • Top 10 coins

© 2021 Dltempire