Understanding the Bitcoin Price Rally
Unless you’re a tech guru or a finance genius, the Bitcoin price rally may seem confusing. For years, Bitcoin has experienced highs and lows that may shock the typical observer. And rightfully so—with fluctuations in price from rising faster than the speed of light, Bitcoin can be tough to understand. While predictions are hard to make when it comes to all cryptocurrency, Bitcoin especially, it’s still possible for you to learn as much as you can about the Bitcoin price rally. Here’s a great guide to help you under the Bitcoin price rally, and make the best decisions when it comes to buying and selling your Bitcoin.
What Is The Bitcoin Price Rally?
The Corporate Finance Institute defines rally as “a period of continuous increase in the prices.” A rally is nothing new in the finance world. This term has been used to describe a phenomena that happens in the stock market and the cryptocurrency world. Bitcoin price rallies can be triggered by a number of things. Check out a few reasons that might ignite a Bitcoin price rally:
Price Perception - One of the reasons that impact Bitcoin price is a complex and forever changing idea that affects all cryptocurrency about how much the store market value of digital currency actually is. Store market value is defined by Investopedia as, “maintains its value without depreciating.” People’s opinions as it relates to Bitcoin is always changing and impacting the decentralized currency.
Current Events - As mentioned a bit above, public perception impacts the worth of Bitcoin. When the economy does bad, Bitcoin may be affected. When there’s a worldwide pandemic, like the one everyone experienced in 2020, Bitcoin becomes even more volatile. Under the umbrella of bad news that could cause a decrease in Bitcoin value, there’s also bankruptcies, protesting, and general social unrest. Public panic can either raise the price of Bitcoin or bring it all the way down.
Big Investors - When large institutional investors inject a lot of money in Bitcoin, they can conceivably affect the market. Financial heavyweights could play a huge role in Bitcoin trading. In terms of liquidity, if all the people who held huge amounts of Bitcoin decided to turn their coins into cold, hard cash, the market would draw down.
Popularity - Supply and demand has influenced the economy, and the stock market especially, for many years, so it makes sense that popularity would greatly have an effect on the Bitcoin market as well. With the unsecured nature of traditional banking methods looming over investors’ heads in light of the pandemic and the promise of anonymity in the Bitcoin market, Bitcoin traders are attracted to this cryptocurrency. As trust and complexity of technology blossoms, cryptocurrency benefits from a paperless platform, where every transaction is digital.
The Impact of the 2017 Bitcoin Rally
It is impossible to comprehend the 2020 Bitcoin price rally without truly looking at the effects of the 2017 rally. Analysts are using the pattern of the 2017 price rally to predict the track that Bitcoin will take in upcoming years. The FX Empire provides a graph to show the dramatic increase in the price of Bitcoin. On the graph, there is a slow climb to the top with a few pull-backs along the way, then the big leap towards a whopping Bitcoin evaluation at about $20,000. This high doesn’t last long, however, as Bitcoin sees a slow decline until it steadies. By understanding what happened in 2017, the smartest Bitcoin traders are creating strategies for buying and selling in 2020 and beyond.
The Aftermath of the 2020 Bitcoin Price Rally
After looking at some of the reasons the cost of Bitcoin may fluctuate and taking into account the path of Bitcoin in 2017, take a guess about what happened in reaction to 2020’s dreadfully eventful year. For an in-depth look at the effects of COVID on the Bitcoin price rally, read this informative article from Pelicoin. Financial predictions see similarities between the 2017 price rally and the 2020 price rally. At the beginning of the year, Bitcoin rose and fell at a steady rate. Towards the end of the year, however, Bitcoin saw a dramatic increase in value and the predictions were nothing if not ambitious. DW tracks the progress of the Bitcoin price rally and anticipates a huge increase in pricing because of Bitcoin demand, but a dwindling supply. Since the supply of Bitcoin has always been limited to stop the market from flooding, analysts expect a huge uptake in the valuation of Bitcoin. The truth is no one really knows. DW mentions how “Bitcoin had fallen 40% in just one day at the beginning of the coronavirus pandemic,” to display the severely volatile market that Bitcoin investors face when they trade.
Just last week, Bitcoin saw an increase in value that rose the price upwards towards $42,000. Predictions at the Market Insider points the finger at political uncertainty as the cause for increased demand in Bitcoin. Investors are hopeful that the uptake is temporary and every Bitcoin investor holds their breath for another fluctuation.
Pelicoin, The ATM For Every Bitcoin Price Rally
Regardless of which stage of the Bitcoin price rally you find yourself in, Pelicoin is a resource that makes buying and selling Bitcoin an easy solution. WIth security at the forefront of your Bitcoin transaction, Pelicoin offers a secure network of 35 cryptocurrency ATMs to accommodate the demand for Bitcoin no matter the state of the market. Find a Pelicoin ATM location today for a fast and easily accessible option for all of your Bitcoin transactions.