What makes Bitcoin go up and crash down?
The crypto market has been known for its volatility which is applicable in the stock market as well, market volatility is what makes the exchange market interesting take a scenario where all stock in the market remains stagnant for weeks without any significant movement in either direction these will probably call for major concern in the market as traders invested stocks and position will not appreciate at any price, an increase in market volatility can be a turning point for investors to make good profit pending on the current market position they are trading on.
Bitcoin the largest cryptocurrency with a high market cap can be subject to changes that make the digital asset fluctuate in price causing volatility in the market being a leading pair for most altcoins in the market a price change can affect other major cryptocurrencies, I will be highlighting some of these factors that possibly make this store of value fluctuate.
Market event
Market events are trading activities that run daily in the exchange market these include the stock market, commodities, rising inflation, and weekend trading volume and the number of transactions processed in the market could make the price of bitcoin rise or fall.
Social network ***
Twitter has been a leading platform where retail traders get valuable information from high-profile institutions and influencers positive reviews from these influencers could determine the market flow of an asset, feedback from these influencers can significantly make the price of bitcoin appreciate or reverse.
Bitcoin falls after Elon Musk tweets breakup meme Bitcoin price plummeted as a result of investors reacting negatively to the above tweet this shows how social media can affect the price cap of Bitcoin.
Regulation ****
Crypto bills and regulations have been a major drawback affecting the growth of cryptocurrency investors and institutions are yet to embrace the new digital currency due to strict laws and regulations from governing officials in international countries, 2021 we did witness multiple market cracks down due to regulations imposed by lawmakers these regulations have made the crypto market to fall making cryptocurrency to always rise and fall.
Regulation of crypto has been a major factor that currently affects the stability/growth of the cryptocurrency market today tackling regulatory bodies will be a major milestone that needs to be addressed come 2022.
Wish you all a successful 2022!
