How does the purchase of Bitcoin affect the price?
The value of the most popular cryptocurrency, which is Bitcoin, for a long time was increasing. But, as we commonly know, what goes up - in the end has to fall.
The biggest increases
The so-called cryptocurrency boom, and Bitcoin in particular, began in early 2017, when the price began to grow slowly. At that time, many new places were created where you could buy bitcoins using a credit card. Thanks to this and the slow media interest - cryptocurrencies have become a hot topic. It was not only on the Internet where were loud about them, but also in television programs and radio. Most governments that took up the topic of the virtual currency warned against its purchase online, in particular with a credit card. This was argued for the risk and lack of physical value of cryptocurrencies. Sometimes it was even stated that cryptocurrencies serve only to launder money or finance terrorism. These and similar warnings were published for one simple reason - the government did not really know how to regulate the cryptocurrencies and purchases of Bitcoin. In addition, along with the high volatility of prices, the society noticed that during accurate speculation on the stock exchange they are able to earn more than by placing money on the deposit. Campaigns regarding the negative perception of cryptocurrencies have brought them far greater popularity. As a result, there are more exchange offices that sell Bitcoins by credit card or exchanges, where Bitcoin can be exchanged for another cryptocurrency.
So what affects the price of Bitcoin and other cryptocurrencies?
Above all, a hard fork. It is obvious that the most favorable for the price movement are hard forks, in which holders can get an additional, new cryptocurrency. The most important hard fork, which took place in August 2017, was a hard fork carried out on Bitcoin, as a result of which everyone received the equivalent of a new cryptocurrency - Bitcoin Cash. Shortly before this event, the Bitcoin exchange rate went up by almost 1,000 dollars! People who already owned Bitcoin certainly enjoyed this fact. What's more, these and other events have had a major impact on the increased registration of new users on the stock exchanges, which will be mentioned later in the article, and mass purchases of Bitcoin online.
The memorable day for all Bitcoin owners was December 17, 2017, when the price of this cryptocurrency reached a record level of over $ 19,000 according to CoinMarketCap. On some crypto exchanges, there were also sales offers that exceeded the level of 20 thousand dollars. When Bitcoin reached a staggering price, many new people interested in buying Bitcoin appeared. Their number was so staggering that many exchange offices and cryptocurrency market exchanges closed the possibility of registering whether to purchase Bitcoins using both a credit card and payment gateways. The increased number of transactions also led to blockage on Bitcoin's blockchain as well as increased fees.
After sharp increases in December last year, the price of Bitcoin in January began to slowly but steadily decline. Many of the traders thought it was a long-awaited correction, and the price would jump again soon. Those less experienced, and by sudden popularity many of those appeared, began to panic and sell their cryptocurrencies completely leaving the market. This only deepened the poor state of Bitcoin. Nevertheless, it should be noted that before Christmas on December 24, BTC also dropped. If you're an experienced cryptocurrencer, you know that the Chinese have a large percentage of Bitcoins and many mines. On February 16, the Chinese New Year begins, which is an important holiday for this community, so you can also explain sudden falls. Confirmation of this hypothesis may be a comparison of the exchange rate from the same period a year earlier and two years earlier.
There is nothing else to do but to calm the panic ones. According to the tendency, after such a large correction, there should be huge increases in the price of Bitcoin. What's more, the currently low price favors the supply of this cryptocurrency. You can do this through our exchange office by paying with a credit card. Thanks to this, you can be sure that you will get your Bitcoins quickly and without any problems.