All the fluctuation in the price of commodity and investments,in essence, is a reflection of the change in the supply and demand, and Bitcoin would be no exception. The main factors that cause fluctuation in Bitcoin price are sellers and buyers in the market. Bitcoin itself is a brand-new thing that has not yet been legalized and widely-recognized, therefore, there are controversies over its value and worries about its future stability. This article is going to investigate some important factor that caused fluctuation in Bitcoin price.
1. The governments attitude toward Bitcoin.
When the governments claim that they will ban or look at activities related to Bitcoin seriously, it could show a slump in the price at once. In contrast, if countries, especially some influential countries introduce supporting rules, the price of Bitcoin could go up. For example, both German’s statement to legalize Bitcoin as a financial tool and the U.S. federal court’s decision to legalize it, to some extent, grow people’s confidence towards Bitcoin value and it drives its price up sharply.
2.The environment in Bitcoin industry.
As Bitcoin payment or activities are still be limited on a small scale, therefore, scandal in one trading platform may influence the price trend. In earlier 2014, Mt. Gox, the biggest Bitcoin trading platform in the world, was forced into bankruptcy for hacking and poor management. It not only brings huge loss to Bitcoin holders on the platform but also causes direct slump in the price and decreased confidence towards the coin.
We also analyzes the causes of the dilemma of crytocurrencies in the previous article,
please click here to see more https://blog.csdn.net/hencise/article/details/80257526