The main reason why the market of cryptocurrencies is so popular is related to frequent changes in prices. Also, there is huge competition in this market, but it seems as most of these options are following trends related to Bitcoin. Bitcoin is the leader in this market and the most popular trading asset. The current value of BTC is around $47,000.
However, the prices are changing almost every day, which makes it so popular for day traders in the first place. You can earn a lot by making the right moves. Still, it will require a lot of analyses of the market to determine the right moment for buying or selling. In that matter, you should keep track of various factors that can influence this market. If you want to read the most recent news related to cryptocurrencies, check out cryptobenelux.com.
The main issue of making an accurate prediction is related to the fact that there are so many factors that are affecting the whole market and a chance for new circumstances as well. The best example is related to the movements of prices recently. The pandemic is causing financial issues in the whole world, and there is even a chance for a new recession.
That made people more interested in the decentralized system that Bitcoin represents.
Also, the actions of highly influential investors like Elon Musk had a huge impact. After he announced that his company Tesla will start accepting BTC and that he invested $1.5 billion in this cryptocurrency, the price has reached a record of over $63,000 in short time.
Still his next move was the decision to withdraw the ability to use BTC in Tesla, and discussion about the impact on the environment that mining is causing resulted in another big drop in value of over 50%. Currently, it seems like the value is more stable. According to many experts, it can become much higher as well.
Price Movement of BTC
Bitcoin was introduced in 2009, and it needed a few years before people started paying more attention to this blockchain-based currency. During 2010, the price of this unit was only around 1 cent. However, things started to change in 2012, when more people started to buy it and consider it as a trading asset with high potential. Also, we can see the first examples of high volatility, because the price was jumping from $2 to $30 and back throughout the whole year. In the next couple of years, the situation remains the same, but the peak price is becoming higher by reaching over $200 for the first time in 2013.
There was the first significant breakthrough during 2014 when the price has reached the value of over $700. After that, the price started to rise continually after reaching the peak value in 2017, when it was near $20,000. That was the moment when the whole world started to talk about the potential of Bitcoin and other cryptocurrencies.
A lot of people will say that it was a bubble, but it was only related to the misbalance of supply and demand when much more people were interested in selling than buying at that moment, which caused another drop. In the years after, the price was stable with some level of fluctuation between $7,000 and $10,000. The year 2023 was crucial when people started to become more interested in alternative markets and decentralized currencies as well.
What Are the Predictions?
As we already mentioned, the issue with most of these predictions is that factors are changing very fast. Currently, the chances are very low that strong economies will ban Bitcoin, but that situation will surely have a huge impact. Moreover, it is crucial to focus only on predictions shared by experts in this area. You should keep in mind that some investors might try to influence the market by sharing different analyses that are not accurate.
We can notice that many predictions from experts came out as true. A lot of them said that the price will again reach $50,000, and the current price is near that sum. Moreover, they are claiming that it will continue to rise and that it might reach the new record by the end of 2023. Furthermore, the analyses are saying that it might reach stability at around $70,000, at least when it comes to the year 2023.
Moreover, you should know that the number of Bitcoin that can be mined is limited to 21 million units. Even though the process will last for another 100 years, the technology might make it even faster over time. The limitation is a great advantage because there will be a limited supply as well. Depending on the demand, the price can only go up in the future, especially if more people decide to integrate it as a standard payment option.
According to some experts, it might reach a value of over $400,000 in less than 10 years. The fact that it is limited makes this option have so high potential. There is a chance that we will trade by using small portions of BTC, or they might even create a separate unit that will resemble the 1000th part of it, or even smaller instance depending on the price.
When it comes to potential limits related to the value that BTC might reach, there is no way to include any form of limitation because the market is responsible for the creation of prices. There is always a risk that some other option can become more popular in the future, which will interrupt the continual increase of prices of BTC, but the chances for that are very low.
If you are interested in investing in Bitcoin or any other cryptocurrency, the most important thing is to pay more attention to various factors. You can learn more about those factors by constantly finding more information and reading different analyses. There are many indications that the prices will become much higher, but you should never take things for granted.