Why Is Bitcoin’s Price And Its Popularity Rising?

Jump to page contents

Why Is Bitcoin’s Price And Its Popularity Rising?

Bitcoin is the cryptocurrency which put blockchain and digital assets in the limelight. The currency, created by the mysterious Satoshi Nakamoto, was first invented in 2009, but it gained worldwide popularity in subsequent years, as its value continued to increase beyond anyone’s imagination.

Today, the volatile and popular digital asset continues to make major headlines on a weekly basis. More people are getting interested in learning how to make money with Bitcoin, tempted by the success stories often popularised on media channels. Concurrently, warnings from state agencies and high profile traditional market investors have also dampened some of the enthusiasm.

Since its inception, the price of Bitcoin has always had a general upward trend. Many crypto investors use traditional market strategies to know how to invest in Bitcoin. In fact, every responsible investor should learn how to read crypto charts before making any investment. As a result, the general consensus amongst these investors is that the price of the currency will continue an upward trend.

Reacting to global events

Generally speaking, Bitcoin and other cryptocurrencies are not supposed to fluctuate when an unrelated event occurs in the world. Since they are de-centralized currencies they are not pegged to any central bank or government. However, ultimately the currency is given value by human beings, and human beings are affected by what goes on in the world. 

Certain world events or even smaller occurrences, such as Bitcoin or Blockchain-related conferences can have a short-term impact on the price of Bitcoin. Right before such events, the price of Bitcoin tends to rise, fueled by increased interest by attendees. This is normally followed by a dip after the closure of the event. Whilst these small fluctuations are commonplace even in traditional stock markets, they are sometimes recommended as how to make money with Bitcoin.

Positive news coverage and increased interest in cryptocurrencies can also help explain the rise of Bitcoin. This is one reason why all investors should read cryptocurrency news on a daily basis. Taking the recent Binance hack as an example, the price of Bitcoin dipped right after the announcement of the loss, but once the CEO confirmed that no trader funds were lost the price rose again.

Regulation and legislation

Whilst diehard cryptocurrency fans bank on this system never being regulated, the masses tend to prefer some form of structure and control. Forward-thinking governments and agencies from across the world have either enacted some form of legislation or are in the process of doing so. In this way, they are legitimizing cryptocurrencies, and this increases their popularity.

As any Investment 101 book would tell you, if something becomes more popular and there is a growing demand for it but a limited supply, then its price will rise. This rise in popularity and price is further fuelled by major organisations, such as Facebook or the IMF, which are seeking ways to utilise Bitcoin and other digital currencies in their operations.

Register for Latest Updates & News

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar Guides

Latest Guides

What are Market Orders and How to Use Them?

When it comes to trading in the financial market, whether you’re trading CFDs or buying the actual underlying asset, there are several orders you can use to execute your trade. These execution methods entirely depend on your trading strategy, and they can broadly be categorized as either market orders or pending orders. The primary difference […]

18 January, 2022

A Comprehensive Guide To Reading Candlestick Charts Effectively

Technical traders use various tools to analyze the global financial markets. With the advent of technology and the internet, traders can easily access these valuable trading tools for free. However, the problem could be choosing the right and comprehensive tool among the lot. For instance, novices can get confused with what chart to pick to […]

5 January, 2022

The Role of Fundamental Analysis

Like any other financial asset, trading cryptocurrencies require a well-defined strategy. This strategy will require a never-ending learning process. The three major analyses you’ll need to conduct are fundamental analysis, technical analysis, and a third but relatively unknown one, Sentimental analysis. The sentimental analysis is a measure of people’s sentiment towards an investment class. It’s […]

29 December, 2021

Key Drivers of the Crypto Market

The cryptocurrency wildfire has swept throughout society, and it has reached the extent where every fight against crypto has only stoked this fire. This new craze has not spared any sector of the global economy, with the sector of every nation adopting new strategies to work with digital currencies. In this article, we want to […]

16 December, 2021
Cryptocurrency,Trading

How to Develop a Crypto Trading Plan?

Have you ever been burnt by FOMO (fear of missing out)? Perhaps, you saw a trending token on social media that’s already rallying, and you bought, only to be burnt by a rug pull. If you can relate to this scenario, this article is for you. If you can’t relate, this article will help you […]

1 December, 2021
Cryptocurrency,Exchange Platforms

Top 9 Crypto Exchanges by Volume in 2022

As the crypto market continues to gain increasing mainstream popularity, crypto exchanges play a critical role by ensuring a constant supply of liquidity. There are over 500 crypto exchanges, with many more launching almost every other day. While many factors determine the best crypto exchange, the volume has always been the major determinant. Volume refers […]

11 November, 2021
Altcoins,Crypto Mining,Cryptocurrency

What is Staking in Crypto?

Let’s Define Staking Crypto staking can be likened to depositing your money in a bank. It simply means locking up your assets in exchange for rewards or interest. In other words, staking is when you commit your crypto assets in order to support a blockchain network and confirm transactions. Crypto staking is common with cryptocurrencies […]

4 November, 2021
Blockchain,DeFi

Which is the Fastest Cryptocurrency?

Cryptocurrency is now a global phenomenon that has enjoyed so much attention in virtually every sphere of human existence. From politics to banking, and even space shuttle, big corporations are now accepting digital coins as a form of payment for their products and services. With the number of digital currencies in the crypto space, there […]

25 October, 2021