Bitcoin (BTC) is the most popular cryptocurrency that you can buy today.
At any time, Bitcoin’s value can go up. In addition to this, it can also go down. In 2022, this has already happened a lot, and this will likely be the case in 2023—but why?
When there’s a price increase or drop in the world of cryptocurrency, there’s almost always a reason for it. Occasionally, there are multiple reasons.
Listed below are the top reasons why Bitcoin’s value changes throughout each year. If you’re a beginner investor, it’s absolutely crucial that you are aware of them.
No regulation
Unlike the US dollar (and other traditional currencies), Bitcoin is not regulated or controlled by any bank or government. What this means is that the classic rule book has been thrown out of the window. Instead, investors and everyday people have the freedom to do whatever they like.
For some, this is a major positive and one of the main reasons why they invest in Bitcoin in the first place. However, for others, it’s a major point of conflict. After investing in Bitcoin, many businesses and people will then suddenly back out and sell their tokens in large numbers, which then leads to value drops. Quite simply, the lack of regulation is off-putting for them.
If you ultimately decide to invest in Bitcoin, make sure to check the Bitcoin stock price at okx.com each day. This will allow you to stay up to date on Bitcoin’s price and whether it has gone up or down over the past 24 hours. If it suddenly goes up, then you know you have a great opportunity to sell your tokens and make a profit!
Mainstream endorsement
If any party in the mainstream—from a news outlet to a major celebrity—endorses Bitcoin, then it nearly always leads to a boost in value.
Tomorrow, let’s say that Elon Musk decides to start accepting Bitcoin for Tesla models (again). If he were to do this, it would lead to hundreds of thousands of people investing in Bitcoin. This would be even more powerful if Musk were to say that you can only buy the new Tesla model using Bitcoin—not traditional currency.
New cryptos on the market
Each year, hundreds of new cryptocurrencies enter the market. Some flop, whilst others quickly start to gain traction. When this all happens at once, it can lead to Bitcoin momentarily dropping in value.
When 2023 rolls around, it’s entirely possible that a new crypto will enter the market and completely blow Bitcoin (and other top cryptos) out of the water. However, it would take a huge marketing campaign and endorsement plan to achieve this.
Demand
When the demand for Bitcoin goes up during a particular week or month, then its value automatically increases, too—that’s the nature of trading. In the past, there have been moments when the demand for Bitcoin hit extreme highs, such as in November 2021 when Bitcoin reached a US dollar value of $65,000 per coin. Bitcoin is no longer this valuable, but it highlights how volatile the modern crypto market can be.
