Bitcoin is still in a bull market phase that has made the cryptocurrency the new digital gold of our time. Moreover, mainstream investors alongside retail investors are looking to get BTC. If you’re also new to the crypto world, and you still want to invest in BTC during this bull run, here we cover everything you need to know about Bitcoin’s bullish cycle.
The Volatile Price of Bitcoin
First, you need to understand how Bitcoin’s price is affected by supply and demand. Owing to the fact that, this is a decentralized cryptocurrency, the only factor that essentially influences the price and whether it’s going up or down is the ratio of the supply and demand.
So, there isn’t a central bank that will control the supply in order to keep the inflation rate down, however, there is a protocol in the blockchain network that cuts the inflation rate in half every four years.
This event is globally known as Bitcoin halving. The halving is also known for boosting the price of Bitcoin because the cryptocurrency enters are bull market phase afterward.
In fact, most investors have made their profits during the bull market phases thanks to Bitcoin halving. The latest example is the current bull market stage that has started after the halving in May 2020 when the reward was minimized to 6.25 with BTC from 12.5 BTC.
The main reason why this protocol has such an impact on the supply is that it makes the entire mining process more time-consuming and the mining costs surge because the miners are people who work on their own computer systems using electricity and computing power in order to get the block reward by processing the blocks of transactions. So, this event makes the supply smaller compared to the rising rate of demand.
Automated Trading Sites
The rise of automated trading performance has also helped with the surge of the price because they make trading accessible to investors that are still beginners or don’t have a lot of knowledge about trading. One great example is BTC Storm website. This is an excellent trading site for newbies in this area because the automated trading system will do most of the work for you. Also, there is a demo account that allows you to familiarise yourself with crypto trading. If you want to register, deposit at least $250.
Demand for BTC
When it comes to the demand, you’ll be glad to know that as Bitcoin is gaining popularity and more companies are supporting BTC. The demand is also growing, especially when there are huge investments in BTC.
Furthermore, Bitcoin is considered a liquid asset because of the availability of online trading sites which are the main marketplaces for the exchange of cryptocurrencies; investors can quickly change their position, sell or buy BTC.
So, at any given moment if there is a higher volume of BTC being sold or bought, this will affect the price. Also, the trading volumes of Bitcoin are still relatively small even with the huge demand for it, compared to other traditional currencies. This is why thanks to the enormous investment of $1.5 billion by Elon Maks the price of Bitcoin soared past $60,000.
Conclusion
In conclusion, the price of Bitcoin was continuously rising since the halving in May 2020, so it went from $9.999 to over the $18,000 in November, in a span of six months. Every month it would reach another milestone, but the main records regarding the price of where, as we said in November, then in December it hit $20,000. The following month it broke $40,000 in January, $50,000 in February and it had surpassed $60,000 in March. Overall, this is still an incredible bull market phase, and it is a great time to consider investing in BTC.
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