The cryptocurrency depends on many factors for its price to go up or down
Cryptocurrencies are a recurring theme for new investors. The digital part is what moves them the most, besides having high values at the beginning.
Bitcoin, the most popular crypto in the world, started with a high value. Just over 100 thousand dollars was what it was worth, but it did not last for long.
As the months went by, Bitcoin fell to below $30,000. But now, a slight rise broke that streak of just over six months and it finally rose above that amount.
Risk factors such as inflation, world geopolitical crisis and local monetary policies are what make its price go up or down.
Likewise, the stock in the market is something that also influences the price of the cryptocurrency itself.
“Like all risk assets, cryptocurrency prices this year have been disproportionately driven by the war in Ukraine, inflation and the outlook for Federal Reserve policy (in particular, the tapering schedule),” commented Ben McMillan, CEO of IDX Digital.
The consumer price index also has an influence within the price of cryptocurrencies.
Having a high index, with a U.S. increase of 8.3 percent over last year, makes investing in these types of coins unattractive to people.
New assets, such as Terra and Luna, also cause the price of this cryptocurrency to be affected.
Being two stable cryptos, Bitcoin lose value because investors will only see their money lose and will not make a profit.
Despite the fact that this year it reached a value of more than 40 thousand dollars per Bitcoin, the falls have been greater than the gains and that is why the prices of the most famous cryptocurrency continue to fall.
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