Why Does Bitcoin Fluctuate?

To Feel or Not to Feel

Bitcoin’s value is based on a lot of things, but mainly it seems to revolve around emotions. Someone gets arrested … price goes down. President gets COVID … price goes down more.

Benefits of Fluctuating Prices

Now, whether the price is going up due to good news or down due to bad news, the bottom line is that it’s ALL good news for short-term or day traders. People who can learn to read the trends know when to buy or sell so they’re profiting off price volatility.

Time Heals all Volatility

You know what else is interesting? Over time, Bitcoin’s price volatility has lessened. It’s like Bitcoin has gone from a child throwing tantrums to a pre-teen who might sulk, but tends not to scream and cry. We can probably expect the unexpected during the teen years (lots of door slamming and breaking of rules), but after that, if the metaphor holds true, presumably fluctuations will decrease more and more.



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Coin Cloud

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The world’s leading operator of two-way Digital Currency Machines (DCMs), more advanced Bitcoin ATMs.