Bitcoin is the most usable currency globally, and by increasing the demand, the price of bitcoin is also increasing. The price of bitcoin depends upon different factors such as demand and supply, internal and external factors. Bitcoin is a volatile currency that means every second, the value of bitcoin fluctuates. This year is the growing year for bitcoin because, at the initial stage of 2021, the price of bitcoin was approximately 29,000 dollars that were very low at that time. Still, the price started increasing with time, and now the current price of bitcoin is near 60,122 at the time of writing this article. There are many reasons for bitcoin value fluctuations, and in this article, we will discuss the latest data and the reason behind it.
Bitcoin in brief:
Bitcoin is a very popular cryptocurrency worldwide, which means anyone can spend and receive bitcoin all over the world without paying any extra fees to third parties such as banks and other financial institutions. However, Bitcoin is a digital currency that means it is not available in physical form, and if you want to send and receive bitcoin, you need a virtual bitcoin wallet.
Bitcoin falls nearly $60,000:
Since this year (2021) is the growing year of bitcoin, which invested money at the initial date of this year, earned a lot of profit from bitcoin. On 8th November, the price of bitcoin touched up to 67,585 dollars, which is the highest peak ever that bitcoin touched. Still, the current price of bitcoin at the time of writing this article is 60,122 dollars, which means it decreased eleven per cent, a considerable decrease. The first price that bitcoin touched was $67,585, and after that, it went down to the regular price of $65,000 - $64,000. If we compare the bitcoin price with this amount, it decreases from four per cent to five per cent.
The reason behind falling price:
According to the bitcoin data analyst, there is no evidence about the bitcoin price fall. The falling and rising of bitcoin value depend upon different factors, and the main factor is demand and supply. When people start selling bitcoins, the price decreases, and when people start buying bitcoin, the price increases. Many factors influence the demand and supply of bitcoin. It includes the latest trendy positive or negative news, social media posts, recent tweets about cryptocurrency, government announcements. But according to the research, researchers did not find any proof or reason behind falling the bitcoin price by four to five per cent. For more details, visit online trading platform bitcoin-x.net
There may be a reason for the falling bitcoin price; some people have had it since the starting year 2021, and they hold it as an investment. The initial year of 2021 was 29,000 dollars, but it increased to 65,000, a 55 per cent gain. So they got 51 returns on their investment, and they withdrew their investment, and the price started decreasing. In simple words, when the price increased to 65,000 dollars, bitcoin investors started selling their bitcoins to withdraw profit, and you know that selling means a fall in price; hence, the price of bitcoin started falling 60,000 dollars. We are not sure if it is because there is no evidence of falling in the price; it is merely a perception for falling the bitcoin price up to 60,000 dollars.
How the price goes up in the previous month:
A few months ago, there was an announcement for the taproot up-gradation, and in concern of taproot up-gradation, received many votes. The bitcoin price was going at their usual range, and suddenly the price of bitcoin started increasing and the primary reason for the sudden growth was an upgrade. Since bitcoin is a more popular cryptocurrency than other currencies on the network, there are a lot of limitations such as privacy concerns, security, high transaction fees, heavy transactions, cloud storage, and lot limitations. Taproot is the new version of bitcoin that will improve the privacy of bitcoin. That means no one can judge the bitcoin transaction easily, whether it is single or multiple, bitcoin security will be tighter, and algorithms will be more complex. Bitcoin transactions cost will reduce due to this upgradation, and people will start buying bitcoin because people know that after the upgradation, the price will increase. They will earn by selling the bitcoin after upgradation when the price will increase.