Cryptocurrency is independent and decentralized because it is developed on a blockchain system that gives full freedom to the owner to control his digital assets like Bitcoin. All other cryptocurrencies other than crypto bitcoin are called altcoins. Blockchain introduces a parallel system to a fiat currency whose impact is like a blessing in disguise for investors and traders.
This crypto started in 2009 with a nominal value and now in 2022, its bitcoin price is in thousands of dollars. This means that cryptocurrency is an emerging currency that is evolving rapidly in social as well as online communities. In the beginning, people are reluctant to buy crypto and after passing some time they realize that they have missed the life-changing opportunity to extract the million dollar profit.
In fact, the fiat currency is affected by inflation and deflation, and other numbers of social and political factors. But in most cases, the value of fiat currency is decreased due to recessions. While in cryptocurrency the matter is a little bit different.
The biggest cryptocurrency in the world is available on all crypto exchange and kucoin is one of them. Kucoin control panel displays the live graph of crypto price variation through the hours, days, months, and even a year. This live graphical representation on the kucoin dashboard of price helps investors and traders to make proper analyses before making a trade or decision. A dedicated section of the blog on the kucoin website shares valuable content on daily basis related to market analysis, strategy, and trends.
Unlike fiat currency, crypto is not controlled by the central authority so there are factors that trigger bitcoin prices in the online market.
Supply of bitcoins
The supply of bitcoin crypto in the market is well defined and does not exceed that limit. Only a small portion of that limit is issued per year. As crypto bitcoins are mined 24/7, in this view one research shows that almost 900 crypto bitcoins are mined on a daily basis.
Demand of bitcoins
Demand really matters to set the price of any cryptocurrency. If the circumstance is feasible for the online market then investors and traders demand more for that coin. Which triggers the price of the cryptocurrency.
Market rumors and news
Investors and traders keep eye on the market news updates and rumors as well. Because the news and rumors affect the market conditions very loudly. If the news is positive and rumors are in favor of the market then this is an indication of the rising prices of cryptocurrency and vice versa.
As discussed above the crypto are independent and not controlled by a single authority then the intervention of governments is not bearable for the online market. As the governments make the rule and regulations to control the crypto but in vain. Online cryptocurrency also retaliates against the rules that are defined by the governments. Despite that, Dubai is making policies to legalize crypto in their country which is in favor of cryptocurrency authority and that sign is the trigger of price upwards.
Political as well as social influences impact the price of any crypto. Any tweet, Facebook, or Instagram post of any celebrity about crypto skyrockets the prices. For example, a tweet from Elon Musk activates the boom of dogecoin price within a couple of minutes.
Every cryptocurrency provides some kind of solution to its users. For example, Solana provides speedy transactions, altcoin provides low cost, and Ethereum provides you NFT at their network. In the same way, the crypto becomes successful and triggers the price as it gave more advantages to its holders.
Conclusively, the bottom line is that multiple factors are persistent in the market that assists in zig-zag the price chart of any crypto. Investing in bitcoin is not too risky because they are stable currency in the online market. But the right investment at the right time makes you a millionaire in a couple of hours. A mature person consults professionally in that market to take his advice and tips and tricks before stepping into making a trade or investment. Taking thoughtful steps in the crypto market pays you as much as you think.