If you’re wondering if the price of bitcoin is steadily decreasing, you’re not alone. This speculative currency is widely used by traders and investors for profiting from price swings. While volatility can be problematic, it’s precisely this behavior that makes cryptocurrencies attractive to the public. That’s why a number of traditional brokers and dealers have started to recommend bitcoin as an investment option. If you’re wondering if the price of bitcoin is steadily decreasing, there are several reasons why.
First of all, cryptocurrency prices fluctuate based on the news. Cryptocurrencies, including bitcoin, are global, 24-hour markets. That means that the price of Bitcoin can be influenced by news announcements or political statements from a faraway country. Many of these announcements are in Asian languages and, therefore, may not be readily available in English. This adds to the volatility of the currency. Therefore, it’s best to keep an eye on the prices and volatility of cryptocurrencies to avoid a loss.
A second reason that bitcoin volatility is declining is because it’s a nascent asset, unlike centuries-old assets such as gold. Bitcoin is in its price discovery stage, which is the most volatile period in an asset’s lifecycle. By using the month of March 2020 as the end of the COVID-19 pandemic, volatility is statistically significant. However, the trend has stalled after the first hype in Bitcoin around the end of 2013 and is steady from April 2014 to February 2020.