When we come to 2022, you will remember that many analysts and investors talked about the target of 100 thousand dollars for Bitcoin. Well, bitcoin scared off many investors with its rapid collapse and falling below the $33,000 level.
Bitcoin, which is the most demanded among cryptocurrencies and traded with billions of dollars, started to storm in 2022. Especially with its rise and fall, it upset millions of investors.
So, how does bitcoin, which falls to the level of 31 thousand dollars, increase or decrease?
The value of Bitcoin, one of the leading cryptocurrencies, is determined by the last Bitcoin transaction made on the exchanges. The ever-changing demand has a great impact on this issue. In other words, the displacement of the opportunity and pressure balances in the trading channels directly affects the value of Bitcoin. While the prices are expected to increase if the pressure is supported by the buyer side, it would be correct to say the opposite for the seller.
The media can positively or negatively affect the value of Bitcoin. In cases where the news creates uncertainty, fear and/or suspicion on users, an environment of panic may occur and the selling pressure may increase and cause a decrease in Bitcoin value. To date, the value of Bitcoin has decreased nearly 400 times due to the influence of the media. Media influence can create an atmosphere of panic and selling pressure, as well as increase the value of Bitcoin by positively affecting the markets. The news could allow Bitcoin to spread to a wider audience, resulting in an increase in buy orders and an increase in Bitcoin value.
Approaching the highest value of Bitcoin value may create selling pressure on Bitcoin owners. In case of selling pressure, Bitcoin value may fall and fall towards its previous high. However, when Bitcoin value exceeds its historical peak, it can have a positive impact on the public. In this case, buying opportunities in the markets can and will increase the value of Bitcoin.
In the economic or political crises that may occur in the countries, the nominal currencies of the countries lose value. In such cases, people may turn to alternative currencies because they do not want their money to lose value. Bitcoin is expected to replace money as a medium of exchange in the near future as it is today. Today, Bitcoin, which contains the features of money, which is the medium of exchange we use to sustain our lives, is becoming more popular and more concrete in minds and becoming a preferred option in transactions.
It was announced that a total of 21 million Bitcoins will be produced. About 88% of it is produced today. Bitcoin halving occurs every 210,000 blocks and the amount of Bitcoin that can be mined is halved. When Bitcoin production first started, 50 Bitcoins can be produced in 10 minutes, while 6.25 Bitcoins can be produced every 10 minutes at the moment. A decrease in the amount that can be produced in 10 minutes can cause a decrease in supply, and a decrease in supply can cause an increase in value. Therefore, over time, the value of Bitcoin may reach higher values.
Interest in Bitcoin may increase in cases where important institutions accept Bitcoin, declare that they have Bitcoin in their safes, or support shopping with Bitcoin. Although we did not see a big increase after a company like Tesla and many other institutions announced that they would buy Bitcoin in the past years, the FED has pushed the crypto money market to the bottom with its recent interest rate hikes.
What does Bitcoin rise depend on?
In simple terms, when the demand for Bitcoin increases, the price of Bitcoin rises and when there is less demand, its price falls.
In fact, the paradigms we all know in economics are valid in the crypto world. There is a progression in Bitcoin that is directly proportional to supply and demand. Although there are many reasons for the unstable situation in 2022, there is one thing that everyone has an opinion on, that the interest rate decisions taken by the FED directly affect cryptocurrencies.
The value of CRYPTO coins is determined within the supply-demand balance from users. Like stocks or commodities, they gain or lose value during exchange, depending on immediate supply-demand pricing. In other words, the more demand a cryptocurrency is, the more valuable it becomes.
Will Bitcoin increase?
Ehrlich predicted that Bitcoin would exceed $100,000. Antoni Trenchev of crypto lender Nexo also agrees with Ehlich. According to Trenchev, Bitcoin could rise by the middle of 2022 and reach up to $100,000. However, no one is a prophet and it is necessary to invest in the right way by taking slow steps in this market. I recommend that you make a decision after a detailed research while purchasing a product.
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.