Will Bitcoin React to The Economy and Show Upward Trend?
On Oct 08, 2020
The market-leading cryptocurrency-Bitcoin has been not too much volatile recently. Can we expect a price increase?
Bitcoin displays a steady graph in recent days. There was not too much increase or decrease. The highest price was $11200, and the lowers price was around $10100. We cannot say that $1000 is not much for bitcoin. It is the trend from September 4 till October 8. If we compare this period with history, we will find that from June to August, the Bitcoin price was not so much volatile. High demand for bitcoin and an enormous increase in the value came after this period, and prices increased above $12000. Can this be precedent for the current period? We can see that Bitcoin owners “hodling” their coins, and they are not hurrying to sell them. Actions of investors proves their optimism about Bitcoin, and they are not hurrying to sell their Bitcoins.
Affect of Economy on Bitcoin
We can correlate the activities in the economy with the price of Bitcoin. As one of the crucial indexes, the S&P 500 shows a steady increase in recent days. The graph displays that from September 24th index increased from $3200 to $3400. Considering it will increase the earnings, then people can buy additional assets. If the economy does well, then investors will be more prone to buying stocks and bonds. This purchasing will probably affect the Bitcoin. People think of Bitcoin as a saving instrument, and they will buy it if they think its price is stable and they can sell it for profit in the future.