The market of cryptocurrencies is very attractive for investors since it offers them a chance to earn high profits by finding the right type of token or coin. Bitcoin is still holding the highest popularity, which is not a surprise considering its current price of around $35,000. The first month of 2024 represents a great start for this currency since it manages to reach new records in value. The interesting fact is that many people are talking about this virtual currency even though they are not so familiar with its potential and the processes behind it. If you are interested to learn more about the full potential of Bitcoin, visit crypto-news-flash.com.
Moreover, the internet is full of articles related to BTC and many other cryptocurrencies, where you can read about their potential, usability, benefits, downsides, and more. However, if you are trading on the crypto market, it is very important to find reliable sources where you can read various analyses that could help you to make the right moves. Even though no one can be completely sure and accurate about the price of Bitcoin on the market in the future, there are some sources where you can find professional analyses from experts who are using their knowledge and experience to create more accurate predictions.
Source: The Motley Fool
Read Professional Analyses
First of all, you have to know that there are numerous things that you can find online about any topic. In that matter, you should learn how to distinguish stories from amateurs and those written by experts in some field. Since Bitcoin is such a popular topic today, it is not a surprise that there might be hundreds of articles that are stating all sorts of predictions, but most of them are not based on any statistics or factors that are crucial for the determination of value on the market. On the other hand, experts in the fields of economy, trading, and marketing will use various measurements, factors, and previous examples to create a prediction that is most likely to be true.
However, even they are not capable of making a completely accurate prediction. For example, we can find various studies where one could say that the price of BTC in the next 5 years will go over $100,000, while others might state how the price will become more stable around the current value. In that matter, it is necessary to learn more about the factors that determine the price and check which one of them is being used in the predictions.
Factors That Determines the Price
Since you can’t be sure whether some prediction is accurate or not, it can be beneficial to learn more about the market of cryptocurrencies and all of the factors that are influencing the price changes. Some of the most important are:
- Supply and Demand; This is a simple factor used in every industry where you can calculate the potential value of any product by checking its potential to become more popular. For example, if the demand is much higher than the supply, the price will become significantly higher.
- Popularity; The media is having a great effect on the popularity of Bitcoin, which is making it more valuable as well. Also, a lot of people who were not familiar with a blockchain system before could hear about this technology, along with the available cryptocurrencies, and become interested in investing in the end.
- Geopolitical Situation; Like with many other markets, the issues related to global politics can also trigger big changes in the prices of BTC and other cryptocurrencies. However, the crypto market is not following the same trends since it is decentralized, and that means that its value might become even bigger if some countries get penalized by sanctions because their investors will choose to invest in crypto to protect their assets.
- Official Regulations; Another important factor is related to the legality of the crypto market in the world. While the current situation where Bitcoin is illegal in several countries like Bolivia, Vietnam, and Morocco, is not affecting its value in any way, making it illegal in some countries with a strong economy like Japan or the United States would have a huge impact on the whole crypto community.
- Recession; According to the creator of Bitcoin, Satoshi Nakamoto, the first intention and motivation while creating this system were to help people to protect their assets during the economic crisis in 2008. Considering that there is a chance for the global economy to facing another recession because of the coronavirus pandemic and all of the measures provided, the value of BTC could indeed become much higher in the future.
Source: CoinDesk
Conclusion
As you can see, the chances to predict the accurate price of BTC in the future are quite complicated, and you should take each of these predictions with a dose of the reserve. Also, you have to be aware that some online exchanges might be paying some experts to share their claims about how the price will surely become higher since that might attract more people to invest in this digital asset. On the other hand, some of those experts already made some statements in the past that came out as true. Therefore, the best way to get informed about the current state of the market and its true potential is to find a reliable source.
Nevertheless, even if some professional managed to predict the current state, that doesn’t mean that he could make a mistake for another prediction. Therefore, if you are interested in investing, be sure to determine your budget and avoid spending too much to prevent excessive losses in cases that the prices are not going in the desired direction. In the end, the predictions of people who are experienced and educated about the market and blockchain technology are made by using the current factors, which means that there is a high chance for them to come out as true. However, the market is constantly evolving, and there is always a chance for some critical changes that could influence the price of Bitcoin as well.
