The Bitcoin market is like any other Forex market where one buys another currency. But unlike currency which is a system or type of money that particular country uses, Bitcoin is a completely digital currency generated through a “mining” process achievable with the use of mathematical computations. For this reason, it is created without being minted under the confidence of any nations’ economic and financial status. Those who cannot “mine” Bitcoin themselves, you can buy or sell Bitcoins at a price through online exchanges like Coinbase. The way the Bitcoin market functions is similar is to any goods, products, or services offered in business, prices fluctuate depending on the demand and supply.
In July 2010 Bitcoin had its very first real price increase when the valuation went to $008 from $00008 for one coin. Late-2017 Bitcoin price peaked to nearly $20,000 but as of April 2020, it averaged to about $7,000. The growth of its price went to around $10,000 by June 2019 unfortunately by the end of that year it fell back down to $7,000.
Bitcoin price by market value is now trading at $7,596 so it is up 10% for now. Its market value is highly dependent on how it becomes a part of the financial market, public interests, or investors trading Bitcoins and comparison to other cryptocurrencies' performance. Bitcoin is the world’s most successful and most used cryptocurrency and on exchanges spots like Coinbase the price is settling at $7,584, this is an indicator of a positive outlook. Gearing is back and a trigger of stops on the break of $7,500 is sending Bitcoin price all the way up to the $7,800 price.
According to statistics based on the information of currencies, market, and exchange registered at Coinhills, US Dollar is the most traded National Currency for Bitcoin at 76% and the Japanese Yen follows at 14%. The US Dollar has exchanged around 615,686 Bitcoin volume within 24 Hours as of Sun 26th April 2020 09:55:32 UTC, this could the best explanation as to why the default Bitcoin pricing is in US Dollar in the exchange market. Below are the Bitcoin prices of other national currencies used in the Bitcoin market.
Japanese Yen ¥ 816,650
Chinese Yen ¥ 54,698
Russian Ruble ? 554,658
Euro € 7,026
British Pound £ 6,162
This week’s rally has got some keen observers wondering if the crypto derivatives market is amplifying Bitcoin price movements, considering the price changes are sudden. Bitcoin traders wonder if Bitcoin can maintain its gains, no one knows whether this will hold for sure. It will keep coming back in the headlines with any price changes in the market and the investors will keep guessing.
As Bitcoin goes up, so do other crypto assets, for instance, Ether trading went up 3% in the last few days of trading on Coinbase. Other digital assets in the green were Ethereum Classic, Cardano, and Stellar. The current trend in the Bitcoin market is a clear indicator that there are new investors putting fresh money into the market which is getting distributed into crypto.
Some advice for beginners trading Bitcoin is that there are safe and easy places to start when it comes to getting a Bitcoin wallet. Many trusted websites and software wallets are available because they are directly connected to a Bitcoin exchange, to simplify selling and buying. Blockchain.com is one of the many Bitcoin exchange wallets.
Bitcoin has a definite limit of 21 Million which is why it is so unique. The number of Bitcoins released relative to the previous cycle gets cut in half every four years. Its price increases if the demand for Bitcoins surpasses the rate at which it is produced. As the total number of Bitcoin in the market creeps and approaches to the 21 Million marks, in the coming years the prices will hit higher prices such that nabbing even a fraction of a Bitcoin will be interesting.
The future of Bitcoin trading cannot be predicted and no one truly knows what is to be expected on its pricing in the next few years. Past data proves that there has been an uptrend after halving events of the Bitcoin so it is evident that the demand is still there. Also, more National Currencies are Trading for Bitcoin and this leads to a successful widespread of this digital currency across many countries around the world. Most Bitcoin buyers and sellers are optimistic about a positive outcome on Bitcoin’s price in the coming years.