Bitcoin is not issued by a bank or backed by a government, therefore, inflation rates and monetary policy are not applicable in evaluating why its price goes up or down.
Traders and investors need to use fundamental analysis in order to make the best possible prediction of its future price. There are many factors that can drive Bitcoin price fluctuations, though, here are the 2 main influencers.
1. Supply and Demand
Bitcoin price is dependent on the market's perceived value. If more people want to buy Bitcoins, the price will increase. On the other hand, if more people want to sell, the price will decrease. Bitcoin has properties that make it similar to gold. Instead of government or banks, it is lead by the developers of the core technology and has a limited supply of 21 million BTC.
2. Competition
While Bitcoin is very popular, traders can choose to invest in hundreds of other cryptocurrencies so called “altcoins” that are also available.
Interested in buying Bitcoin? Check the market now: https://www.bitkub.com/market/BTC
To see the current Bitcoin price, please click here.
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