Satoshi Nakamoto created the era of decentralized payments and transactions. His creation, Bitcoin (BTC), has paved the way for smoother transactions. From this token, other cryptocurrencies, also known as altcoins, have sprung up, making transactions faster and more seamless. In such a way, there’s no need to seek approvals from traditional banks to make payments when you shop online, use actual promo codes at Maggico Casino, or donate money to charity. With cryptocurrencies, costs are subsidized, and speed is guaranteed.
Bitcoin’s value is now fluctuating, and traders are on high alert. In recent times, the ETF of BTC has been known to outflow, and even the token’s price has seen significant lows. The token’s future hangs in the balance, tussled by recent global happenings affecting the market. Are you looking to invest or concerned about your portfolio? Let’s look at Bitcoin!
Price History
Bitcoin is regarded as the king of cryptocurrency for many reasons. Being the first crypto coin is only a tiny bit of it. The coin’s price trajectory is unlike any we have witnessed. The journey began in 2009 when its value matched less than a cent. It took two years to rise to $1 and traded at $13 in 2013. By the end of 2017, it had climbed over $19,000 but had fallen under $7,000 in 2019.
The Covid-19 lockdown of 2020 was a pivotal year for BTC. As the economy shut down, the coin found its footing again. Although it began the year valued at about $7,000, by year-end, it had recorded over 400% increase, selling at over $28,000 apiece. Over the years, the halving event has remained a significant cause of increment.
Every four years, the mining reward is halved, reducing the earning potential of the token, its circulation, and raising its value. Bitcoin has a significant sway over the cryptocurrency market, with its highs and lows affecting the value of other altcoins.
Factors Affecting Bitcoin Price
Several events can impact the token’s price, whether positively or negatively. Thanks to the rising market volatility, one can never predict what will cause the fluctuation. Let’s focus on two main causes of the coin’s volatility.
Supply and Demand
Only 21 million BTC coins will ever be created. This was Nakomoto’s plan, ensuring the cryptocurrency’s value would remain high. The halving event is designed to reduce its supply, cutting it down by half every four years. With each event, crypto enthusiasts are reminded of its scarcity, and its value rises again. Alas, the last halving in April 2024 played out differently. The SEC approval of spot BTC ETFs some months prior negatively impacted the event. Many of those ETFs witnessed significant outflows, causing the token to drop and reject the historical trends.
World Events
Inconsistencies in global markets can also greatly impact prices. Anything that can crash the stock market would impact the token’s value. Recent happenings include points like:
- Weak employment data;
- Tensions in the Middle East ;
- Revived fears of a recession;
- Rate hikes in Japan;
- Slowed growth of major tech stocks;
- Tensions in the UK.
Market Analysis
The crypto fear and greed index, a metric that measures the market’s overall sentiment, has tipped to dangerous levels. It has tipped to 17, indicating extreme fear for the first time in over two years.
This decline is worrisome to traders and holders, as the coin’s score on the index was 67 only last week, showing greed. This decline is directly linked to the bleeding of the spot BTC exchange-traded funds (ETFs). According to Farside Investors, Grayscale Bitcoin Trust and ARK 21 Shares have recorded outflows of $69.1 million and $69 million respectively. The market lost over $600 million in leveraged positions, and trillions of dollars were wiped from the US stock market. All of these happened in one day!
This is just one of many instances impacting the price of the token. Real-time market analysis hints that prices may continue to fluctuate for some time. Bitcoin’s price has remained highly unstable, dipping to $49,200 and climbing past $55k afterward. Many are scared that the token’s price may continue to fluctuate dangerously as several pivotal economies experience significant meltdowns. Some analysts are convinced that while other altcoins may suffer, the number one cryptocurrency will jump past these hurdles.
The Future of Bitcoin
For the rest of 2025, analysts are urging investors to hold tight to their tokens. Various indicators like the SuperTrend hint at bearish levels for the token, and its price action backs this analysis. As tensions ease globally, we may see better predictions for the token.
