The characteristic of Bitcoin transactions is that they are carried out all year round, which means that there will be more factors affecting Bitcoin. Therefore, the following four main factors must be considered when conducting Bitcoin transactions in order to assess the situation and predict the price trend of Bitcoin.
1. Bitcoin supply and demand have changed
The principle of supply and demand is still common in the Bitcoin market, and a limited supply of 21 million has been set when Bitcoin came out. It is expected to be completed in 2040. Therefore, Bitcoin can be regarded as a financial commodity with limited supply, so the changes in market supply and demand have become an important factor.
2. Bitcoin market value fluctuates
Bitcoin's market value will be affected by the extreme trading behavior of traders, and there will be short-term, large-scale market fluctuations. This change in market value will put traders in a favorable or unfavorable situation. Therefore, observing changes in market value is an important reference element.
3. Important events affecting Bitcoin transactions
Any major event in the international community may have an impact on the price of Bitcoin. For example, the government of a certain country has established strict legal restrictions on digital currencies, which greatly restricts Bitcoin transactions.
4. News that led to the fundamental crisis of Bitcoin
If the Bitcoin exchange is attacked by hackers, a large amount of Bitcoin is lost, or the encryption technology is cracked, such an event will shake the trust of traders in Bitcoin and thus the price of Bitcoin.
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