The popularity of Bitcoin is very popular and a lot of investors are concerned that the susceptible price fall in May might be as a result of manipulation. At the early stage of Bitcoin popularity, a lot of people think that it’s associated with the pump and dump schemes. However, everything has changed today, as it’s market price rate continues to increase drastically.
In the past few years, the price value of Bitcoin has continued to increase and decrease at several occasions. It has got investors and forex traders worried whether the price is being manipulated. For example, at the beginning of this year, the price value of Bitcoin increased reaching above $60,000 but it didn’t take a couple of months to decrease to $40,000 in May. A lot of people nowadays invest in Bitcoin on reputable investment platforms while others trade it on brokers like FXTM. To learn further about the trading of Bitcoin on forex brokers, you should read the FXTM review here.
There’s no doubt that the extreme price volatility of Bitcoin in the last few years has surprised almost everyone. Here’s what you should know about the price volatility of Bitcoin:
What Has Happened to the Price of Bitcoin?
In May, a lot of Chinese Banks pulled off from providing financial services using digital currencies based on the order from financial authorities. Due to this, a lot of cryptocurrencies lose their value. And the Bitcoin market’s price decreased from $60,000 to $30,000 immediately.
Apart from China, other country’s authorities are pressuring financial institutions to drop the usage of cryptocurrencies. Due to this, you will notice that a lot of banks are banned for utilising Bitcoin or other cryptocurrencies for payments. However, even with all of these restrictions, it doesn’t restrict investors from investing in Bitcoin. Forex traders can also make use of brokers like axitrader. You can check out the axitrader review here to learn more about the trading cryptocurrencies such as Bitcoin.
How Bitcoin Works?
Bitcoin has become the most popular digital currency globally because of its remarkable breakthroughs in price rates. Bitcoin is not regulated by any financial authority or government, which allows people to spend money anonymously. Bitcoins are created through a mining process with a powerful computer capable of verifying other user’s transactions. Today, the popularity has spread globally that most businesses use Bitcoin as a source of payment. Investors can buy and exchange Bitcoin for other currencies like U.S. dollars, Euros, and others.
Even though Bitcoin is popular globally, it’s yet to gain mainstream acceptance globally. Transactions made with Bitcoin are anonymously encrypted by a powerful security protocol known as cryptography. To store Bitcoin you need a digital wallet from an online exchange like Coinbase or Blockchain You can also store Bitcoin on hard drives and disks.
Most online exchanges allow you to have a digital wallet where you can store, invest or trade Bitcoin directly. You can check out the full review of Alpari here to learn more about the trading of Bitcoin.
The popularity of Bitcoin is very popular and a lot of investors are concerned that the susceptible price fall in May might be as a result of manipulation. In the past few years, it is certain to determine that the rapid increase and decrease of Bitcoin market price value depends on the world economic situation. So, there’s no manipulation in the fall of Bitcoin price in May.