Hello guys, In 2017, Bitcoins price soared from 1,000 usd to just under 20,000 usd before dropping down to around 13,000 usd at the end of the year. Since then, its value has risen and dropped sporadically from day to day. now its around 8,300 usd. So what may cause this drastic change of bitcoin value ?
One reason Bitcoin is so volatile is due to market size. Small markets are more vulnerable to fluctuations in supply and demand. Government regulations could also contribute to bitcoins intense volatility. When news is positive, it can spur investor interest as well, causing price fluctuations too.