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 ?
Too many factors why bitcoin price fluctuates. One would be the "law of supply and demand", we all know that there is only 21 million bitcoin out there, so limited that people take advantage of this through hoarding/hodling. When so many people are hodling their bitcoins this causes prices to go up.
Negative news like bitcoin being banned by the government in other countries and hacking make the people panic selling their bitcoin at a loss can make the price to drop drastically and a lot of internal and external factors that makes bitcoin price to fluctuate.