Bitcoin Is Slowly Making A Comeback

As you may already know, it’s been a terrible year for people who put money into Bitcoin and other cryptocurrencies.

In 2022, Bitcoin lost more than half of its value. The price of a single Bitcoin is now around $23,000, more than 65% less than its all-time high of nearly $70,000 last year. As a result, the total value of all cryptocurrencies has dropped from about $2.2 trillion at the end of 2021 to just over $1 trillion now.

Bitcoin is the biggest cryptocurrency in the world, making up about 42% of the market. However, 2022 has been just as bad for people who own other crypto-related assets, such as Ether. So far this year, the brokerage stock has dropped by 75%. Can you imagine?

However, there is an optimism that the worst may be over for cryptocurrencies. Bitcoin’s value has increased by more than 15% in the past week, but two other leading cryptocurrencies have increased by much more.

More volatility to expect

According to several cryptocurrency specialists, Bitcoin’s surge has trailed behind the stronger upward advances in Ether and other smaller cryptocurrencies, and it remains a source of worry in the short term. cryptocurrencies and stocks might not make a strong comeback until the father of Crypto has a “more robust bounce.”

Therefore, the claims that Bitcoin is the digital counterpart of gold are nothing more than just claims. Bitcoin, as an asset, acts now more like volatile tech stocks than much more stable commodities such as gold or government-backed currencies such as the Dollar.

Investors should also remember that there may not be enough demand for cryptocurrencies to support all available coins, tokens, and exchanges. If so, only the most resilient cryptos, including Bitcoin, will survive and prosper.

But what makes Bitcoin price increase? Let’s find out below.

Major Factors influencing Bitcoin price increase

Since Bitcoin’s birth, three major factors have affected its price.

• Availability

As it’s known, Bitcoin has a finite quantity. Only 21 million Bitcoin tokens were made, and 18–19 million remain in circulation.

Experts call Bitcoin’s scarcity its “charm.” Even if it has a fixed supply, market demand still grows. It is because Bitcoin’s restricted quantity makes the coin better, and people scramble to buy it.

• High Adoption of Bitcoin

Increasing acceptance improves Bitcoin’s price. According to crypto enthusiasts, more individuals are buying and exploring cryptocurrencies nowadays, and it is being embraced more quicker than the internet. Therefore, significant Bitcoin adoption will enhance its price.

According to some research, Bitcoin’s popularity has climbed 113% annually.

• Mining Cycle

Halving, also known as the “cycle,” is another element in Bitcoin’s price rise. An algorithm reduces the number of coins in circulation by halving them.

This process could affect how many new coins are put into circulation, which could affect the price of Bitcoin in the long run.

Final thoughts

So, is it safe to say that Bitcoin and other leading cryptos like Ether have finally touched rock bottom, and the only way now is up? There are a few reasons to hope so.

Although Bitcoin has had a bumpy start to the year, experts still predict it will reach $100,000! And it is more a question of when than if. 

Thus, let’s wait for a better future for Crypto. Until then, you can grab your coin and have fun playing at FJ and increasing your coin value.