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Why does bitcoin's price go up or down?

Price goes up when buying pressure increases, and goes down when selling pressure increases. There are several major factors that can cause the price to go up or down such as: That’s what affects Bitcoin’s price in a nutshell.

Is bitcoin crashing?

However, since Bitcoin has reached its all-time high at the beginning of 2021, it doesn't seem to be crashing. In the dot-com bubble, the stocks got to really high prices. But when the bubble ‘burst’, the stocks went straight back down to low prices. The people that bought the stocks when they were at high prices, lost most of their money.

What happens when Bitcoin crosses a certain all time high?

If Bitcoin’s price crosses a certain all time high, in many cases this generates positive buying momentum which increases the price even more. Having said that, when extreme buying momentum occurs it’s highly likely a sharp drop in price will soon follow (also known as a correction).

What is bitcoin's price?

When talking about Bitcoin’s price, people are usually referring to either the USD price on a leading exchange (such as Bitfinex, Binance, or Bitstamp) or a composite price made from the average of multiple exchanges’ prices (e.g. CoinGecko ).

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