A Look at the Position of Bitcoin in the Crypto Market


Bitcoin is by far one of the top-performing cryptocurrencies in the crypto market. The price was steadily and significantly rising over the past year, and the latest achievement was a price of $60,000. 

It's safe to say that the bull market affected other cryptocurrencies and the crypto market in general. But also, the events in the crypto market impact the value of Bitcoin and vice versa. This article will explore some of the factors that shift the position of Bitcoin in the crypto market. 


Bitcoin's Supply and Demand

The price of Bitcoin has formed thanks to the relationship of supply and demand in the crypto market. Investors need to keep in mind that this is a decentralized virtual cryptocurrency, and the volume of trading and the available supply of BTC are major factors that affect the position of the price. 

For example, the current bull market phase is influenced by Bitcoin halving, an event that reduces the number of BTC in circulation because it halves the block reward of the miners every four years or after 210,000 blocks of transactions are added to the network. 

When we compare the position of the supply and demand, we will notice that the demand over the past decade has been increasing compared to the supply of BTC. Consequently, this means that the price of Bitcoin is soaring. 

Demand for BTC 

The demand for BTC on the market is it's driven by the investments of both institutional and individual investors. However, what a lot of people don't realize is that the support of the business sector is also incredibly important because it opens new opportunities for the members to use BTC, and when businesses accumulate BTC, they can also get involved with Bitcoin trading sites and exchange or sell BTC. That again shifts the positions of the supply and demand in the market. 

Automated Trading 

For anyone that wants to trade Bitcoin, it's worth noting that the latest trend in the crypto market is automated trading which is powered by automated trading systems that are built on Artificial Intelligence technology. Artificial intelligence technology allows the system to execute trades automatically within the given parameters of the program.

This increases the volume of trading because the automated trading system can make more trades compared to manual trading. Another reason why automated trading also increases the demand for BTC is that this is an automated system that is very useful for crypto newbies that are not familiar with trading and cryptocurrencies. It definitely makes trading less complicated for these users and gives them the opportunity to involve with BTC trading without spending hours on trading platforms. 

Support from Renowned Investors 

The position of Bitcoin is definitely impacted by the support of renowned and big investors. Another reason why a demand on the part of institutional investors has a great effect on the price of BTC is that the crypto market is still small as opposed to the global financial markets. 

For example, when Overstock decided to accept the BTC payments, this move has positively influenced the price of BTC in 2014, and the price has increased to $1000. 

In addition, the support of organizations like UNICEF, which accepts BTC payments, and companies like Microsoft, Subway, Home Depot, and other big and small brands, made Bitcoin quite an accessible cryptocurrency. 

Not only is it available on most trading sites, but it is also used for online and offline purchases. Overall, the crypto market has definitely matured over the years, and the last bull market phase has had a great impact on other cryptocurrencies. 

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