The Bitcoin Price and Why Live Tracking Matters

10 reasons to choose OKCoin as your crypto exchange

The Bitcoin Price and Why Live Tracking Matters

Why you should follow the most important financial metric in cryptocurrency

Bitcoin price and speculators

The price of bitcoin (or BTC) is one of the most speculated on financial metrics in digital currencies.

In reality, the ebb and flow of the cryptocurrency market moves with the price of bitcoin. In other words, a downturn in the value of bitcoin is usually synonymous with a general downturn in the cryptocurrency market. Stablecoins pegged to fiat currencies may be the only exceptions.

In the first days of 2021, the bitcoin price soared to a new all-time high of over $41,000 per BTC, far above the previous 2017 all-time high of nearly $20,000. This has sped up the already frenetic environment around cryptocurrencies.

Bloomberg analysts recently speculated the bitcoin price could reach $50,000 per BTC. Increased demand and scarcity play critical roles in this projection, especially as US monetary policy focuses on printing money and debasing the US dollar. Read more about the finite supply of bitcoin and the halving event which happens every four years to wind the supply down to zero. 

It is also these kinds of projections that contribute to the continued debate around the digital currency’s value.

On Bitcoin’s value

Bitcoin is fungible, highly divisible, portable and easily transactable: all hallmarks of any real currency.

But is bitcoin a real store of value? Can bitcoin maintain its value without wildly depreciating?

The decentralized network of users that compose the world’s truly first global digital currency, operate outside the guidance of government bodies and central banking authorities.

What we’ve seen is bitcoin’s value, from a market capitalization perspective, surge and fall over a relatively short lifespan of only 12 years. This gives bitcoin the label of being a more volatile currency or digital commodity than mainstream equities. This, however, is not true.

A recent post by investment management firm VanEck laid the claim that Bitcoin is less volatile than many mainstream stocks. 

In their comparison of bitcoin’s volatility against the stock price of companies listed on the S&P 500, VanEck found the cryptocurrency to be less volatile than 112 of the top 500 over a 90 day period. 

In fact, even before the recent all-time high, bitcoin still offered higher returns than 145 stocks listed in the S&P index.

Tracking the live bitcoin price and getting trading alerts

Bitcoin is a very young currency. It also operates outside the bounds of any government or banking institutions.

As a result, the bitcoin price is subject to volatility and can swing with news or opinions from pundits.

Knowing the live bitcoin price is thus an important aspect of capitalizing on market gains. It is also prudent for portfolio management. For cryptocurrency traders, bitcoin is a barometer on the general state of the cryptocurrency market.

Staying informed is the best way to maneuver in the cryptocurrency market. Track bitcoin on OKCoin where you can easily set up price alerts for different levels of price movements, sent to your email or phone. 

You can also set up recurring buys to dollar-cost average your bitcoin purchases and grow your portfolio over time. 

That way, short term fluctuations in price will not affect your strategy — whether the price goes up or down, you can keep accumulating a healthy position.

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