Bloomberg: An important Metric Indicates Bitcoin Price Over $12,000

Bitcoin or cryptocurrency is a type of online money or way of exchange. The bitcoins always has an inconsistent value. That’s why it is not easy to guess or calculate the price of bitcoin. Bitcoins experience significant fluctuations in price, and this makes investment in bitcoin highly risky.

Bitcoin is a type of cryptocurrency invented in 2008, by an unknown individual or a group with the name Satoshi Nakamoto. The use of this digital currency is high because it doesn’t involve any intermediate. Anyone can buy bitcoins online; many websites sell bitcoins online. You can use a bitcoin to buy a service or product online.

Recently, a report from Bloomberg suggests that the price of Bitcoin can rise above $12k. The Bloomberg also added the following statements in their release.

  • The news declares that both on-chain and off-chain indicators for Bitcoin point to the asset’s appreciation. One of the critical metrics for Bloomberg is the number of active addresses.
  • The continual growth of GBTC or Grayscale’s Bitcoin Trust and the shrinkage of the premium versus the Bitcoin spot market should be deducted as bullish for the market.

The Bitcoins or Cryptocurrency are so volatile because of the following reasons.

Bitcoin Market Is Still Growing

Cryptocurrency has gained a lot of attention in recent times, and many individuals have invested in it. Still, the cryptocurrency or Bitcoin market is smaller than that of the flat or gold market.

Today the total market of cryptocurrency is $800 billion, which is very low. Hence, small forces can induce a significant impact on the price of Bitcoins.

Bitcoin Is Purely Digital

Bitcoin is a purely digital currency, and its value is entirely dependent on the rules of supply and demand. The price of bitcoins changes according to the interests of the people. If demand is high, the price will increase, or if customers lose faith and start selling, the price may decrease.

It’s Easy To Enter In Bitcoin Market

The most crucial factor for the unstable price of the Bitcoin is anyone can enter the bitcoin market. Unlike markets like real estate and stocks, barriers for joining Cryptocurrency are very less. All you need is a device with an internet connection and some money.

As a result, bitcoin users are increasing at a steady rate. The stats show there are more than 42 million of Bitcoins Wallets already created. Hence, it is obvious why Bitcoins are so volatile.

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