The reason for the sudden rise and fall of the currency of the Bitcoin and other currencies

What are the reasons for the high or low value of Bitcoin and other digital currencies in a few different ways? There are several reasons for the rise and fall of the currency We will mention here the most important of these reasons, and the steps that must be followed to preserve the value of the currency and not to lose if the decline.

The reasons for the increase or decrease in the value of the currency

The currency of the Bitcoin or other currencies that appeared later, in its first appearance was worth no more than one dollar or less, because the volume of currency trading in the first days of production is very little due to lack of supply and demand and the volume of trading significantly, and also to increase the amount of currency Which is traded compared to the small trading volume.

The greater the demand for any currency with the difficulty of production or the lack of supply from them, the greater the price of excessive, and vice versa if the quantity offered and demand decreased by the price of a large, and this is the most important reason may lead to the appreciation of the currency or decrease in varying degrees.

Digital currencies, like any commodity sold and bought, because they are treated like commodities and products in the market of speculation and currency trading, just as the goods that we buy on a daily basis of the market changes in price according to the amount of supply and demand, and the same happens with electronic currencies but more, because the size They are traded in billions of dollars a day.

And also one of the reasons that may lead to the sudden rise or fall of the currency, is the exposure of one of the currency trading platforms to the process of penetration or attack or other sudden reasons, as we know that the currency is traded across many platforms, these platforms include thousands of people, In millions of dollars on these currencies, each of these platforms have a role in controlling the price of the currency, meaning that a platform out of them or more of the service in a matter of moments is that the currency value will drop suddenly.

The increase in the number of minerals increases the number of coins and affects their value, increasing the difficulty of mining each period and other such things affect the price of the currency.

However, the most important factor influencing the price of the currency, especially the sudden impact on the price, is the spread of any good or bad news about the currency. The mere appearance of any news of any currency, whether positive or negative, and its spread among speculators in currencies, causes a sudden collapse or sharp rise The price is straightforward. Every speculator accelerates immediately to keep its capital from losing, even before knowing the truth of the news often.

The digital currency market is therefore more closely related to the news than anything else, and the technical analysis of the currency charts is often neutral.

The reason for the sudden rise and fall of the currency of the Betquin and other currencies

Steps to be taken to preserve the value of the currency and not to lose if it is reduced