During the trading session on December 13, the price of bitcoin increased by more than 5%. On Binance, the world’s largest cryptocurrency exchange, bitcoin rose by 5.15% to $17,857. Towards the evening, it became more expensive and brought its value to 18 thousand dollars. Some analysts predict that the cryptocurrency will become more expensive, while others predict that it will become cheaper.
But what are the reasons that make bitcoin more expensive? Could the rise be longer?
On topic Publika.azAccording to economist expert Natig Jafarli, who spoke to , bitcoin is a completely speculative asset. Its rise and fall depends only on news streams:
“There has been positive news about bitcoin in recent days. Many countries have said that they will decide on the taxation of the income of this cryptocurrency. This means that bitcoin will become legal in the future. Such a possibility arises, and therefore, interest in cryptocurrency has increased and we have seen a temporary rise in prices.”
The expert believes that this price increase is until the next news flow. If there is negative news, bitcoin will fall again:
“For example, if a country bans bitcoin, or if the tax becomes higher, then we will see the price fall again. In general, since coins, including bitcoin, are a purely speculative asset, it is impossible to say that its price will change according to economic categories. This cryptocurrency is an asset tied to news feeds only. Therefore, when there is negative news, the price goes down, and when there is positive news, it goes up. It is very difficult to predict this.”
Akkabay Miradov
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