There are many factors that cause bitcoin prices to go up or down. Knowing what these factors are can help you to make more money with your trading. One of the most important things that people who trade bitcoin want is freedom. Fewer regulations mean more freedom. Prices of bitcoin are higher when there are fewer regulations to inhibit the amount of trading that is going on. Conversely, more regulations have a tendency to drive down the price of bitcoin and other cryptocurrencies. People who invest in bitcoin do not want a bunch of annoying regulations to limit the amount they can trade at one time or during a specific time period.
Studies have shown that bitcoin prices typically go down a lot when news comes out about new regulations that will make it more difficult to trade cryptocurrency in a certain key country. This is the way that it has always been since bitcoin was first created. The whole concept that bitcoin was founded on is freedom. Regulations take away freedom. This makes the prices fall. According to newsbtc.com, the amount that the value decreases is directly related to what specific regulations are put into place.
It is absolutely critical for people who trade bitcoin on a regular basis to be up to date where regulatory news is concerned. This will let them know about any info that might cause the value of bitcoin to rise or fall in the near future. As with any type of investing that you choose to do, research is critical to making a profit. You should always make yourself aware of anything that could impact the value of bitcoin. This will allow you to take the necessary action to buy or sell. Doing this will allow you to minimize your losses. You will make more money in the long run by being informed.
The bad news is that it is becoming more common lately for countries to create regulations for the trading of bitcoin. There is still the misconception that most people who are involved with bitcoin are criminals. This is why many countries want to keep a very close eye on all of the transactions that are being made within their borders. Bitcoin’s value has seen some sharp fluctuations as of late. Not all of this can be blamed on regulations. There is also the situation in Iran which is playing a role in the value of cryptocurrencies.
