Crypto

Bitcoin Below $48,000 Again: Why Is BTC So Volatile?

Want to know why Bitcoin is falling? Read this blog to get a simple explanation of the factors that impact the value of Bitcoin.
April 18, 2024
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2021 was in many ways the year of Bitcoin. El Salvador became the first country to adopt Bitcoin as its official currency, the first-ever BTC ETF was launched, and BTC hit its all-time high of $68,000.

2022, on the other hand, has been anything but pleasant for the world’s biggest cryptocurrency as BTC fell below $48,000 and touched $40,000 at one point during the 1st week of the new year.  

This might cause crypto and non-crypto investors alike to wonder why Bitcoin is so volatile in its highs and lows. Well, there’s no simple answer to this question but there are multiple factors known to affect Bitcoin. 

Historical Reasons For Bitcoin Volatility

Bitcoin is still in its infancy or what’s known as the price discovery stage. Some degree of volatility is thus expected but even then, there are other factors that add to the wild price swings of BTC

1. Number Of Bitcoins Available

Supply and demand is the name of the game when it comes to a scarce asset. Bitcoin is one of the most coveted yet limited assets by design - there can only ever exist 21 million BTC. 

This is why BTC isn’t alien to the impact of supply and demand. As time passes by, we’re inching closer to the

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