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Author: Admin | 2025-04-28
Does the community feel about bitcoin? Has recent bitcoin news been priced into the market? Are markets bullish (believing the price will rise) or bearish (believing the price will fall)?Regulatory Changes: Crypto prices plummeted in September 2017 when China announced the closure and ban of bitcoin exchanges. Some people called it the end of bitcoin. The price of bitcoin, however, quickly recovered and rose to an all time high a few months later. Regulatory changes around the world can have a major effect on bitcoin. If the United States, South Korea, or other major bitcoin-using nations ever announce a widespread ban to bitcoin, for example, the markets will be flooded with people looking to sell their bitcoins. History tells us the price of bitcoin always rebounds after regulatory changes, but you never know what the future holds.Exchange-related Issues: Other major bitcoin price movements have occurred due to exchange-related issues. The infamous Mt. Gox hack, for example, caused the price of bitcoin to plummet from $1400 to $200. The world’s biggest bitcoin exchange was hacked and hundreds of millions of dollars of bitcoin were lost. Some people saw it as the end of bitcoin – it was simply too insecure to be a real currency. These hacks and other exchange-related issues can substantially influence the price.Is Bitcoin a Bubble?You’ll find plenty of people calling bitcoin a bubble. Any time demand for any asset rises suddenly over time, you’ll find people calling it a bubble. There are real estate bubbles, for example. There are also historically famous bubbles like “Tulip mania” in the 1700s and the Dot Com bubble of the 1990s.Is bitcoin a bubble? Is it doomed to collapse like bubbles of the past?It could be. Like with all aspects of bitcoin, it’s impossible to predict the future.However, it’s important to remember that bitcoin isn’t like any traditional asset in the world today. It could buck the trend. Bitcoin’s bubble might never burst. Or, bitcoin might not even be in a bubble.A bubble is only a problem when a large group of people suddenly decide to sell that particular asset. This is when the bubble bursts. Sometimes, the bubble never bursts. Sometimes, the market cools and a small group of people decide to sell. The bubble deflates slightly but never bursts.Would a large group of people ever suddenly sell bitcoin? Would the market ever be flooded with people who are trying
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