A Housing Bust Comes for Thousands of Small-Time Investors
Bitcoin is considered the most liquid cryptocurrency—typically, it can be easily bought and sold on exchanges and converted to and from cash. Liquidity is often good for price stability, however, changes in liquidity may make Bitcoin prone to price swings. Since more liquidity makes it easier to buy and sell an asset, assets with higher liquidity like Bitcoin may be more valuable to investors and traders. Original price of bitcoin CoinMarketCap. "Bitcoin Price Historical Data"
Bitcoin release price
The first Bitcoin real-world transaction occurred on May 22, 2010, a date known to Bitcoin enthusiasts as Bitcoin Pizza Day. Laszlo Hanyecz paid 10,000 BTC to have two Papa Johns pizzas delivered to him. The pizzas retailed for about $25. At the peak of Bitcoin's pricing in 2021, the two pizzas would have been worth north of $680 million. When Did Bitcoin’s Value Finally Increase Significantly Above The 2009 Price of Bitcoin? Price volatility. While Bitcoin's value has risen dramatically over the years, buyers' fortunes have varied widely depending on the timing of their investment. Those who bought in 2017 when Bitcoin’s price was racing toward $20,000, for example, had to wait until December 2020 to recover their losses. More recently, Bitcoin’s price began 2022 slightly over $47,000 per coin. After a tough year for cryptocurrency in general, Bitcoin has slumped to its current price of just under $17,000.
2.2. Vector autoregressions model
Most experts are generally bullish on Bitcoin’s price. Some, like Digital Coin Price, think we will see the Bitcoin price equal almost $120K in the next five years. Others, however, make much less positive Bitcoin price predictions. Wallet Investor, for example, expects Bitcoin to go down to as low as 9K USD in the near future, and even claims it is possible that Bitcoin’s price might crash. Bitcoin Price Struggles To Recover and Remains Vulnerable To Fresh Decline In further study, we will focus on three points. First, we already identify the factors have influence on Bitcoin’s price, next we will explore the mechanism of how these factors function on Bitcoin’s price. Second, since 80% of Bitcoin transactions are from Chinese market, we attempt to use data only from Chinese market such as stock market index and Bitcoin trading frequency to analysis the relationship between Bitcoin’s price and Chinese market. Finally, we will analysis digital currency from the perspective of monetary theory, define digital currency entirety to give suggestions on how can Bitcoin improve to make it’s way as a real currency.