Bitcoin is one of the over thirteen thousand (13,000) cryptocurrencies tracked on CoinGecko and over 19,000 on CoinMarketCap. It is a digital decentralized currency that runs on a Blockchain. It helps to facilitate peer-to-peer, fast and borderless payments. Bitcoin was created by a mysterious man named Satoshi Nakamoto in 2009. The currency has since then gained mass adoption and popularity. The success of this digital currency has made its creator really wealthy. Satoshi Nakamoto Now The 15th Richest Man in The World.
Why is Bitcoin so volatile?
Bitcoin’s popularity and adoption have made it tradeable by millions of traders across the world. According to CoinGecko today, Bitcoin has a 24hr volume of over $17million and a market capitalization of $753billion. This undoubtedly indicates a lot of buying and selling.
Like other volatile currencies, Bitcoin’s price is determined by buying or selling pressure. The price goes up when demand is greater than supply and the price plummets when the supply surpasses the demand.
Market conditions and external factors can influence a trader’s decision to either buy or sell. As a matter of fact, the market directions are largely decided by the whales (the big players in the market who hold most of the Bitcoins). Some of such factors may include hacked exchange, government regulations, bullish or bearish news, etc.
Most volatile hours of Bitcoin
In the crypto space, the UTC timezone is what is utilized. According to CoinMarketCap’s article on Bitcoin’s volatile hours, “12 am to 1 am UTC is one of the most volatile hours of Bitcoin and this may be because this period reflects the start of the evening in North America, and the beginning of Asia’s working day.”
“Another study by Forbes Digital Assets in 2019 identified 4 pm UTC on a Wednesday as the most volatile timeframe for BTC across several exchanges.”