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Follow us on social media. On the upside, any statement recognizing the currency has a positive effect on the market valuation of the currency. Bitcoin has hit what chartists call a "support line. All of this shows how volatile the currency is, prompting the question, what leads to such huge movements?
Compare Popular Online Brokers. Recent announcements by the IRS stating that the currency is actually an asset for tax purposes had mixed effects on volatility.
In case of the media influence, the change is more drastically leading to speculative trade. In the near term , much of the volatility will be driven by investor perception of the ability of gateways to safeguard individual holdings and provide for a reliable store of value as adoption increases.
In spite of several other altcoins being developed with more superior features than Bitcoin, it is still the most valued currency because of the trust the community places on the currency.
Virtual Currency Is Bitcoin Useless? Gold prices are based on this principle as well.
News about the currency being used for selling drugs, laundering money, and other illegal activities can also impact the value of Bitcoins. Christiana Herringham: Virtual Currency.
People trade when they see support and resistance, and thereby turn these points into "support" and "resistance. Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors.
Recent moves by the IRS are not clear as to their signaling motives and therefore have mixed signals to the market for Bitcoin. In this 2013 photo, a staff member at Bitcoin mining company Landminers in southwestern China checks a computer used for that purpose. Our ongoing research reveals four factors that affect the price of Bitcoin.