Understanding and Predicting Changes in Bitcoin Price

Bitcoin is digital currency, so it’s subject to go up or down in value just like any other currency. Read on to learn how you can predict Bitcoin price changes.

Who hasn’t heard about Bitcoin?

Early in March of 2017, the so-called “crypto-currency” was more valuable than gold in the world markets.

Except for 2014, Bitcoin has been the top-performing currency every year since 2010.

With huge value, major investors, and global economic turbulence many newcomers are wondering how they can get in on the action.

And, as some longtime Bitcoin users watch they wonder exactly what market trends and global activities could impact Bitcoin price.

Whether you’re just getting started or have a fat Bitcoin wallet you’re hoping will increase in value, we’ve put together a list of items to help you understand and predict Bitcoin price.

Ready to make a bundle in the hottest currency in the world? We’ll tell you what to watch out for.

Master this list and you might just get rich.

Let’s go:

Software, Hardware & Apps

Since the fixed supply of Bitcoin impacts price, how does somebody get to the supply?

As Bitcoin is a network currency tools are required for earning, possessing, trading, and mining the currency. For example, software for Bitcoin includes Bitcoin wallets, mining pool programs, review apps, and cloud computing options for trading.

In addition, many providers offer hardware products for Bitcoin mining.

While each of these tools can be helpful in Bitcoin investing, the tools themselves can impact price fluctuations.

Ease of access for more users means more trading. And more trading likely results in a smaller supply.

With the development, adoption, and approval of tools, there is likely to be an increase in Bitcoin price.

The more people who are comfortable using and exchanging Bitcoin, the higher the price.

Conversely, if people are uncomfortable or intimidated by the tools trading can decline.

Major Investors

Just as average users become comfortable trading Bitcoin through the many tools available can cause prices to increase, so can the involvement of major investors.

And many large companies, venture capitalists, and financial institutions are investing large amounts of money in Bitcoin and Bitcoin technology.

Due to the international expansion possibilities, and fraud protection, both the currency and the technology behind it is deemed as highly valuable by major investors.

Over $1 billion dollars have been invested in Bitcoin.

Major investors include:

As more large companies, financial institutions and venture capitalists invest, the value of Bitcoin, or Bitcoin technology, will likely rise.

Bitcoin ETFs

Because there are so many major investments in Bitcoin and Bitcoin technology there are efforts underway to create ETFs for Bitcoin.

A Bitcoin ETF could greatly increase the value of the currency. But in order for an ETF to be legally established, it must get approval from the SEC.

Curious how SEC acceptance of a Bitcoin ETF may impact price?

Read the headlines like this one:

“As Bitcoin ETF Nears, Analysts Warn of Trading Frenzy” from the Wall Street Journal.

An ETF is an exchange-traded fund, meaning a much larger audience of investors can invest and trade the fund.

As of March 2017, two requests by companies to create a Bitcoin ETF were denied by the Securities Exchange Commission (SEC).

However, as there are still outstanding applications pending, the formation of an ETF could mean big gains for Bitcoin value.

Clearly, staying informed about current events and news is important for any Bitcoin miner. Major market fluctuations can occur based on the headlines alone.

Perception Impacts Price

Just as the public having access to investing in Bitcoin can impact Bitcoin price, so does public perception.

The public having a favorable, safe perception of the digital currency drives value. While if the public begins to question the validity of Bitcoin, the price can decrease.

One example of public perception and Bitcoin came in 2013 with the Silk Road crime network.

For those who remember, Silk Road was an online market for drugs.

Silk Road also traded forged documents.

When the F.B.I. busted the network they found sales revenues of more than 9.5 million bitcoins.

At the time, Silk Road was responsible for approximately half of all transactions involving bitcoins.

As some people then started to associate Bitcoin with crime, this type of news can impact Bitcoin price.

Public perception of price is important to consider when investing in Bitcoin.

Acceptance Impacts Bitcoin Price

Just as public perception impacts price, the more people who accept Bitcoin lifts the value of the currency.

The more investors, the more likely wider acceptance

As venture capitalists bet on Bitcoin they will likely also work hard to promote and increase of Bitcoin price. They have a vested interest in Bitcoin going up in value.

But acceptance from large financial institutions and corporations also impacts the price.

Some of the world’s largest financial institutions have started adopting the same technology Bitcoin uses.

This technology, a network infrastructure called a blockchain is replacing one of the central databases of the Depository Trust and Clearing Corporation (D.T.C.C.).

This database is used by the largest banks in the world.

IBM will lead the project for the D.T.C.C. The project is expected to be fully functioning by early 2018.

Shifts in the Global Economy

Acceptance by institutions affects Bitcoin price. So does the acceptance of people from different countries. The instability of global markets and politics can have a major impact on Bitcoin price.

In addition, the instability of global markets and politics can have a major impact on Bitcoin price.

Take for example:

Many economic experts note this trend toward lack of government trust and national isolationism as a problem for the global economy. As Bitcoin is an international currency it offers a stable possible solution.

This offer of a solution can increase Bitcoin price.

The Role of China

But cataclysmic events don’t have to happen in the global economy to effect Bitcoin price.

One example is the wide acceptance in China of bitcoin. This foundation has given boosts to the price as well as for the international acceptance of the security.

As China is an international powerhouse in terms of population and economic power the country’s wide use of Bitcoin helps overall value.

China Bitcoin Facts

If you need to understand the role of China in impacting Bitcoin price take a look at the facts:

Some critics fear that this level of concentration in China dilutes the currency’s ability to act in a truly international way. Others see heavy Chinese investments and interest as a sign of stability.

But in the world economy, the fact that there is so much uncertainty has led some experts to believe a more stable, international solution is preferable.

Bitcoin is an easily transferable, portable, international solution.

Part of the appeal of Bitcoin is its ability to provide a more reliable alternative to traditional currencies and financial networks. Although other critics exist who still question using Bitcoin at all.

Expert Opinions

You can probably tell, there are some who believe in Bitcoin as a great investment, and others who think Bitcoin is little more than an investing fad.

But as more experts support using Bitcoin as currency, the more price can increase. Just as increases in investment capital, fluctuations in the global economy, and a small supply impact price, the opinion of economic experts does as well.

However, just as with venture capitalists and billionaire investors, expert opinions can be biased. They know their public opinion drives up Bitcoin price.

Get Mining!

Then again, if the venture capitalists and experts are betting on Bitcoin, shouldn’t you?Now that you’ve got the techniques down for understanding and predicting changes in the price of Bitcoin you’re ready to begin .

Now that you’ve got the techniques down for understanding and predicting changes in the price of Bitcoin you’re ready to begin.

Knowing how different trends in the global economy, investments, and acceptance impacts possible price surges means you stand to make a bundle when it comes to Bitcoin mining.

Watch the news, take account of the market fluctuations, and study the technology trends, and you and Bitcoin could have a very happy relationship together.

Not sure how to get started? We’ve got you covered.

Click here to find out everything you need to get started with Bitcoin Mining!


An embeddable, real-time Bitcoin price ticker.

For demos, documentation, and integration instructions, see BTCQuote.com.


<div id="btc-quote"></div>
<script type="text/javascript" src="//cdn-gh.firebase.com/btcquote/embed.js"></script>


What is BTCQuote?

BTCQuote is an open-source, real-time Bitcoin price widget for your website or blog. It is easily embeddable with 2 lines of code and offers a beautifully minimal design.

Where can I use BTCQuote?

BTCQuote is completely free and can be used on any website or blog without restriction. The source code to BTCQuote is published under the MIT license, so feel free to improve, adapt, or redistribute it as you like.

Which technologies does BTCQuote use?

BTCQuote uses the Bitcoin Open Data Set for real-time price updates. This service is powered by Firebase in collaboration with Coinbase. Animations powered by Odometer, by Hubspot.

Where does the data come from?

Bitcoin price data is provided by Coinbase, the leading online Bitcoin wallet service.

Who’s behind BTCQuote.com?

BTCQuote was built by the folks at Firebase in San Francisco, California. Community submissions are encouraged. Star BTCQuote on GitHub and send a pull request when you’re ready to contribute.


Copyright © 2013 Firebase

Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the “Software”), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.