NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Crypto Bulls Rejoice: Congresswoman Confirms Powell’s Imminent Firing
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Crypto Bulls Rejoice: Congresswoman Confirms Powell’s Imminent Firing

Two Factors That Can Ensure Stability in the Price of Bitcoin

newsbtc
newsbtc
4 years ago
3 mins read
NewsBTC

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Since the great bitcoin rally in late 203 that brought the cryptocurrency to the limelight, things have been relatively quiet for the digital currency. In fact, in January of this year, bitcoin fell to a two-year low of about $214, down 71.14% from its all-time high hit in November 2013, according to CoinDesk BPI exchange.

However, since the two-year low in January, the digital currency has risen by 191% to around 623.24. For one, such a large swing in price shows how volatile the price of bitcoin is. Wall Street analysts believe that equities are the riskiest class of assets. But we can all agree that bitcoin is riskier.

In the real scheme of things, bitcoin will struggle to gain the dominance it promises in the financial markets if it continues to be so volatile. It simply just needs to be a whole lot more stable than this. During the great recession, the “most volatile” equites didn’t even display the level of volatility that bitcoin is exhibiting. For instance, from November 27, 2007, when markets analytics firm Ycharts marks as the beginning of the recession, the S&P 500 fell only 50% to the lowest point that the recession saw.

One thing that keeps things in check in the equities market is the fact that there are a lot of strings attached to the market that prevents the market from over reacting to every bit of event. Some of these include the Federal Reserve, interest from powerful folks around the work – the wealthy – trading volume, the strength off the economy, to name just a few.

For bitcoin to be even remotely as stable as stocks, player in this field need to work more aggressively to get the digital currency attached to a number of heavy strings.

To that end, here are a few things that could make the price of bitcoin a bit more stable.

Bitcoin becoming an underlying asset for certain financial instruments

If bitcoin becomes more of an investment product than just a digital currency, the price of bitcoin is surely to stabilize. You probably know that it isn’t just the brownie points that people win from wearing gold that makes the precious metal so valuable and its price stable. It’s the huge investment interest that it attracts. So beyond just being a digital currency, bitcoin needs to have a respectable interest from investors to stabilize prices. If nothing else, it will offer a much-needed trading volume stability, which will end up.

However, with a number of high-profile bitcoin hacks and theft, it becomes difficult for folks who are interested in long-term investment to put their money in bitcoin. However, the much-expected bitcoin Exchange Traded Funds (ETFs) will go some way to make long-term investment easy, since investors will only be investing in funds that track the performance of bitcoin exchanges. They won’t be so much exposed to the risk theft.

As an additional benefit, becoming an underlying asset for EFTs or any other financial instrument, will boost bitcoin’s security profile. That is because, since more of the world’s wealthy people would be behind it, bigger efforts will be made to secure the cryptocurrency.

Once bitcoin becomes even more secure, even heavier strings (more financial products) will become attached to it, hence making it more stable. Bitcoin deal will then be so complex that you’ll see unthinkable processes of buying bitcoin, getting a personal loan against that bitcoin and then improve credit rating using a personal loan.

Becoming Widely Accepted As Safe Haven

As stated earlier, gold is thriving mostly because of its investment appeal. A big part of that appeal is that it is seen as “safe haven” asset class. This makes sense for bitcoin since it is viewed like a commodity, which many times, move counter to the direction of fiat currencies.

First, though, it needs to become an underlying asset for an instrument like ETF to achieve the much-needed price stability. If it does, the next decade could be a big one for bitcoin. For one, that is because gold has outperformed stocks for the last one and half decades. Second, analysts are predicting that the performance of equities and bonds will drop significantly over the next two decades.

Source: Flickr

Tweet123Share196ShareSend
newsbtc
newsbtc

newsbtc

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Deepseek crypto prediction despre proiecte cu potențial

Zilele trecute, Bitcoin a atins un nou maxim istoric de peste 123.000 de dolari, ceea ce a tras în spate...

Elvira C. 4 hours ago
MicroStrategy

Beyond MicroStrategy: Top 10 Crypto Treasury Stocks to Monitor

As Bitcoin and digital assets gain mainstream credibility, a new wave of publicly traded companies is turning to crypto treasury...

PR Desk 5 hours ago
Ethereum

Ethereum Rips Through Thin Zone: A Loud Move After Weeks of Silence

After weeks of whisper-quiet consolidation, Ethereum has finally found its voice, roaring through a historically thin price zone with conviction....

Godspower Owie 5 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin

Bitcoin Next Key Level Is $136,000 If Momentum Holds, Glassnode Says

Keshav Verma 53 minutes ago
Bitcoin

Bitcoin’s Next Milestone: $250K In Sight After $120K Test, Analyst Says

Christian Encila 2 hours ago
XRP

XRP Becomes Top 3 Crypto After ProShares ETF Approval, Can It Flip ETH?

Scott Matherson 3 hours ago

Premium Sponsors

Press Releases

  • 2 kryptoměny s extrémně vysokým oceněním, které mohou stát za to riziko

    2 kryptoměny s extrémně vysokým oceněním, které...

    3 hours ago
  • 2 rendkívül magas árfolyamú kriptovaluta, amelyeket érdemes lehet kockáztatni

    2 rendkívül magas árfolyamú kriptovaluta, amelyeket...

    4 hours ago
  • 2 криптовалути с небесни оценки...

    6 hours ago
  • 仮想通貨プレセール|ビットコイン向け最速かつ唯一の本格レイヤー2が300万ドル突破

    ...

    7 hours ago
  • 2 rendkívül magas árfolyamú kriptovaluta, amelyeket érdemes lehet kockáztatni

    ...

    7 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.