Bitcoin is wide awake from its slumber and has managed to stick to the $50,000 on Christmas day. Despite being down 0.19% in the last 24-hours, BTC stands very much close to $51,000.
Ethereum, the world’s second most popular cryptocurrency also held on to the $4,000 mark. Down by 1.15% in the last 24-hours, ETH stands at $4,000. The gist of price determination and volatility of cryptocurrencies is supply and demand, regulation, cost of production and competition among others.
According to Bitcoin, the price is largely based on supply and demand. The demand and price are very much co-related. When BTC’s demand increases, it’s reflected on the price, thus an increase. When the demand falls, so does its price. Right now it’s Christmas and the holidays season. The demand for bitcoin and cryptocurrencies when up near Christmas Eve as people opted to use their digital assets and gift it as well. Thus the price increase.
Moreover, the US market is looking positive as a crypto bill will be passed in the new year by bitcoin support. And with the US having control over much of the market, this is a positive reflection on the global cryptocurrency industry as a whole. The market has gained from acceptance in the European countries, Dubai, Turkey, Australia, and Ireland, etc. Recently, El Salvador purchased additional 21 bitcoins to mark the 21st day of the twenty-first century.
Crypto enthusiasts are over the moon with both cryptocurrencies stint. They are very much hopeful for 2022. With significant interest stirred by NFTs and the metaverse, the crypto market is set for a boom.
