The price of Bitcoin has slumped after a failure to agree on a new direction. Kelly Trinh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, alycia bitcoin price has disclosed no relevant affiliations beyond their academic appointment. CSIRO provides funding as a founding partner of The Conversation AU. The Conversation UK receives funding from Hefce, Hefcw, SAGE, SFC, RCUK, The Nuffield Foundation, The Ogden Trust, The Royal Society, The Wellcome Trust, Esmée Fairbairn Foundation and The Alliance for Useful Evidence, as well as sixty five university members.
Our ongoing research reveals four factors that affect the price of Bitcoin. Animal spirits Economists have long had a notion that psychological factors affect investor decisions. Analysis of the price of Bitcoin shows that positive media coverage is one of the main factors driving the price. This was most apparent in the early days of Bitcoin, when mainstream press started to report on the new currency and caused a number of short price spikes and collapses.
As media coverage increases and other factors are brought in, it is harder to distil the effect of the media alone. Political risk Political risk around national currencies can also affect the price of Bitcoin as people use it to hedge against price movements in a particular currency, or they need to quickly move large amounts of value out a country or currency. The economic crisis in Greece in 2015 was followed by reports of increased buying of Bitcoin by Greek citizens wishing to protect their wealth. 400 for most of that year. June 23 2016 did lead to an increase in the price of Bitcoin alongside a decrease in the value of the British pound. The pound started plummeting around May 20 2016.