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Bitcoin reached a new all-time high in March 2024. Its value went all the way up to $73,750. Since then, BTC has lost some value, so you might be wondering what’s happening with Bitcoin.

The best answer is — nothing unusual. It’s normal for cryptocurrencies to be volatile, and it seems that BTC is going through a slightly bearish period. Things are likely to take a turn for the better soon, so now might be the right time to buy Bitcoin with a credit card. In this article, we discuss BTC’s recent price movements and reasons why its value fluctuates.

Current Market Situation

Bitcoin is now worth (July 2024) around $62,755.06. You’ll currently find around 19.7 million tokens in circulation, which is close to the maximum supply of 21 million. The coin’s market cap is over $1.2 trillion, making it the most valuable in the crypto industry.

During the past few weeks, BTC actually lost a portion of its value. It was worth $66.14K in June, but the news that the German government decided to move thousands of BTC affected the coin negatively. Combined with the overall crypto volatility, Bitcoin dropped below $55K. It bounced back in the last couple of weeks, with the crucial news being that the CFTC chair classified BTC as a commodity to the US Senate.

4 Reasons Why Bitcoin’s Price Fluctuates

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Experienced crypto investors know that volatility is normal in this market. It’s not a surprise for a coin to gain or lose 10-20% of its value during a week or two. But what is the reason for Bitcoin’s fluctuation? Here are the top factors affecting BTC price movements.

1.      Bitcoin’s Role in the Remittance Market

A crucial part of the road map to succeed in crypto is that you understand the available research options. Bitcoin is a digital payment method whose primary purpose is to offer a simpler and more affordable alternative to fiat currencies.

BTC has become popular for international remittances. It has faster transfer times, and transactions won’t take days, which is sometimes the case when sending fiat money abroad. Bitcoin is simple to send and widely available. That makes it accessible throughout the world, including underbanked areas. Excluding the few countries that banned crypto, you can send Bitcoin worldwide without limitations.

Last but not least, international Bitcoin transactions come with lower fees than fiat transfers. You don’t pay extra for cross-border payments. The only charges are the regular fees on the BTC network.

2.      How Bitcoin ETFs Drive Price Growth

An ETF is an exchange-traded fund available on trading markets. ETFs are connected to an underlying asset, and it was huge news when the SEC approved Bitcoin ETFs in January 2024. These exchange-traded funds aim to mimic the current price of Bitcoin.

Due to the concept of ETFs, these funds made it more accessible to invest in Bitcoin with lower sums. Furthermore, it made BTC investment available in conventional fiat markets. That means traders could invest in Bitcoin without actually entering the crypto market. It boosted Bitcoin’s legitimacy significantly, making it more popular as an investment asset. Experts believe that it had a positive effect on BTC and will continue having a positive influence on the coin’s price in the years to come.

3.      Global Economic Indicators and Cryptocurrency’s Reaction

According to UNCTAD predictions for 2024, global economic growth will be at around 2.6%. That is a worrying number because experts believe that recession starts at 2.5%. Additionally, the growth hasn’t been close to the 3.2% mark ever since the pandemic.

More encouraging statistics are that global inflation declines steadily. It was 6.8% in 2023 but is likely to drop to 5.9% in 2024. A year later, the rate should be around 4.5%. In other news, the US job market shows signs of weakening. That increases hopes for rate cuts, which investors would appreciate.

The crypto market is less sensitive to macroeconomic indicators than the stock exchange. However, it reacts to global economic movements. The concerns for economic stability could also affect crypto prices, leading to higher volatility. That can be influenced by sudden decisions from investors to leave or exit their crypto market posts due to global economic events.

4.      Influence of High-Profile Celebrity Divestments

High-profile celebrities and influential personalities have often been involved with the crypto market over the years. Elon Musk promoted Dogecoin on multiple occasions, while Kim Kardashian even paid a $1.26 million fine to the SEC because she promoted crypto on Instagram.

Some names that have supported Bitcoin also include:

• Mike Tyson. The legendary boxer recognized BTC’s value in 2015 and even launched a mobile Bitcoin wallet.
• Jack Dorsey. The owner of Square and former Twitter CEO is a famous Bitcoin investor.
• Snoop Dogg. In 2012, Snoop Dogg accepted BTC as a payment when fans were purchasing his album.
• Kanye West. He’s been a strong public promoter of Bitcoin, but he never made it clear how much BTC he actually owns.

Celebrities and high-profile personalities have a strong impact on BTC, especially market sentiment. Let’s say that one or two celebrities start selling their Bitcoin holdings. It reduces the coin’s popularity and makes other BTC owners worry about their holdings. That could lead to the Crypto Fear and Greed Index for BTC dropping to fearful, which is when the coin loses value. At that point, it’s not smart to sell Bitcoin, but the experts recommend waiting for the indicator to change for the better and BTC to gain worth.

Future Trajectory

The future is encouraging for Bitcoin and the entire crypto industry. If you check out price predictions, you will see that most experts agree that BTC will soon reach a new ATH. The majority of predictors put it over $100,000 in less than a year and over $500,000 by 2030. That makes Bitcoin a smart choice for both short and long-term investments.

One thing is certain — if the crypto market succeeds, Bitcoin will do well, too. Cryptocurrencies are becoming more important in the financial system every day. Therefore, now is a smart time to jump on board and expand your portfolio by adding BTC or other digital currencies that fit your preference.