Why are Bitcoin prices fluctuating?

DWQA QuestionsCategory: QuestionsWhy are Bitcoin prices fluctuating?
Editor Staff asked 2 weeks ago

Why are Bitcoin prices fluctuating?

1 Answers
Editor Staff answered 2 weeks ago

The price of bitcoin is fluctuating because it is very volatile in nature. Since the number of bitcoins is limited in circulation, new bitcoins are created at a decreasing rate. It means that demand must follow this level of inflation to keep the price stable. The bitcoin market is still relatively small as compared to other industries. Therefore it does not take significant amounts of money to move the market price up or down.