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Rachel Welch

22 November 2022 77 Read Bitcoin

What Causes Bitcoins Volatility?

Whether you are interested in buying or selling Bitcoin, you may be wondering what causes the price to fluctuate. The answer is that there are many factors at play.One of the biggest reasons is the fact that there is only a limited amount of Bitcoins in circulation. A recent report showed that 18.7 million BTC are currently in circulation. This limited supply is one of the reasons why Bitcoin is so volatile.

Another reason is that there is no central authority to regulate the value of the coins. This lack of authority may be a blessing in disguise, but it can also cause major fluctuations in the supply.Another reason for the volatility is the fact that not many people are willing to take the risk. Traders who are less risk averse may be looking only at the short term.