Bitcoin is famously known for its strong volatility, and its value is influenced by many economic, political, and technological factors. Currently, some key factors that can affect the price of Bitcoin include:
1. **Interest rate policies and the global economy**:
Interest rates in many major countries, especially the US, can impact investor sentiment. When interest rates are high, investors tend to shift to safer assets, reducing interest in Bitcoin.
2. **Legal regulations**:
Legal policies regarding cryptocurrency in each country, such as the US, EU, or other major regions, can significantly affect the price of Bitcoin. If there are favorable signs from regulatory agencies, the price usually increases.
3. **Bitcoin Halving events**:
Bitcoin is expected to enter a "halving" cycle in 2024, reducing the amount of new Bitcoin created. Historically, the price of Bitcoin tends to rise before and after halving events.
4. **Market sentiment**:
News from major organizations like BlackRock or traditional banks entering the cryptocurrency space can have a positive impact. However, if major scandals or bad news arise, the price may drop sharply.
### Perspective:
- **If you are investing short-term**, pay attention to news and technical analysis, as Bitcoin's price fluctuates very quickly.
- **If investing long-term**, Bitcoin is still seen by many as a potential safe-haven asset, especially when the traditional financial system is facing crises.
