Bitcoin Markets & Price

Bitcoin’s value comes from its limited, transparent supply, and independence from government control, making it a truly unique and popular digital currency.

A common piece of criticism is that Bitcoin is not backed by anything, but neither are fiat currencies. How does this work for Bitcoin?

Financial markets facilitate the fair trading of financial assets across many buyers and sellers. We explain how this works.

Trying to time the market is difficult. In this article we help you to make the most out of your Bitcoin purchase.

Bitcoin has historically been a volatile asset. This volatility is primarily due to the nascency of the currency, and is expected to decline as the market matures.

Dollar-cost averaging is a popular investment strategy because of its risk mitigation, simplicity, and wide applicability to almost any asset class, including Bitcoin.

The Bitcoin network is supported by miners, nodes, and users, who may be retail investors, traders, merchants, and institutional and corporate investors.

Uncontrolled hyperinflation in Zimbabwe caused the monetary system to become virtually ineffective, reduced the quality of life, and stunted progress.

Learn how bitcoin's price is determined by supply and demand and how factors like mining, regulations, and competition impact its value, leading to volatility.

Explore the potential implications of a U.S. Strategic Bitcoin Reserve, examining how such a reserve could impact federal debt, economic stability, and the future of Bitcoin. Discover the benefits and challenges of integrating bitcoin into national reserves.

Learn the basics of money creation and discover the key players involved, including the Federal Reserve and the U.S. Treasury. Understand how digital and physical money are generated and managed in our financial system.

Financial repression relates to how governments use policies like interest rate caps and capital controls to manage debt and influence the economy. Understand its effects on savings and investment.

Bitcoin is connected to the global economy. Bitcoin’s price can be affected by the health of economies, other asset prices, and legislation. Bitcoin mining is heavily affected by the energy market.

A bear market is characterized by declining asset prices and negative investor sentiment. Bitcoin markets may experience a bear market at different times than equity markets.

With a market cap of about $1.3 trillion, bitcoin accounts for less than 0.1% of all of the world’s aggregate wealth.

A bull market is characterized by a sustained increase in asset prices, investor optimism, and positive news. Bitcoin markets may experience a bull market at different times than equity markets.

A Bitcoin ETF is an exchange-traded fund that tracks the price of bitcoin, without having to own the bitcoin itself. Is it smarter to buy Bitcoin or an ETF?

A stablecoin is a digital token, usually issued by a centralized party, that is intended to maintain a constant peg with some other asset, usually a fiat currency.

Collateralized loans are utilized in house mortgages, car loans, business loans, and margin trading. Bitcoin can be utilized as collateral for fiat currency loans.

A candlestick chart visually represents the price movements of an asset. They are used by traders to make short-term predictions about price action.

Technical analysis is used by traders to identify and predict trends in asset prices based on historical price movement, volatility, and volume.

The stock-to-flow model is used to create a standardized metric of asset scarcity. Investors use the model to gain insight about the fair market value of Bitcoin.

The Efficient Market Hypothesis states that asset prices reflect all available information and trade at their fair value. Therefore, through passive investing, consistent risk-adjusted excess returns are impossible.

Fundamental analysis aims to determine the real value of an asset based on any available information. How is this done on Bitcoin since it has no cash flows?

Performance metrics help investors assess the success of an investment or portfolio. For Bitcoin, these metrics are not the same as any other asset.

There are many ways for investors to transact. Market and limit orders are commonly used to trade assets, but more sophisticated strategies that utilize these orders are also possible.

The bitcoin market has grown rapidly in recent years as a result of a growing variety of market participants, including financial institutions, regulatory shifts, and derivatives products.

Deflation is a general decrease in the price of goods and services. This change will influence the economy in several ways, but is primarily negative.

As Bitcoin markets mature, financial institutions are creating new financial products to gain exposure to the market, with varying amounts of risk.

Brokerages and exchanges are two different models that allow traders to buy and sell assets. The functional differences impact how traders and investors can use the two types of platforms.

Discover why mastering depth charts is key for traders: a visual tool for real-time supply & demand insights, crucial for market strategies.

Learn how to short bitcoin in this complete guide that explains the concept, risks, and strategies. Short sellers can profit from a fall in bitcoin's price.

Portfolio management is the selection of assets and investments to ensure that an investor’s portfolio is consistent with their financial goals.

Leveraged Bitcoin trading magnifies positive and negative returns as Bitcoin’s price changes. This allows an investor to gain additional exposure to Bitcoin without the burden of producing capital.

A Bitcoin flash crash is a large and rapid decline in Bitcoin’s price. This can be triggered by algorithmic trading issues or individual orders large enough to move the market.

Inflation is the general increase in price and thus decrease in currency value over time. Learning how inflation decreases the value of currency is useful for spending and saving decisions.