When we hear about cryptocurrencies, it is automatic that we think of Bitcoin; the reason is that over the years, it has positioned itself and maintained itself as the digital currency whose creation was not in vain. To learn more about BTC visit this site for more information about the features of bitcoin trading.
Volatility has characterized all cryptocurrencies, but although Bitcoin (BTC) has experienced drastic changes in its value, it is considered the digital currency with the highest market capitalization.
Bearish and bullish trends are the order of the day in the digital financial market, which means that the supply and demand of cryptocurrencies are constantly active.
What does the Bitcoin rally refer to?
The term rally has different adaptations according to the field in which it is used, not only in finance but also in the military area or the science of medicine.
From a financial perspective, the concept of a rally refers to the significant increase in the price of an asset or share, either in the traditional financial market or in the digital market.
This increase occurs suddenly; even for those who analyze the trajectory of investments, it can happen as an adjustment to a downtrend or sharp fall or, in turn, an increase from a base prepared to drive a trend to the downside risk.
We know that cryptocurrencies move due to the news and the support of their followers, which is why the BTC rally can be generated for various reasons, causing a positive or negative impact on its value.
Usually, one of the most expected moments in which the Bitcoin rally occurs is after the quarterly results of the stock market, where many actions and digital assets are affected or benefited from them.
On the other hand, news regarding regulations or trends in political rules in a certain period also influences the value of Bitcoin; the said value will depend on whether or not the information favors the value of crypto assets.
The duration of the rally is relatively short; the rise in prices can last a session or even extend to a couple of weeks; it all depends on the supply and demand that occurs concerning the digital asset that is subject to the price increase.
The Most Important Rallies of Bitcoin
The volatility of Bitcoin is one of the characteristics that has allowed rallies around digital currencies to be generated; many people see this characteristic as risky but do not consider it a point in favor of investments in crypto assets.
Bitcoin has shown the world of finance that despite such abrupt variations in its price, it can position itself and maintain itself in the digital financial market.
Since the year of its creation, when 1 BTC had a value relative to 1 US dollar, a meager and accessible price for many, in just a couple of years since its creation, the first rally occurred for the year 2011.
This year it reached an incredible value of almost 30 dollars per unit of Bitcoin, which marked a downward trend that brought its price to nearly 7 dollars at the end of that same year.
Then in 2013, BTC suffered a drastic change again; this time, its market price reached USD 280; this happened in April due to significant purchases of the digital currency in Cyprus; after this event, Bitcoin returned to a fee under almost 70 dollars.
That same year it managed to reach $1,000 per unit for news generated in the market, and it plummeted almost in half due to decisions by the Chinese government to establish regulations on the new cryptocurrency and, as expected, its subsequent low price.
In 2017, BTC again experienced a rise that left significant profits for all those investors who deposited their long-term savings; a rally originated where the value of this digital asset reached $20,000.
Over the years, Bitcoin has gone through a significant number of price increases, influencing its market capitalization, contributing to its growth, and, therefore, increasing investments.
These types of financial events mark a before and after in the trends of cryptocurrencies, which helps to predict in a certain way the consequences that possible investments in these financial instruments will bring.
Before investing, you must know the financial market you want to invest in; let’s remember the volatility of cryptocurrencies.