In the simplest sense, Bitcoin’s price is determined through a process of price discovery on exchanges, like GDAX, where it and other cryptocurrencies are bought and sold. But the bigger picture is more complex.
Many factors, like regulation, possible regulation, or comments from a government official can affect whether people want to buy in on the crypto game. And that affects the price.
One thing is clear, though. It’s been a “wild ride,” says Christian Catalini, an assistant professor at MIT Sloan School of Management who focuses on cryptocurrencies.
After all, this time last year, the price of Bitcoin was around $1,000. It eventually shot up to over $19,000 before dropping down to its current value.
But Tether isn’t the only issue. What follows isn’t a comprehensive list, but instead a look at some events that have transpired with Bitcoin and other cryptocurrencies lately that affect how people think about them—and whether or not they give into the animal spirits of the Bitcoin frenzy and make a buy. Read more from popsci.com…
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