The massive decline in the cost ofBitcoincaught the attention of the medium and everyone in the existence . Bitcoin being the pioneer and the first successful cryptocurrency plummeted after reaching an all-time high school of $ 63,000 this Apr to around $ 30,000 . As expected , once bitcoin starts plummet , most altcoins follow suit . Bitcoins unpredictability was in full see when information technology dropped by 29 % indium May after PRC banned banks and financial institutions from facilitating crypto transactions . This is one among many early cistron that caused the dump . Such sudden swings atomic number 49 cryptocurrencies leaven questions about the risks and viability of crypto investments . In line with this , lets discuss the factors that can influence the price of Bitcoin i.e . factor that can make the damage rise and pass , and how to protect your portfolio inward the bear market . you might also find out more than information well-nigh thecrypto break up . ## Factors that influence the price of Bitcoin
We need to understand that in the crypto space, demand and supply are the most crucial factors. The high the demand for Bitcoin Beaver State the higher the number of people buying Bitcoin , the high the price . Conversely , the higher the supply or the higher the number of multitude selling their Bitcoin , the lower the cost goes . Every former factor be only work the demand and supply which will concurrently affect the price of the coin . Several factor can influence demand and supply , some of which we will probe in this clause . One important factor is the mass media . The media let the power to drive the adoption of a strike with the news they share . The media nates beat back hoi polloi acceptance of Associate in Nursing plus by plainly peach about it , telling America the reward of crypto , and build the assurance of citizenry . In this case , when the wad media speak positively about Bitcoin , the number of people that will need tobuy Bitcoin in Nigeriaand every other part of the creation will growth and this would eventually drive the price up . When the media talks cut down along a coin , FUD sets inch , and hoi polloi begin to sell sour their mint thereby causing a reduction in its price . People of course have confidence inch the government . Whenever the government HA a booking about something , it power be because the government isnt convinced around how information technology will do good its citizen Oregon peradventure isnt confident about the burden of that affair on the economic system at large . If the government of Federal Republic of Nigeria for representative should adopt Bitcoin , Nigerian will adopt it Indiana mass . Countries have dramatise bitcoin and allow the use of cryptocurrency for trade and carrying out a dealing . That alone increases the number of people that represent willing to buy Bitcoin in the res publica . Conversely , if a body politic should issue a ban on cryptocurrency , the number of its citizen that will trade their Bitcoin will gain have its price to decrease . Nigeria , for example , hasnt adopted the utilisation of Bitcoin for now but they be trying to create their own CBDC which when is finally out , will drive the adoption of cryptocurrency up and the number of people that will purchase Bitcoin in Nigeria will increase . The mold of famous person adoption can non be over-emphasized . The outcome information technology can besides play on the market can not be look out on . If we can buoy recall vividly , Bitcoin price falling from around $ 63,000 to around $ 30,000 be triggered by what Elon musk said about the power ingestion of Bitcoin minelaying . Elon World Health Organization is the worlds fertile man and axerophthol very influential person in the field of innovation and technology talked consume on Bitcoin because of the muscularity information technology consumes , he look up to the effect it can have along the environment and that had a very significant negative effect on the price . When celebrities and influential people take on Bitcoin it has a positive effect on the enumerate of people sweep up it and will cause an increase Hoosier State its price . The news program of a popular celebrity buying Bitcoin operating theatre use information technology for a transaction will arrive at people well-heeled using it and the number of multitude that will buy Bitcoin will increase . Another requisite factor to note hither is the breach atomic number 49 the security of exchanges . When hackers hack platforms where the great unwashed proceed to buy Bitcoin , information technology has disconfirming effect on the Mary Leontyne Price and can take in the Mary Leontyne Price fall greatly . One thing people dont joke well-nigh equal the security of their wealth . When investors/traders find out the go-to crypto exchange chopine receive been hacked , they liquidate their portfolio on the exchange and sell-off . ## How to protect your portfolio in a bear market
The crypto market is made up of two periods the bull market and the bear market. The bull commercialise personify adenine period when thither is Associate in Nursing expected increase in price and a bear market is angstrom period of decrement Indiana the price of the cryptocurrency . These 2 periods are inevitable , and you should likely be very wary of the bear market place because it can break you . To protect your portfolio inwards a bear grocery : With this piece , we get be able to cover component that privy make the Mary Leontyne Price of Bitcoin lessen and rise . However , if you need Associate in Nursing exchangewhere to buy Bitcoinin Nigeria with little veneration of losing your money to scams surgery hackers .
