The Socially Agreed Upon Bitcoin (BTC) Price

Inflation is the reason for overall increase in prices and cost of living in a country.  The purchasing power of one unit of currency decreases. With inflation, the value of tangible assets and stocked commodities goes up and the purchasing power of one unit of fiat currency goes down.  Therefore, it is natural for people to look for alternative methods to store their value – therefore, Bitcoin (BTC) and other kinds of cryptocurrency tokens.

Sustained inflation sets in when money supply is more than the economic growth.  The central bank takes needed steps to keep inflation within manageable limits.  Keeping inflation under control is very important to keep the economy running smoothly.

HODL Bitcoin

While the purpose of any investment is about making profits, when profits don’t accrue – the investment loses charm.  “HODL” is the mantra of initiation for any Bitcoin investor.  Investors in the current scenario are waiting for the bull market to return.  They are willing to wait and hold until things get better.

Short-Term Liquidation of Bitcoin

Holding an asset that has declined 70% in less than a year is scary for many. Some of them are used to the dramatic ups and downs of BTC price though. Profit makers are looking to benefit from short-term liquidations.

To Liquidate is about converting property or assets into cash or cash equivalents by selling them on the open market. Short liquidation is risky, and it is about selling borrowed security and buying it back at a lower price.  When BTC holders short sell, those who can afford tap into the opportunity.  Those who short sell hope for the price to go down and they hope to rebuy it then.

Socially Agreed Upon Bitcoin (BTC) Price

However, for how long?  So, what will make things better in the Bitcoin market? Who is going to add in the magic ingredient for the cryptocurrency market to regain its glory?

The price that people are willing to pay for Bitcoin is indeed socially agreed upon. Despite, BTC existing in computer network, there is production cost associated with it.

Once upon a time, Bitcoin investment used to be a thing of techy investors; however, mainstream companies and large investment funds are stepping in to allocate their funds for Bitcoin and other kinds of Tokens.

Investment Bankers And Bitcoin (BTC)

Investment bankers are financial institutions that organize large, complex financial transactions like mergers and initial public offering underwriting.  It is the special segment of banking operation which helps organizations to raise capital.  Investment bankers provide financial consultancy services to organizations. Technically, they are the real decision makers – the market makers.

Investment bankers know how to attract the interest of investors and they know what should be made visible to the market and what should not be made visible to the market. They influence the quotes of the two-sided markets, thus in part dictating the bid and ask price of assets.  When investment bankers’ step into the world of crypto, they are bringing their nature into the cryptocurrency market.  Obviously, by hook or crook, they are doing their part in making and breaking the market sentiments.

So, who will be setting the socially agreed upon Bitcoin (BTC) price? Investment Bankers will eventually do the job of setting the BTC price by influencing market sentiments. They are already in the market and they are decentralizing things their way.