BITCOIN

Should we analyze the price of bitcoin in euros (BTC EUR) or dollars (BTC USD)?

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Investing in Bitcoin is an activity that is attracting more and more individuals and professionals. But before making this type of investment, you probably ask yourself many questions, including the choice of the currency in which you must carry out your analyzes. So should we analyze the price of bitcoin in euros or dollars? We will answer these questions in this article while giving you some additional information on the historical evolution of this cryptocurrency over time and by telling you how you can analyze it for the months and years to come.  

Elements that can influence the price of this asset:

Analysis N°1

The number of bitcoin in circulation on the market is of course one of the main factors that can push the price of Bitcoin up or down in relation to demand.

Analysis N°2

Of course, the legislation and various regulations concerning crypto-currency can also influence the price of this value by slowing down its expansion in some countries.

Analysis N°3

Bitcoin can also suffer from a bad image or, on the contrary, benefit from a good image thanks to the publications of the various media and the communications that are regularly made about it in the generic or specialised press.

Analysis N°4

Bitcoin is also at the centre of a very active community of developers and users who also have a direct influence on the evolution of trends in this asset.

Analysis N°5

Finally, Bitcoin can also be influenced by the increasingly strong competition in the crypto-currency market, which is threatening the market share of this historic virtual currency.

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In which currency to analyze the price of Bitcoin?

First, let's answer the question that led you to consult this article and which concerns the currency in which you must analyze the price of bitcoin. In reality and as you probably already know, bitcoin is not directly linked to other financial markets and, unlike certain assets such as gold or oil, its price is not directly influenced by the currency in which it is listed.

You are therefore free to choose to analyze its price in euros or dollars or even in any other currency of your choice. When you go to make transactions on this cryptocurrency and buy it, you will also choose the currency in which you want to make this transaction.

If you are a French investor, it will also be easier for you to analyze the price of this security in your currency, namely the euro. But keep this in mind ! On some platforms or on certain graphics, the price of bitcoin can be expressed in dollars. You must therefore pay attention to this fact.

 

Historical analysis of the evolution of the Bitcoin price in euros:

Now that you know that you can analyze the price of bitcoin in euros, we suggest you discover what has been its historical evolution since its first listing to today.

So let's go back to a decade in 2009, a time when we heard little about bitcoin and when cryptocurrencies were still unknown to most investors. At that time bitcoin was worth very little and a single euro allowed you to buy around 1 tokens of this cryptocurrency, which equates to a price of 300 €.

Very soon after, at the end of 2012, the price of bitcoin had already changed and reached the threshold of € 9 / token.

However, we will have to wait until 2013 to witness a real surge in the price of this asset with the start of the market's craze for it. The price of bitcoin then begins to gain points with greater volatility which will not stop since then. We thus see between March and November that the price of bitcoin soars rapidly and reaches a first historic record at the level of 980 euros. This represents an increase of more than 10 But ultimately, bitcoin will end this year 2013 at the more reasonable level of 646 euros.

The drop observed at that time will last finally throughout the whole of 2014 with a bitcoin price which will drop from 646 to 221 euros. However, and from the following year, in 2015, Bitcoin finally regains its strength and begins a new upward trend. It will thus finish its race at 395 euros per token which represents an increase of 55% over the year.

In 2016, the price of bitcoin continued its momentum and gained new points with an overall annual increase of more than 41%. Thus, it will close the last session of the year at 945 euros.

The year 2017 will be a particularly interesting year for bitcoin and for the other emerging cryptocurrencies which will experience growing popularity. It is during this year that bitcoin is the subject of all attention and that the media start to talk about it. We are thus witnessing the achievement of a new record at 16500 euros or 19500 dollars during the month of December. But ultimately, the price of bitcoin will lose a few points before the end of the year and will fall to 13096 euros, which still represents an increase of more than 1385% in one year.

Finally, as you can see, 2018 was a rather negative year for bitcoin. We entered a bear market period at that time and the price of this cryptocurrency went from 13090 euros to 3533 euros. This drop was therefore around 73% over the year and left investors in doubt as to how to invest in this value in the future.

 

What are the elements that influence the price of Bitcoin in euros?

If you want to make a good analysis of the Bitcoin price in order to know how to invest on this value and decide to take a position to buy or sell, you must of course take into account the events which are most likely to have an influence. These events will of course be the same whether you analyze this value in euros or dollars and the currency of your choice here will not have a direct influence on future trends. To help you in this difficult task, we now offer you to discover a little more in detail the elements to watch.

There are indeed many factors that can influence the price of bitcoin in euros. Let us also remember that bitcoin is not a common value in the sense that this type of asset is relatively recent and therefore does not benefit from a precedent allowing to anticipate all the reactions of the market in the face of certain events. All of this leads us to say that predicting the future of bitcoin with great precision is almost impossible, especially if you plan to pursue a medium-term strategy. There is in fact no possible comparison between the price and the capitalization of bitcoin with other assets or markets. However, it remains possible to understand how this asset can behave over the long term, by looking at the real value that bitcoin offers people around the world. This is therefore the first indicator which you must take into account when anticipating this value.

Still among the indicators that you can analyze in order to determine in which direction the price of bitcoin is most likely to move, we find the transaction fees. Indeed, these fees can represent a brake on the adoption of this cryptocurrency as a currency of exchange. Most of the time, these costs did not exceed 1 euro but we also know for example that during traffic at the highest price in 2017, these costs reached records at more than 20 euros per transaction. However, this type of fee would not allow bitcoin to be attractive as a currency properly speaking, which would therefore tend to lower the price by lower purchases.

Still among the elements that you can use as part of your analysis of the bitcoin price, we will of course also retain competition from other cryptocurrencies which are more and more numerous to invade the market and which therefore increase the distribution of shares market between each. It goes without saying that if bitcoin remains the leader in this market, it can be influenced by these other currencies according to their news.

As we have seen in recent years, news and media coverage also play a very important role in the way bitcoin is considered by the market and can therefore also have a strong influence on the way its price evolves . We will therefore monitor all media trends about this cryptocurrency to anticipate such market reactions in the future.

Finally, we can also look at online merchants who are accepting bitcoin as a bargaining chip, which will tend to boost the price, just like the laws in force in some countries still reluctant to this type of currencies.

In all cases and in addition to this analysis based on news and market events, you must keep in mind that a good analysis of bitcoin also requires above all a complete and relevant technical analysis. So always keep an eye on the graphs of this value in order to detect the best signals.

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