Why is Bitcoin so volatile? Several factors explain the high volatility of Bitcoin: Limited supply and demand: With a maximum supply of 21 million BTC, variations in demand (often influenced by news or market sentiment) lead to significant price movements. Speculation: A large portion of Bitcoin investors are short-term speculators, which amplifies fluctuations. News and regulations: Announcements of regulations (such as in Senegal or elsewhere in Africa), exchange hacks, or decisions by major financial institutions can cause sudden rises or falls. Emerging adoption: Bitcoin is still a relatively young market and less liquid than traditional markets, which accentuates variations. Macroeconomic events: Monetary policies, inflation, or economic crises (such as those affecting the CFA franc in the UEMOA region) influence the perception of Bitcoin as an alternative. To provide context, in Senegal, where access to cryptocurrencies is growing, volatility can be seen as an opportunity for local traders, but also as a risk for those considering Bitcoin as a store of value against the inflation of the CFA franc.

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