Considering the current state of the global economy, what is the price of Bitcoin today November 7, 2021? The answer will probably be less than you think. Last week, the US Federal Reserve raised the key lending rate by half a percent, marking the biggest increase in 20 years. The move spurred more investor concern about higher borrowing costs and inflation. The price of bitcoin fell by a bit as well, reversing the bull run it started earlier this year.
The media coverage helped the cryptocurrency industry to take off, with thousands of altcoins popping up to match the growth of Bitcoin. Meanwhile, governments, mathematicians, economists, and tech experts debated how to regulate and adopt the cryptocurrency into mainstream use. In the meantime, the price of Bitcoin fluctuated wildly. Its lowest point was around $3,236 in December, while it climbed to seven-figure levels at the end of 2019.
While the price of Bitcoin is largely dependent on the amount of demand and supply, other factors can affect the price of the digital currency. For example, the number of cryptocurrencies continues to rise as more merchants and regulators adopt them as acceptable forms of payment. In such a case, consumers may believe that other coins are more valuable than Bitcoin, driving the price down. Conversely, if the sentiment turns in the opposite direction, demand for Bitcoin will rise.