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What makes Bitcoin go up & down?

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Hey crypto fans 🙂 


According to Google Trends, the price of Bitcoin is one of the most commonly searched topics related to digital currency. 
 
Some days, the price of Bitcoin shoots up while other days, it goes down.
How is the Bitcoin price determined and how does its value increase or decrease? 
 
Bitcoin price history and fluctuation

 

The initial price of Bitcoin
Following its release as open-source in early 2009, Bitcoin’s value was practically next to nothing. Crypto users mainly traded with it as a hobby. The first crypto transaction ever recorded happened in 2010 when a crypto-miner in Florida bought two pizzas for 10,000 BTC. Later in July 2010, the first real price of a single Bitcoin went from around USD$0.0008 to USD$0.08 when it skyrocketed by 900% in five days.

 

The value of Bitcoin when the crypto craze erupted
By 2011, the value of Bitcoin steadily increased as it took parity with the US dollar and recorded its first 'bubble' of USD$31 before its first price drop. In the following year, Bitcoin gradually started to take off due to the rise of new crypto exchanges in the market, as well as miners in China. In 2013, the world was taken by the crypto craze when Bitcoin soared from a virtually trivial amount to a whopping USD$1,000.

 

Highest recorded Bitcoin price
During 2017, the price of Bitcoin reached its first record high. It started in August when it passed USD$3,000 for the first time. It broke USD$5,000 and USD$6,000 later on, until it topped at USD$8,004.59 in November. By December 2017, the price of Bitcoin reached USD$17,900. On December 17, it rose by 5% and recorded an all-time high of USD$19,783. It is still the highest price Bitcoin has ever hit as of today.

 

The fall of Bitcoin
Despite the great year Bitcoin had in 2017, its price suffered a continuous decline in the next year. BTC value dropped by 50% in February 2018. For the 10th anniversary of the digital currency in October 2018, Bitcoin maintained its price above USD$6,000. By December 2018, the price plummeted below USD$3,300.

 

The value of Bitcoin in 2020
Despite the meteoric rise and fall of Bitcoin throughout the years, crypto experts remain positive with the potential of the digital asset, especially this year. This is because Bitcoin is foreseen to soar to a new all-time high of USD$20,000 in 2020.

 

How is Bitcoin valued?

 

The price of Bitcoin has been historically volatile, but what makes Bitcoin go up and down? In the most basic sense, trading determines the price of Bitcoin.

What gives Bitcoin value is the last trade conducted on a crypto exchange. This means the rise of buying pressure is what makes Bitcoin go up while the increase in selling pressure lowers its price instead.

 

What is driving Bitcoin price: Main factors that affect BTC

 

It’s not uncommon to see BTC’s value fluctuate to a 5% or even 10% difference in just a day. Why so?

 

Perceived store of value
A store of value means an asset is seen to be useful in the future. Like gold or silver, you can mine a fixed quantity of 21 million BTC. Meanwhile, fiat money is dynamically regulated by governments. 

 

The intrinsic value of the cryptocurrency in the future

As a store of value and method of value transfer, the changing views in the intrinsic value of Bitcoin affect its price. This makes the Bitcoin price fluctuate based on significant events that happen each day.

 

Risks from BTC investors with large holdings
What makes Bitcoin go up or down also relies on its users. Investors with Bitcoin holdings of more than USD$10 million risk severely disturbing the market if they liquidate that much of it. 

 

Losses and security vulnerabilities
It’s no secret that Bitcoin has suffered major losses and security breaches through the years. From thefts and hacks, these highly publicized incidents contribute to the question of 'Why does Bitcoin change value?'.

 

Adoption and government regulation
Crypto has been speculated to move into mainstream finance. With that, the adoption and government regulation of cryptocurrencies can increase the buying pressure of Bitcoin thus affecting its price.

 

Bitcoin’s latest movement - Jan to Aug 2020

 

At the time of writing, 1 BTC is valued at USD$11,746.30 and it is expected to further go up by the end of the year despite the recent COVID-19 outbreak.

In March 2020, the value of Bitcoin crashed to USD$5,000, along with several markets around the world. Though unlike traditional markets, it returned to the spotlight and even rallied year-to-date highs due to an influx of new users. There was also the much anticipated Bitcoin halving this year that aided its boost, as well as a ‘Make Bitcoin Great Again’ effort in the US.

 

In the past few months, 1 BTC has been hovering around USD$10,000, an increase of over 30% since the start of 2020. The finite supply of Bitcoin made some investors consider it a safe asset like gold. Amid the lockdown, there has been an 8.8x increase due to Bitcoin purchases from both Boomers and Gen X. It is speculated that the price of Bitcoin will reach around USD$20,000 this year.

 

Why is Bitcoin going up so much?

 

Bitcoin almost always has an incredible recovery no matter the issue. Crypto Research Report (CRR) published an analysis in June 2020 predicting Bitcoin’s future price to reach almost USD$400,000 by 2030. With Bitcoin’s price right now, it appears to be a strong possibility. 

 

Commodity strategist Mike McGlone pointed out how unprecedented central bank stimulus measures and new quantitative easing help the store of value of Bitcoin. He even likened it as the digital version of gold.

 

Moreover, with the second peak of COVID-19 cases, experts believe it can affect Bitcoin and make it go up. It is foreseen by experts that the scenario can incite more quantitative easing as it further depreciates the dollar.

 

'With a fixed supply and increased demand, you can't ignore the attractiveness of cryptocurrency assets in these unprecedented times,' finance professor Andros Gregoriou concludes. 'A currency like Bitcoin, which holds its value—even increases it—will be very attractive to use, buy, hold and transact with.'
 
How about you, how often do you check the Bitcoin price?

 

Cheers,
Karl
Bitcasino.io

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1 hour ago, Bitcasino.io said:

What-makes-Bitcoin-fluctuate.jpg
 
Hey crypto fans 🙂 


According to Google Trends, the price of Bitcoin is one of the most commonly searched topics related to digital currency. 
 
Some days, the price of Bitcoin shoots up while other days, it goes down.
How is the Bitcoin price determined and how does its value increase or decrease? 
 
Bitcoin price history and fluctuation

 

The initial price of Bitcoin
Following its release as open-source in early 2009, Bitcoin’s value was practically next to nothing. Crypto users mainly traded with it as a hobby. The first crypto transaction ever recorded happened in 2010 when a crypto-miner in Florida bought two pizzas for 10,000 BTC. Later in July 2010, the first real price of a single Bitcoin went from around USD$0.0008 to USD$0.08 when it skyrocketed by 900% in five days.

 

The value of Bitcoin when the crypto craze erupted
By 2011, the value of Bitcoin steadily increased as it took parity with the US dollar and recorded its first 'bubble' of USD$31 before its first price drop. In the following year, Bitcoin gradually started to take off due to the rise of new crypto exchanges in the market, as well as miners in China. In 2013, the world was taken by the crypto craze when Bitcoin soared from a virtually trivial amount to a whopping USD$1,000.

 

Highest recorded Bitcoin price
During 2017, the price of Bitcoin reached its first record high. It started in August when it passed USD$3,000 for the first time. It broke USD$5,000 and USD$6,000 later on, until it topped at USD$8,004.59 in November. By December 2017, the price of Bitcoin reached USD$17,900. On December 17, it rose by 5% and recorded an all-time high of USD$19,783. It is still the highest price Bitcoin has ever hit as of today.

 

The fall of Bitcoin
Despite the great year Bitcoin had in 2017, its price suffered a continuous decline in the next year. BTC value dropped by 50% in February 2018. For the 10th anniversary of the digital currency in October 2018, Bitcoin maintained its price above USD$6,000. By December 2018, the price plummeted below USD$3,300.

 

The value of Bitcoin in 2020
Despite the meteoric rise and fall of Bitcoin throughout the years, crypto experts remain positive with the potential of the digital asset, especially this year. This is because Bitcoin is foreseen to soar to a new all-time high of USD$20,000 in 2020.

 

How is Bitcoin valued?

 

The price of Bitcoin has been historically volatile, but what makes Bitcoin go up and down? In the most basic sense, trading determines the price of Bitcoin.

What gives Bitcoin value is the last trade conducted on a crypto exchange. This means the rise of buying pressure is what makes Bitcoin go up while the increase in selling pressure lowers its price instead.

 

What is driving Bitcoin price: Main factors that affect BTC

 

It’s not uncommon to see BTC’s value fluctuate to a 5% or even 10% difference in just a day. Why so?

 

Perceived store of value
A store of value means an asset is seen to be useful in the future. Like gold or silver, you can mine a fixed quantity of 21 million BTC. Meanwhile, fiat money is dynamically regulated by governments. 

 

The intrinsic value of the cryptocurrency in the future

As a store of value and method of value transfer, the changing views in the intrinsic value of Bitcoin affect its price. This makes the Bitcoin price fluctuate based on significant events that happen each day.

 

Risks from BTC investors with large holdings
What makes Bitcoin go up or down also relies on its users. Investors with Bitcoin holdings of more than USD$10 million risk severely disturbing the market if they liquidate that much of it. 

 

Losses and security vulnerabilities
It’s no secret that Bitcoin has suffered major losses and security breaches through the years. From thefts and hacks, these highly publicized incidents contribute to the question of 'Why does Bitcoin change value?'.

 

Adoption and government regulation
Crypto has been speculated to move into mainstream finance. With that, the adoption and government regulation of cryptocurrencies can increase the buying pressure of Bitcoin thus affecting its price.

 

Bitcoin’s latest movement - Jan to Aug 2020

 

At the time of writing, 1 BTC is valued at USD$11,746.30 and it is expected to further go up by the end of the year despite the recent COVID-19 outbreak.

In March 2020, the value of Bitcoin crashed to USD$5,000, along with several markets around the world. Though unlike traditional markets, it returned to the spotlight and even rallied year-to-date highs due to an influx of new users. There was also the much anticipated Bitcoin halving this year that aided its boost, as well as a ‘Make Bitcoin Great Again’ effort in the US.

 

In the past few months, 1 BTC has been hovering around USD$10,000, an increase of over 30% since the start of 2020. The finite supply of Bitcoin made some investors consider it a safe asset like gold. Amid the lockdown, there has been an 8.8x increase due to Bitcoin purchases from both Boomers and Gen X. It is speculated that the price of Bitcoin will reach around USD$20,000 this year.

 

Why is Bitcoin going up so much?

 

Bitcoin almost always has an incredible recovery no matter the issue. Crypto Research Report (CRR) published an analysis in June 2020 predicting Bitcoin’s future price to reach almost USD$400,000 by 2030. With Bitcoin’s price right now, it appears to be a strong possibility. 

 

Commodity strategist Mike McGlone pointed out how unprecedented central bank stimulus measures and new quantitative easing help the store of value of Bitcoin. He even likened it as the digital version of gold.

 

Moreover, with the second peak of COVID-19 cases, experts believe it can affect Bitcoin and make it go up. It is foreseen by experts that the scenario can incite more quantitative easing as it further depreciates the dollar.

 

'With a fixed supply and increased demand, you can't ignore the attractiveness of cryptocurrency assets in these unprecedented times,' finance professor Andros Gregoriou concludes. 'A currency like Bitcoin, which holds its value—even increases it—will be very attractive to use, buy, hold and transact with.'
 
How about you, how often do you check the Bitcoin price?

 

Cheers,
Karl
Bitcasino.io

That is great information that I didn't know about now I see how bitcoin goes up and down I was asking for that so thank's for sharing  this 

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Although your topic is relatively long, but it contains important information about the history of Bitcoin and its price change between high and low, and any member of this forum should read this topic and understand it well, for me I think that is one of the most important reasons that  to the rise and the decrease in the price of Bitcoin is the amount of supply and demand in the crypto market, and there are also some global events, mining, and some hacking operations that occur in the crypto world.

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Definetely worth reading all of it. I bookmarked the page and will come back to read again as this post explains a lot about the price movement of our Bitcoin. About the concerns some people have for the price I want to answer that I treat Bitcoin as an investment. I don't lown a lot but I try to make and buy when I can and not selling. Price can go down with another wave of the covid 19 virus and for me it will be a great time to buy more.

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I think we are all in crypto waiting for one thing, which is the decoupling of bitcoin market from the stock market because whenever the stocks are dumping we see bitcoin follows, we need it to decouple so it attracts more investors to make the marketcap bigger and not controlled by whales.

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What makes prices rise and prices fall are the buyers and sellers, if someone buys, it has the effect of changing the price to go up and vice versa  The amount or size of the price changes depending on the quantity of bitcoins purchased and the circulating supply

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On 9/24/2020 at 12:34 PM, Mosharraf said:

Bitcoin is a very popular and expensive currency in today's world, it is natural that the price of Bitcoin will go up and down, because Bitcoin is not a stable currency, the price of Bitcoin depends on its traders, the more Bitcoin traders go and the more they trade, the higher the price.  Bitcoin users basically set the price

I will suggest you the check what @Nikel_jery commented. It is not about the traders, it is about demand and supply. Although, if traders increase, the demands may increase but the main factor is the demands and supply. 

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@Yomose I think demand , it's reaming supply , mining speed are served reason behind a coin pump or dump in market .

whenever bitcoin is in demands ( buying order are high as compared to selling ) then bitcoin price always perform well as well it's price also .

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There are several factors that influence the price of bitcoin. one of the factors that affects the value of coin is the fake news being heard by people who holds Bitcoin and this cause a panic and sold their bitcoins. Others are economic conditions, politics or some news and also the government's actions on bitcoin.

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On 9/22/2020 at 11:53 AM, Bitcasino.io said:

Bitcoin almost always has an incredible recovery no matter the issue. Crypto Research Report (CRR) published an analysis in June 2020 predicting Bitcoin’s future price to reach almost USD$400,000 by 2030. With Bitcoin’s price right now, it appears to be a strong possibility. 

We do not know what the process of bitcoin will be by 2030, but it is clear and possible that the price will worth more than $20000, it can even worth $100000. But, getting to $400000 may not be possible. I too is only just predicting like analyst. This is just my opinion. 

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The price of the cryptocurrencies  cannot be predicted. But sometimes outside area and people also effect in the price. Because lack of trading or investment will automatically effect the price of the cryptocurrencies. And also the crypto whale change the price sometimes. But your post is so informative  about this. 

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On 9/22/2020 at 4:38 PM, Bitcasino.io said:

the price of Bitcoin reached USD$17,900. On December 17, it rose by 5% and recorded an all-time high of USD$19,783.

I expect BTC price to cross all time high value i.e. more than $20K for each BTC 😉.

On 9/22/2020 at 4:38 PM, Bitcasino.io said:

It is speculated that the price of Bitcoin will reach around USD$20,000 this year.

I also expect the bullish trend for BTC by the end of this year and I have seen some green signals like BTC circulating supply is finding its way to the wallets of small investors which is a good sign of increased BTC adoption rates to go for the mainstream mass adoption trends. 

By the way, @Bitcasino.io , as you love to hear our point of view, I can be that one who loves to hear back your own personal opinions 😊 What do you think BTC price can reach $20K mark by the end of this week ? If yes, what are the strong signs that you have seen to give such milestone ? 

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13 hours ago, Whited35 said:

I expect BTC price to cross all time high value i.e. more than $20K for each BTC 😉.

I also expect the bullish trend for BTC by the end of this year and I have seen some green signals like BTC circulating supply is finding its way to the wallets of small investors which is a good sign of increased BTC adoption rates to go for the mainstream mass adoption trends. 

By the way, @Bitcasino.io , as you love to hear our point of view, I can be that one who loves to hear back your own personal opinions 😊 What do you think BTC price can reach $20K mark by the end of this week ? If yes, what are the strong signs that you have seen to give such milestone ? 

Thanks, @Whited35

 

If you take into account bitcoin mining difficulty, number of BTC transactions per day, number of BTC mentions in social media & news, number of BTC bought by investment companies, prices for BTC futures/options, and analyse all of these, you might get some prediction. But even then it might not be correct 🙂 In my opinion it won’t reach the $20K, maybe somewhere $13K...

 

Cheers,

Karl

Bitcasino.io

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6 hours ago, Bitcasino.io said:

But even then it might not be correct 🙂 In my opinion it won’t reach the $20K, maybe somewhere $13K...

Thanks @Bitcasino.io AKA Karl for such a smart reply 😊Nothing is 100% certain for Bitcoin's market and future price. Anyway, we will be just smiling if Bitcoin's price crosses $13K mark to reach $20K . Fortunately, I bought BTC when its price dropped below $5K and patiently waiting its price to increase. 

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Wow, this post is very good, I clarify some despite the abysmal differences with Fiat currencies, the Btc is still governed by the law of supply and demand of course I am one of those who thinks that this currency is going to break its ceiling abruptly. and it can be located at 100K.

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i think that bitcoin can go down and up for any reason, hype polytical news, altcoins volatility, any hack of cryptoexchange and many more reasons, including whales that buying btc for more than 10 millions dollars at monent 

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Sometimes the some trading can be for the whales that buy or also sell and that the Bitcoin falls in value or rises in value

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In my opinion, the price of BTC depends on the s & p 500, world news and also the news of the cryptocurrency world. I also read that it was time to compare the BTC exchange rate with the price of gold

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On 9/22/2020 at 7:56 AM, adamramis said:

That is great information that I didn't know about now I see how bitcoin goes up and down I was asking for that so thank's for sharing  this 

I think that the price of BTC will stabilize and begin to rise at the end of the year, with 2021 being the year of the perfect take-off of BTC.

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Bitcoin is number one. A motivating factor is being created by lowering the value of the currency so that Bitcoin holders go out to sell and thus, large buyers can acquire the cryptocurrency in the market

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Wow, this publication is very good, I clarify some doubts about the differences with Fiat currencies, the Btc is still guided by the law of supply and demand of course I am one of those who thinks that this currency will cost twice its value. May Cost Double But Less Than Your Value By Demands

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Bitcoin is a mainstream and costly cash in this day and age, it is characteristic that the cost of Bitcoin will go all over, in light of the fact that Bitcoin is certainly not a steady money, the cost of Bitcoin relies upon its dealers, the more Bitcoin merchants go and the more they exchange, the higher the cost. Bitcoin clients fundamentally set the cost

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Very good explanation and a nice history lesson is given in this amazing post. I think that you are correct to talk about bitcoin becoming a store of value and it is also very important that the mining cost has doubled after the halving meaning that miners have 1) less bitcoin to sell and 2) pay more to mine one Bitcoin.

Production is halved and this reduces the sell pressure. This is obvious in the chart the last five months after the halving and if demand is increased then price will rise evenly.

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    • Эмитент USDT компания Tether объявила о планах блокировать адреса, которые используют стейблкоин для обхода американских санкций, ограничивающих экспорт венесуэльской нефти.   После введения санкций в отношении нефтяной отрасли Венесуэлы государственная компания PDVSA начала использовать USDT для расчётов с экспортёрами. По данным агентства Reuters, первоначально для обхода ограничений PDVSA проводила транзакции в криптовалюте Petro, которую власти страны запустили в 2018 году. Однако затем нефтяной гигант перешёл на операции в стейблкоинах, что противоречит требованиям властей США.   “В Tether с уважением относятся к списку OFAC (Управления по контролю за иностранными активами Минфина США) и готовы оперативно принять меры по замораживанию подсанкционных адресов, — заявили представители компании.”   Стремление Tether сотрудничать с властями США активизировалось на фоне усиления контроля за криптоиндустрией. В декабре OFAC наложила штрафы на криптобиржу CoinList в размере $1,2 млн за содействие российским пользователям в обходе санкций.
    • Хотя после запуска протокола RUNES количество транзакций резко возросло, а комиссии достигли рекордов, майнеры все еще могут бороться с более низкими комиссиями и стабильным хешрейтом после сокращения вдвое, говорят аналитики. Согласно недавнему анализу CryptoQuant , несмотря на недавний халвинг, в результате которого вознаграждение за блок упало с 6,25 BTC до 3,125 BTC, майнеры биткойнов по-прежнему получают повышенный ежедневный доход благодаря резкому увеличению комиссий за транзакции.   Хешрейт сети Биткойн | Источник: КриптоКвант Аналитики подчеркнули, что комиссии за транзакции в сети Биткойна выросли до рекордно высокого уровня по отношению к общему доходу майнеров прямо в день халвинга, предполагая, что майнеры «похоже, выполняют операции с той же скоростью, что и до сокращения нарады». CryptoQuant отметили, что, несмотря на обновление сети, общий хешрейт «остался неизменным или немного выше на уровне 617 EH/s».   Аналитики объяснили рост комиссий запуском протокола RUNES , стандарта взаимозаменяемых токенов в сети Биткойна, который позволяет выпускать и передавать взаимозаменяемые токены путем хранения данных в кодах OP RETURN. Событие четвертого халвинга Биткойна, произошедшее 20 апреля, вызвало значительный интерес, особенно в сравнении с золотом с точки зрения дефицита. Аналитики Glassnode отмечают , что последнее сокращение вдвое ознаменовало исторический момент, когда темпы выпуска BTC впервые упали ниже ставок по золоту, что сигнализирует о значительном изменении в пользе этих двух активов. Следующее сокращение биткойнов вдвое ожидается примерно в апреле 2028 года.
    • Изменившая стратегию компания Tesla сохранила свои биткоин-резервы   Несмотря на падение выручки почти на 15% в первом квартале 2024 года, Tesla (NASDAQ:TSLA) не стала распродавать свои биткоин-резервы. Согласно финансовому отчёту, автопроизводитель владеет 9 720 ВТС на сумму примерно $648 млн.   Баланс биткоинов остаётся неизменным со второго квартала 2022 года. Однако ранее компания Илона Маска была известна непостоянством в отношении криптовалюты. В начале 2022 года Tesla распродала 75% своих биткоин-активов (около 30 000 BTC). Этот шаг совпал с периодом рыночной волатильности ведущей монеты.   С тех пор отношение руководства автопроизводителя к биткоину изменилось. Теперь компания делает ставку на будущее криптовалюты, возможно, придерживаясь стратегии ходлинга, удержание цифрового актива на длительное время. Такой подход применяет компания Майкла Сэйлора MicroStrategy, сохраняя и накапливая монету.   Сейчас Tesla — третья по величине публично торгуемая компания, владеющая криптовалютой. Первые два места занимает MicroStrategy и Marathon Digital Holdings.   Интересно, что ранее эксперты Arkham обнаружили 68 биткоин-кошельков Tesla и SpaceX, на которых хранятся 11 509 BTC на $768 млн. Это значительно больше, чем указано в отчёте компании Илона Маска.
    • Бот неплох, но не на слишком волатильных монетах. И когда цена резко падает, долго ждать придется, чтобы восстановиться.
    • Актуальные курсы на 25.04   🇵🇱 ВАРШАВА 🇵🇱   Покупаем Ваш Tether (USDT).   💸Доплатим Вам 0,7 % за $. / 1.1 % за €. 🏦Выдадим наличный $, €, PLN. 🏢Центр, свой офис, личная встреча, без предоплат. ♻️Денежные переводы по всему миру! 🌍 💰Работаем с любыми объёмами.     За деталями - пишите Менеджеру 🧑‍💻👉  @PLsmartgroupp
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