Topic: 2 Bitcoin price questions - page 2. (Read 493 times)

Precisely. Check out Reddit and social media posts back in 2018. People were in full on panic-mode hence why bitcoin's price crashed so hard so fast. On the other hand, also check the market sentiment back in 2017 where everyone was pretty much bullish on bitcoin, even people who don't know crap about Bitcoin.

Well I guess talking about bitcoin on its value and price is just the same in the market. What you are trying to say is its value when adopted outside the market like being accepted as payment means, that's what it looks like, on the other hand, the price is is determined by the speculation which is given by the decentralization, basically the law of demand and supply applies. The limited supply is what guarantees the effectivity of bitcoin in the long run.

Yes, that's when the great dump starts and followed by the bear market. As you know, there's one popular crypto personality that has reminded the whole community that it's likely a bear market was about to start. And that guy was Charlie Lee.
His tweet - https://twitter.com/SatoshiLite/status/940353265585160192
He pointed out to his Litecoin but that's a hint that the market was about to suffer.

Many early investors miners of btc sell their bitcoin that time that's the reasons its crash. They are already in profit so why need to wait more longer and because of panic of many newbie and being affraid  of losing more in USD value.

1. The value of cryptocurrencies is given by their market capitalization, including BTC. The price is influenced by the ratio between the purchase demand and the supply. If the purchase demand is high compared to the supply, then the price will increase, but if the supply is higher, then the price will decrease. That's the beauty of BTC. No one can influence the price of Bitcoin except investors, through their actions.
2. The price of a Bitcoin that you see updated on sites like coinmarketcap is calculated as an average between the prices of the most important exchanges.

It was either a panic sell, whales cashing in millions or both. Whales usually have the ability to change the market trend within a click of the mouse.

When lots of people buy, the price goes up like at the end of 2017. In jan 2018, lots of people sold - making the price fall.

But putting these aside, if you take a look at the 2017 charts, you'd see that prices higher than $15-16k were only hit for short periods of time. While you take a look at the chart and say "wow the price used to be $20k in 2017", remember it was only a matter of minutes, hours or maximum a few days. Only few lucky ones were able to sell at the highest price - while other inexperienced traders probably bought.

Let me explain how the price falls/rises:

Take a look at the following order book (order books contain price listings of sellers, sorted by price) from an exchange:


Say you have 10 BTC and decide to sell them instantly on the market, and you meet exactly this order book. What choices do you have?

 - The price is currently $8,686.0843. As you see, the first trader on the buy orders list (the blue list) offers $8,684.6957 per Bitcoin but only wants to buy 1.1612 BTC. Because you have 10 BTC, you cannot sell instantly to this trader. Therefore, to sell 10 BTC instantly, you have to sell at the following prices:
          -> 1.1612 BTC @ $8,684.6957 (completing the first blue buy order)
          -> 1.0137 BTC @ $8,684.6757 (completing the second blue buy order)
          -> 0.8663 BTC @ $8,684.5957 (completing the third blue buy order)
          -> 0.7926 BTC @ $8,681.5958 (completing the fourth blue buy order)
          -> ... and so on, until you get to a total of 10 BTC sold.

 - Because you sold to the first buy offer every time, you had to sell at lower & lower prices - hence, influencing the market negatively. Now imagine you had 10k BTC. If you wanted to create massive panic, you could sell instantly to all the available offers and create an enormous price dump.

If you decide to buy, you'd have to do the same thing: buy from the first trader on the red (sell) orders list. The more you buy, the more expensive you'll have to buy at. With a large enough purchase, you'd influence the price positively - creating a price rise.

In other words, if you decided to sell BTC at a minimum of $8,600.00 and had enough Bitcoins to fulfill all buy orders until you hit that price, you could and you'd drop the price to $8,600.00 for some time. The opposite effect is met when purchasing.

In 2017 bitcoin went from $800 to $20,000... and in 2018 went down to $3500. If the price goes down that means people is selling their BTC, if the price goes up then it means people are spending cash in the cryptomarkets, so, yeah, that could explain the crash, for people who buy at $800 sell them even at $2000 represents more than 100% of the profit.

Oh thank you. Yes I just saw the text below price in google. So, in 2017 there were many people that got rid of their bitcoins? That's why cryptocurrency crashed in 2018.

1. I think value and price is different isn't it? Bitcoin value determine by speculation of investor, limited supply, useful as form of money (currency), low fees, and many other sector. Bitcoin price determine by both demand and supply traded in a market. If there is big demand of bitcoin, then the price will increase or vice versa. It also followed by limited supply of bitcoin ( 21 million only )

2. The bitcoin price displayed on google is provided from Morningstar for Currency and Coinbase for Cryptocurrency

Take a look here, it may help you get a clearer idea https://tradeblock.com/markets/bfnx/xbt-usd/30m/
For example, I remember some (local) exchanges had a Bitcoin price very different from the average showed in most of the others, it is due mainly to people from countries with shitty economy buying bitcoin >>> selling it, it was like +$3k difference?

1. It's called the law of supply and demand. More bitcoin are being bought? Price goes up. More bitcoin are being sold? Price goes down. Remember the news about the price of oil crashing down? Yea, one of the reasons is that most of the world is in a lockdown, hence not much vehicles are being used.

2. In Google's case, it's already indicated below:



In cases of sites like Coinmarketcap, the prices listed are pretty much averages of what bitcoin's price are on various exchanges.

like the price of everything else from a toothbrush to a lambo and gold, stocks,... price of bitcoin is determined in the market by the market participants based on the supply and demand.
this "market" are usually a bunch of centralized websites called exchanges where people meet and trade bitcoin and that determines the price which will then be reported as a number and everyone else including google fetches it and publishes that value on their platform.

1- his value is determinated by his market capitalization. This means that if more poeple buy than sell, price goes up, and if people sell more than buy, it goes down. Basicly this moves the price, then u can see also that if everybothy wants to sell but no one whant to buy at the same price, btc goes down till where people buy it.

2- this number is an aproximation by how much is worth in the diferent places and diferent values that diferent markets gives. But usualy theris not too much difference.

1) Who determines its value? Markets? What kind of markets? Big companies like blockchain.com ?

2) How is it getting embed on websites? If you google "bitcoin" you will see its price. This number must be set by a person, right?