Topic: Bitcoin price? Who is making it? - page 5. (Read 7397 times)

i think the FOMO is making the price. it is currently at $631. back on May 26 - just a few days ago - it was $450 ie up 40% . When it goes up at that sort of rate it is because the whales have got the ball rolling and now everyone else feels the need to rush in. the willy bot got the ball rolling back in the mt gox days but it was the FOMO that took it to $1000.

All people had contribution for this price rally up because many people now prefer to hold thats why we can see big rally of bitcoin price also their no doubt we can see upward trend since halvinf is not yet done it can go for more than we expected,maybe chinese people held their btc for more now knowing they had the biggest hashpower in btc industry and they can be a great factor if they will dump their coins surely the price will down also

I think the Chinese are making the bitcoin price. The price rose a lot today and it started in China again.

I would consider Mt Gox's "Willy" as an example for the "large market participants" I mention as one factor in the last post. In this case, its influence on the price was extreme because of MtGox's extreme market domination. The actual situation is much more balanced. It's true that Chinese exchanges have a large market share of the trading volume, but that is mainly because they charge zero fees and traders can earn profits with minimal price swings via trading bots.

But the Willy example shows that bots have another interesting property: They "can get weird". This is not limited to Bitcoin: in fact, the big stock market crash of 1987 was partly caused by trading bots (which were then in its infancy). The issue is that these bots sometimes act in a manner they are not more functional to their owners because of bad programming.

So we could say, as an addition to my post from last week, that: the more trading bots are active in a cryptocurrency market, the more irrationaly the price can behave.

There are more media exposure now about the bitcoin. And most of the exposure are positive about bitcoin.

You are right about that and I think that its gonna rise more and more this year due to the publicity.
We ourselves can also let the bitcoin rise again!

Honestly we are self making the price also, the fact is that its based on buying and selling like any other investing if you ask me.

But we all know the Chinese market volume is fake. So the bitcoin price will not be affected by it any more.

remenber MT Gox's  Willy bot   fake transactions, fake volume. MTgox had over 75% from market at that time; China has over 90% at this time

This is a very interesting topic, unfortunately there are much low-quality posts.

The reason for existing a "unanimous" price across exchanges is in fact the result of arbitrage, but not only.

But why does the price move? Why does there even exist a price for a digital "good" like Bitcoin? That's the interesting question.

There are many influences:
- The prices in the past. People get a "feeling" where the price "should be" when they see the current or past price movements. That's the same thing like when you say, "a coffee must cost 2 dollars". (more precisely, "a dollar is half of a coffee")
- Future expectations. Many people hope that Bitcoin will be worth more, so they think the price could go up and buy when they see a "good opportunity". That drives the price up. Similarly, "bears" can drive the price down. The balance between these two forces is determined by the "sentiment" - it can be positive or negative.
- Large market participants. That's what some are referring as "the cartel". I don't think there is ONE cartel, but there are definiely large players that try to influence the price with their own buys and sells.
- Real world usage. The more participants the Bitcoin community has, the higher the price.
- Speculation and technical analysis. Speculators try to find patterns and react to it, driving the price up or down.
- Newly generated supply from miners. The significance is low (mined coins make up about 1 to 3 % of all sold coins), but it exists.

These are only a few factors, but I think they're the most important.The problem is that it's difficult to predict how they work together. So there is no "safe" way of guessing the "right price" or a "price trend", but you can make estimations mainly based on the "sentiment".

actually there is many reasons why price changes and we can't tell them all because sometimes they are very random, but some small ones are like when steam accepts bitcoins, this makes price larger

and supply and demand of course, if more people wants them, and buys them then price will rise of course and if nobody will buy them then price will fall down, price dump

so what for you all tell to us because a trader already know if large amount of buy volume the price would rise and if large amount of sell volume the price would goes down.

Yeah thats right chief ,and the fact that everyday there are more investors gaining and buying bitcoins ,we can expect more of this will come after the end of halving.

Literally that is the common reason.

To make the price move for an increase, it needs a large amount of buy volume.

Same goes for the price decrease, it needs a large amount of sell volume.

I began to think that bitcoin prices fall or rise depending on the users, if they sell bitcoin cheaply, perhaps its price will go down, and if we sell them at high prices, maybe the price will rise

That is right. Although I do not sell the bitcoin directly, when I use the bitcoin, it is sold by the retailers.

We are all making the price, its a combination from sellers and buyers that makes the market price, its like any market price. The bitcoin is unstable if there will be a big amount sold to another one the price will sure get higher.

simple - maybe, but it sure isnt cheap. volume on chinese exchanges is something that definitely should not be taken seriously, but the price is something else.
the pump in price may be artificial, but it cant stay high for long if there's nothing backing up the trust people have by not selling. If you can sell at that price, it aint fake.

Chinese manipulators will do first some every pump scene in their respective exchanges. Then they will try to give another move as well on other exchanges.

If others will eat the bait and it really shake up the price then that's what you called a succesfull manipulation even for a short period of time. Look at the recent pri

That could be true, the price at the Chinese exchanges are around $590, but the bitstamp and coinbase are just $520.