Topic: Determinants of bitcoin price movements? (Read 159 times)
I think Bitcoin prices are determined by demand and supply. As demand for bitcoin increases, prices increase and as demand falls, prices fall. Bitcoin is already circulating in number and new bitcoin is made with predictable and declining rates, which means demand must follow the inflation rate to keep prices stable. Since Bitcoin is still a relatively small market compared to the actual potential it can achieve, it does not require a large amount of money to drive up or down market prices, and therefore bitcoin prices are still very volatile.
That's the thing, though. Everything we know about Bitcoin now is marked only by an almost 10-year history. That's an incredibly small timeframe to work with, limiting analysis (which is why every TA seems to be good for only as long as it's debunked by the next swing). Every insightful article we read is hindsight. From regulations, to Mt Gox trustee selling off now being the main scapegoat... the thing people need to accept is that we can't predict where it'll go.
Even all these AI platforms and machine learning have limited success, if any. Those that dare to do live sampling of their calls are now finding that even the last two months are showing them up.
Even all these AI platforms and machine learning have limited success, if any. Those that dare to do live sampling of their calls are now finding that even the last two months are showing them up.
I also suspect that there are financial institutions to control BTC prices!
They posted false news that caused the market to crash, and then bought a lot of BTC at low prices.
When markets rise, sell.
These are all guesses!
They posted false news that caused the market to crash, and then bought a lot of BTC at low prices.
When markets rise, sell.
These are all guesses!
The determining factor is supply and demand. That is, if many users who make a bitcoin purchase then the price will be rising up. Vice versa, if many are selling bitcoin then the price will decline.
Based on data from blockchain, the current volume of bitcoin is still small. This is what causes bitcoin prices to rise or fall drastically when there is a sale transaction and buy bitcoin with a large volume.
Based on data from blockchain, the current volume of bitcoin is still small. This is what causes bitcoin prices to rise or fall drastically when there is a sale transaction and buy bitcoin with a large volume.
Do you mean a website with a price chart that highlights major events and the +/- impact they have on the market?
The details doesn't really matter. It can be a chart, a part of the chart, wahtever. You can even add some sad music like it made on http://cryptofeels.net/The main idea is to make a website that will show the recent dump and explain it with 1 sentance (maybe with a link).
oh so what I can get from your opinion is that the price movement of bitcoin is not regulated by a particular institution but because of the behavior of the market participants themselves, means the law of supply and demmand apply here?
The supply and demand is always taking its place but every time different factors are influencing on it.IMO if there was no news then it is more likely that someone dumped a big amount of BTC and people started to sell their coins in panic. In most cases someone or some event determine the fast changes in the behaviour of the market.
no particular agent controls the bitcoin price because bitcoin is a decentralized virtual currency so what happens in the crypto market price movement is all purely from the demand level also vice versa from the disposal rate made by bitcoin users. so nobody controls the bitcoin and it's just a game of money with the scale that each bitcoin user has.
It feels like someone finaly have to make a website that will only show a BTC rates and the issues that recently had a strong impact on it because the reason of the current dropdown is not that obvious. Looks like the dip after the Google FUD was over (at least for a moment) and major crypto news websites like Cointelegraph are not alarming us about anything serious.
P.S. The idea about the website is serious. The one who make something like that will get a good amount of traffic and get some good money from ads.
oh so what I can get from your opinion is that the price movement of bitcoin is not regulated by a particular institution but because of the behavior of the market participants themselves, means the law of supply and demmand apply here? P.S. The idea about the website is serious. The one who make something like that will get a good amount of traffic and get some good money from ads.
In my knowledge i will say that bitcoin is deter mined by the demand and supply forces and this is true that the market forces is influencing the currencies and if we do not manage it personally then the prices become very down like if we see that the bitcoin is dropping then at that time the bitcoin holding is good way to control the price fall and recently bitcoin value fall from $12000 to $7000 which has a difference of $5000 so i think it is a great fall in the price of bitcoin in the last two weeks.
Bitcoin is still a new digital asset and it's price is yet to be determined.
The price is very voltalie because the market cap is still small many people can impact the price.
If bitcoin will still exist in the next few years then ai believe the price will be much more stable.
On the other hand, many people are investing in bitcoin because the price is not stable- bitcoin is being considered to a very high risk-high pay investment against regular stocks.
The price is very voltalie because the market cap is still small many people can impact the price.
If bitcoin will still exist in the next few years then ai believe the price will be much more stable.
On the other hand, many people are investing in bitcoin because the price is not stable- bitcoin is being considered to a very high risk-high pay investment against regular stocks.
It feels like someone finaly have to make a website that will only show a BTC rates and the issues that recently had a strong impact on it because the reason of the current dropdown is not that obvious. Looks like the dip after the Google FUD was over (at least for a moment) and major crypto news websites like Cointelegraph are not alarming us about anything serious.
P.S. The idea about the website is serious. The one who make something like that will get a good amount of traffic and get some good money from ads.
P.S. The idea about the website is serious. The one who make something like that will get a good amount of traffic and get some good money from ads.
Do you mean a website with a price chart that highlights major events and the +/- impact they have on the market?
It feels like someone finaly have to make a website that will only show a BTC rates and the issues that recently had a strong impact on it because the reason of the current dropdown is not that obvious. Looks like the dip after the Google FUD was over (at least for a moment) and major crypto news websites like Cointelegraph are not alarming us about anything serious.
P.S. The idea about the website is serious. The one who make something like that will get a good amount of traffic and get some good money from ads.
P.S. The idea about the website is serious. The one who make something like that will get a good amount of traffic and get some good money from ads.
We can see together that the price movement of bitcoin in time is very aggressive, sometimes the price is still low but a few hours later the price can move very much change either up or down, my question is, is there any special agency that determines this bitcoin like a regular currency whose exchange rate is determined by a particular institution? 
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