Topic: FACTORS AFFECTING BITCOIN PRICE. (Read 208 times)

What you're talking about is an exchange disaster. This is just a short-term fundamental catalyst. It's not important. Some of the world's largest and well-known exchanges (like Bitfinex in 2016 and BTC-e in 2017) suffered hacks/losses/takedowns but the market didn't care past a short-term selloff. If it happens in a bull market, the price will keep rising anyway.


These have some underlying fundamental effect, sure. But what I find is much more important is determining by chart analysis whether the market is in accumulation or distribution, so I can ride the trend.

Fundamentals provide a baseline to work from. They provide basis for a long term trend. But fundamentals can become very far-removed from price, in both directions. This is why people say "the market can stay irrational longer than you can stay solvent." Technicals are far more important for traders.

Even a small news regarding Bitcoin affects it's price either in a positive way or a negative way.This is because these news affects the mindset of the investors investing in Bitcoin.Their decision to invest in Bitcoin or not is affected by these news.If they invest in Bitcoin on large scale then a rise is seen in the price and if they sell their BTC's on large scale then a drop is noticed in the price.So the price of Bitcoin is directly proportional to it's demand and by demand I mean the number of investors investing in it.If the demand is more then the price is more and vice versa.

one interesting thing about use cases and adoption is that they kind of go hand in hand with each other!
for example when more people adopt bitcoin then there will be more use cases for bitcoin because the merchants seeing more customer will have the incentive to accept bitcoin.
and also more merchants accepting bitcoin will show people there is use case and they adopt bitcoin more.

it is like a circle that comes back on itself.

what about futures on CME and CBOE??? The majority is in short position.
dont forget "wall street" whales are coming, it will put upside down the whole crypto market!

Concerted price manipulation & a reduction in mainstream news as a result of the current slow downwards price movement. To summarise bitcoin isn’t interesting to average joe atm so we have no ne investors.

the current security factor poses a serious threat to bitcoin, especially after many exchanges have been hacked. it will affect the bitcoin price.

1.   This was security of 3rd party sites not the protocol

2.   Perception matters such as confusion on failures in security being associated with the operation.  That is a large part of growth, perception and practical experience

3.   This one is just politics and ultimately Bitcoin should transcend such factors and in this it is a strength not a weakness.  Politics is in potential a negative for every personal freedom, BTC must be a positive to be of use


Heres a similar article I read laying out feasible dynamics, might be of interest:



https://www.bloomberg.com/view/articles/2018-07-11/bitcoin-looks-more-like-gold-than-a-currency?utm_campaign=socialflow-organic&utm_content=crypto&utm_source=twitter&utm_medium=social

At present, it seems that the biggest influencing factor of BTC price should be political reasons. The attitude of different countries towards BTC largely affects the price of BTC.

What you wrote is not affecting btc price much, generally manipulation affects price too much, also you can say for every investing commodity: human psychology .

There are thousands of factors that affecting bitcoin price, it's rather similar to stocks and other commodities, mainly:

• Macroeconomics
• Value perceptions
• Fear and greed

From above points you can derive many factors/news/fud/etc. It's really complicated.

Another thing: though people know and are aware about the existence of cryptocurrencies specially bitcoin, they still wouldn't bother buying it considering that there aren't that much use-cases for the said fad. You have very limited option to spend your cryptos to, and the only viable use-case for bitcoins is by holding it and letting it sit idly for a few months/years which I think most of the general public wouldn't like to do. You could also add news and announcements as one of the many factors affecting bitcoin price. We all know how important positive announcements are price-wise, and most of the time these news are market movers no matter how small or big the news is.

From what I've heard about bitcoin, as well as currency values, such as Dollar / USD, Bitcoin prices are fluctuating or up and down. Importantly, the price of Bitcoin is more fluctuating than the fluctuation of the US Dollar. Thus, if we want to buy Bitcoin, it is important to understand what things can cause the rise and fall of Bitcoin prices. If we want to invest Bitcoin, it is also important to understand these things. By understanding these things, we can buy Bitcoin at a low price. And also, can sell Bitcoin with high price. And the factors that influence the rise and fall of bitcoin prices that I know are.

1. Bitcoin Security Factor
related security factors, in the year 2014 ago, there was a massive robbery in one of the Bitcoin buying and selling place in Asia. The event made the world's public doubt the security of Bitcoin. If the world's public doubts the security of Bitcoin, Bitcoin's demand will decline. The decrease in Bitcoin demand will be followed by the decline in Bitcoin prices.

2. Community Perception Factor
Perceptive factors also affect the price of Bitcoin. If Bitcoin gets a better perception, Bitcoin's demand will increase. Followed by the increasing price of Bitcoin. Conversely, if Bitcoin get a bad perception, Bitcoin prices will go down. These perceptions include how perceptions of the ease of using Bitcoin, the perception of how future Bitcoin prices are and the perception of how much profit Bitcoin invests. For information, several years ago, Bitcoin was so synonymous as a means of exchange for buying illegal goods. Over time, these perceptions begin to disappear.

3. Official Bank Recognition Factor
Some countries do not recognize Bitcoin as a legal means of payment. If the central bank recognizes Bitcoin as a legitimate means of payment, Bitcoin's demand will surely increase. Bitcoin's increased demand is followed by higher Bitcoin prices.

So few things that affect the bitcoin price according to what I know so far, if you have any other reason, what's wrong with explaining it, I'm sorry if there's a mistake, and thank you.