A number of factors cause BTC rates to fluctuate so quickly. They include:
1. News events that scare BTC users
2. BTC's perceived value sways
3. Uncertainty over BTC's future value
4. Large currency holder risks
5. High profile losses that cause fear
6. Security breaches that cause volatility
You can read further here:
https://www.investopedia.com/articles/investing/052014/why-bitcoins-value-so-volatile.asp
Topic: How Cryptocurrency rates especially BTC Fluctuate so quickly? (Read 437 times)
September 10, 2020, 02:38:01 PM
I always wonder How Cryptocurrency rates especially BTC Fluctuate so quickly? I mean is there any system on which there rates are decided? If so, what is it?
Bitcoin's decentralized nature does not allow any system to decide a ceiling and floor for it's price.Let's talk about the reasons-:
- First reason for such fluctuations is the varying demand of Bitcoin.For example if we talk about gold, we know exactly where it is used and we can somehow predict that when a hike can be observed in it's price.But it is totally opposite for Bitcoin. It's usage is not clear.Sometimes the demand is high and sometimes it is low but the supply remains the same.So that is why we observe a lot of up's and down's in it's price.
- Exchanges are also responsible for these fluctuations. If we talk about any trusted exchange.The number of users associated with it keeps on increasing.It builds a chain of users selling and buying their BTC's which also affects the price.
- Other reasons can be the manipulations done by whales according to their convenience, news regarding BTC on various platforms etc.
September 10, 2020, 01:09:16 PM
Actually there are several things that make bitcoin fluctuate very quickly, and because of the supply and demand in buying and selling in the market and besides that the Pope is very influential in bitcoin fluctuations and manipulates bitcoin prices according to the targets and strategies he wants.
There are many other reasons for bitcoin fluctuation and all there will be news about what is happening with the movement of bitcoin and other coins in the market.
There are many other reasons for bitcoin fluctuation and all there will be news about what is happening with the movement of bitcoin and other coins in the market.
September 10, 2020, 12:47:39 PM
bitcoin is one of the first coins created it's no wonder to see bitcoin becoming the most popular right now and the price of bitcoin is so high
but my advice if investing in bitcoin must be careful the market is in a state of correction afraid that the bear market will come again and last a long time
but my advice if investing in bitcoin must be careful the market is in a state of correction afraid that the bear market will come again and last a long time
September 10, 2020, 12:41:50 PM
I always wonder How Cryptocurrency rates especially BTC Fluctuate so quickly? I mean is there any system on which there rates are decided? If so, what is it?
Because there are no limits of changes within a day like stock market. There is no circuit breaker for the market to stop panic. Crypto market now is a free one, free of limits, free of circuit breakers. Price can move up or down without any limits.Price in turn changes fastly because of price manipulation and news. People invest in crypto but most of them don't know what is bitcoin, and what are waiting for them in crypto market. Then when bad news come they panicly sell and good news release they buy with joy of FOMO. They should do opposite as the saying goes "Buy the rumors, sell the news".
Since bitcoin is a decentralized currency not such breaks exist, if panic takes over the market then all bets are off which is why the price can go down so rapidly as people panic and sell their coins at whatever price the can get.
September 07, 2020, 05:20:39 PM
What drives the demand up high is the decentralization, coz many people wants to be pseudonymous when transacting online and it happened to be found in bitcoin. Another thing is from speculation, when people speculates it creates demand in some point but it's not always going high. So if you are asking why the price of bitcoin is rapidly going up and down, that's basically because of the mass speculation.
Speculation is mostly done by people who want more profits. Whales are one that creates speculation about the price of bitcoin and other coins. They play the market with their money. Highly volatile prices are a characteristic of cryptocurrencies. So it is necessary to be careful when investing and trading in crypto. Market manipulation and speculation are always carried out by whales to achieve their desired targets. 
September 07, 2020, 02:14:13 AM
As you know, bitcoin is a speculative asset and factors like 21 million bitcoins supply, 4 years of block reward reduction, CME contract GAP, chart template, miner, FUD, and related news About bitcoin, all of these factors combine to make the value of bitcoin unstable. Bitcoin's current market cap is around $ 200 billion and its transaction volume is around $ 35 billion. It is still very low compared to other markets. If in the future more money is poured into Bitcoin, the price change in this market will be more stable.
September 06, 2020, 11:41:37 AM
Especially BTC? you should see some altcoins.
In the last 24h Bitcoin lost only 0.28% but XRP 2.7% and EOS almost 4%. Bitcoin usually is the most stable cryptocurrency
There are many reasons but I'd blame fake volume on exchanges, fake USDt buy orders, low liquidity and bot trading among many other.
In the last 24h Bitcoin lost only 0.28% but XRP 2.7% and EOS almost 4%. Bitcoin usually is the most stable cryptocurrency
There are many reasons but I'd blame fake volume on exchanges, fake USDt buy orders, low liquidity and bot trading among many other.
September 06, 2020, 08:42:24 AM
The market is manipulative, when a huge volume gets accumulated with a user he/she has got the ability to move the market. Most of the time, the whales unite together to make changes to the market according to their need. This manipulation is possible to certain point, because compared to the total volume into circulation what Whales have will be a part.
Next thing is the demand to the supply, here exchanges play a very big role. Each trade and the volume constitute to the market fluctuation happening with time.
Next thing is the demand to the supply, here exchanges play a very big role. Each trade and the volume constitute to the market fluctuation happening with time.
September 06, 2020, 08:28:08 AM
There are many factors why the bitcoin price fluctuates so quickly. First, a big dump from a whale meaning there is a massive selling order and the buying order can't keep up that is why the price of bitcoin will crash easily once it will happen. BTC price is base on demand and supply also.
The holders are what pushing the price upward, meaning those who buy and never sold their bitcoin are the one who increases the demand and once it happen the bitcoin price will continue to increase as the supply was overtaken by demand. Traders have big roles also in bitcoin price as they can also affect the prices of bitcoin but the main character that are causing the bitcoin price to fall or increase easily are the big whales.
The holders are what pushing the price upward, meaning those who buy and never sold their bitcoin are the one who increases the demand and once it happen the bitcoin price will continue to increase as the supply was overtaken by demand. Traders have big roles also in bitcoin price as they can also affect the prices of bitcoin but the main character that are causing the bitcoin price to fall or increase easily are the big whales.
September 06, 2020, 08:10:09 AM
Rates are decided by the traders. At which price traders buy or sell = the current price of bitcoin. The reason behind fluactuations are speculation of the traders. If majority of the traders think BTC will go down, they start selling and so does some others do. As a result, the price decreases a lot and vice versa.
That's right, which makes it an imperfect indicator, because the supply available on exchanges is a fraction of the total supply. In other words, the price of ~17 million coins is decided on trades performed upon a million or two that are available for trade around the world. The system is still fair, because it's assumed that if the exchanges were to run out of available supply, the price would skyrocket so much that people who don't hold their coins on exchanges would move them to take advantage of the event, but in the meantime we'd all experience extreme volatility. What you could see in March of this year was an example of what could happen and how easy it is to deplete bitcoin exchanges.
September 06, 2020, 08:04:55 AM
Like all things that have a finite supply, the value of a bitcoin is derived by the number of people that want to buy them vs the number of people that want to sell them.
If more people want to buy bitcoins than are currently for sale (for example if a surge of people want to start using bitcoins to transfer value across borders, see more on this below) then the price goes up.
If more people want to sell bitcoins than currently want to buy them then the price goes down.
If more people want to buy bitcoins than are currently for sale (for example if a surge of people want to start using bitcoins to transfer value across borders, see more on this below) then the price goes up.
If more people want to sell bitcoins than currently want to buy them then the price goes down.
September 06, 2020, 06:56:08 AM
I'd never see there is a system that controls the market price. we are still in the decentralized market and all the buying and selling price will always depend on us. If I sell my cryptos or even buy it today below the market price it is my choice but we can't simply think that it will be filled easily if the price trend going high.
If the majority are pushing the market high, it makes to follow and the same thing happens if they push it back down. We can say it was manipulation, not really sure but the market behaviors are truly affected when there is a huge buy and sell difference.
If the majority are pushing the market high, it makes to follow and the same thing happens if they push it back down. We can say it was manipulation, not really sure but the market behaviors are truly affected when there is a huge buy and sell difference.
September 06, 2020, 03:23:15 AM
Rates are decided by the traders. At which price traders buy or sell = the current price of bitcoin. The reason behind fluactuations are speculation of the traders. If majority of the traders think BTC will go down, they start selling and so does some others do. As a result, the price decreases a lot and vice versa.
And with that, there is no system governing those fluctuations. As the OP is asking about system about such market trend. Market performance depends on various factors, and how traders react to certain situations will play a great role on how the trading market behaves. The movement is fast in crypto that's why it is called a volatile investment. If you are not ready to face this, better keep yourself in the stablecoin market for now.
September 06, 2020, 03:17:07 AM
Rates are decided by the traders. At which price traders buy or sell = the current price of bitcoin. The reason behind fluactuations are speculation of the traders. If majority of the traders think BTC will go down, they start selling and so does some others do. As a result, the price decreases a lot and vice versa.
September 06, 2020, 02:47:29 AM
I always wonder How Cryptocurrency rates especially BTC Fluctuate so quickly? I mean is there any system on which there rates are decided? If so, what is it?
Because there are no limits of changes within a day like stock market. There is no circuit breaker for the market to stop panic. Crypto market now is a free one, free of limits, free of circuit breakers. Price can move up or down without any limits.Price in turn changes fastly because of price manipulation and news. People invest in crypto but most of them don't know what is bitcoin, and what are waiting for them in crypto market. Then when bad news come they panicly sell and good news release they buy with joy of FOMO. They should do opposite as the saying goes "Buy the rumors, sell the news".
September 06, 2020, 12:23:56 AM
I always wonder How Cryptocurrency rates especially BTC Fluctuate so quickly? I mean is there any system on which there rates are decided? If so, what is it?
The "system" is basically all the buy/sell orders aggregated from the crypto exchange platforms,which are tracked 24/7.The rates are decided by the supply and demand.
If the sell orders are more than the buy orders,the price goes down and vice versa.
And it's not just the crypto market that works like that.The stocks and forex markets work exactly the same way. How difficult is to understand something so simple?
legendary
Activity: 2478
Merit: 4341
eXch.cx - Automatic crypto Swap Exchange.
September 05, 2020, 11:45:32 PM
I always wonder How Cryptocurrency rates especially BTC Fluctuate so quickly? I mean is there any system on which there rates are decided? If so, what is it?
Just think of it as the price each trader is willing to buy or sell the coins on the exchange because that's exactly what it's. Buyer A might want to buy at a certain price but will later change his mind the movement he see a downward trend of the price same in the case of the seller, when the market begin to show positive signs of upward movement, the sellers immediate cancel his order so as to sell higher than the initial amount.
This are done by active traders but mostly bots which is why if you didn't keep your emotional understand control while trading, you can easily get decieved by the movement of the market.
September 05, 2020, 11:36:30 PM
It is pretty much about the maximum capital. Crypto is still new so a whale can change and manipulate the price alone. Fiat is so widely used it cannot be manipulated so easily.
You meant traditional high-cap investments/assets not fiat, right? Because if you really think that fiat cannot be manipulated so easily, the Federal Reserve's Jerome Powell would like to have a word with you.
September 05, 2020, 01:46:24 PM
I always wonder How Cryptocurrency rates especially BTC Fluctuate so quickly? I mean is there any system on which there rates are decided? If so, what is it?
Bitcoin marketprice is decided in supply and demand in the market, if you're familiar in exchanges you could clearly see the buying and selling section, it is not controlled by bots or code, etc. but it depends in the investors that are buying and selling bitcoin in the exchange, When a lot of investors selling their bitcoin in the market it is going to result to a drop in the market price in bitcoin, also when a lot of people buying or investing in the bitcoin market price is going to increase or pump. The demand is going to increase when no one wanted to sell their bitcoin in the exchanger, that just means in the buying section it would be in a higher price because people would want to buy bitcoin it needed to increase their buying price if they wanted to buy, if you set the buying price at a low market price it will be placed last in the buying section. Also in the selling section in the exchange, if you want to sell your bitcoin and set it at a certain price you need to wait for a buyer, other selling is going to sell their bitcoin lower than the price you set decreasing the market price.
Jump to: