Topic: How Cryptocurrency rates especially BTC Fluctuate so quickly? - page 2. (Read 432 times)
September 05, 2020, 01:01:12 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. As crypto grows and is divided more and more among more people it will become harder and harder to manipulate. The more they spread the harder to manipulate. This is why new projects are often a good idea to take part in because you can become a whale with greater ease.
September 05, 2020, 12:15:25 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.
September 05, 2020, 11:56:15 AM
I mean is there any system on which there rates are decided? If so, what is it?
Well, mainly, eversince, the supply of bitcoin/cryptocurrency, and the market demand. Exchanges have a huge factor of it - the price and volume.The demand is coming from different direction but most are being concentrated to the whales.
Now you might wonder why there is a demand for a digital coin like bitcoin, that's for another topic to discuss.
September 05, 2020, 11:30:41 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?
This is economics 101, the price of everything depends on the supply and demand, however while that explains why the price of bitcoin changes and how its price is decided it doesn't explain, at least in an explicit manner, why the price of bitcoin moves so quickly, there are several reasons for that one of the most obvious is that despite the size of this market it is still very small compared to many other markets and as such it is easier to move it compared to them.Another reason is that there is a great concentration of wealth in a few individuals which we call whales and as such they can move the price with their actions, finally the limited supply of bitcoin plays a huge factor because as soon as the demand skyrockets the supply stays the same and that obviously makes the price of bitcoin to go up very rapidly.
September 05, 2020, 11:23:56 AM
Its pretty easy to be whale in crypto, whales could manipulate price as they want. Also, a lot of fomo and fud here, that's affect the price too
How on earth it is pretty easy to become a whale in crypto? I would like to know!
Whales are definitely there but they are not the only reason why bitcoin price fluctuates. It's just one of the many reasons out there! What fluctuation you see, is one of the rawest form of human emotion without any centralized authority to step in.
FUDs usually play a role but it's super temporary unless that FUD comes from any world leader or someone supremely powerful.
And I agree with tulpe123 that FOMO and FUD play a massive role in price formation. Sure, it's demand and supply in theory, but often the demand varies greatly due to some speculations or mildly related to Bitcoin events that trigger certain attitudes (sometimes positive, but usually negative), and that, in turn, leads to a significant temporary change of price.
September 05, 2020, 09:45:31 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?
As in a normal financial market, the price depends on the events (political, economic, social, and technological) taking place in the world. For example, if a war with America begins in Iraq, then we should clearly expect a movement in the dollar in the near future. Or for example, the coronavirus has hit the financial sector very hard.
September 05, 2020, 04:17:13 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?
I am not sure what rates you are pointing out. I assume that you are asking for a price rate that could be our basis in buying or selling.Since Bitcoin price is not controlled, it was you as a buyer or seller to decide what would be your rate. Why whales could affect the price is that because when they dump, the price drops as well or in the opposite way. Then we are saying there is market manipulation in crypto. Have to believe that instances? Maybe we should.
September 05, 2020, 03:39:21 AM
Supply and demand. Price mainly fluctuates due to how volatile it is right now, but a middle point should be achieved in the future since supply is still currently increasing. There are a lot of speculations out there, and mainly due to the idea of Bitcoin being an investment, it resulted in fluctuations in the price, especially during times where speculations and the like spike up, whether it be positive or negative news, as long as it's news about price speculation, it would always affect it one way or another.
Also due to the decentralized system of BTC, it can't really be affected by any centralized government, even if they tried to. Even if BTC has no backing, it is because of such that no one can really touch on how the market moves and would solely rely on supply and demand.
Also due to the decentralized system of BTC, it can't really be affected by any centralized government, even if they tried to. Even if BTC has no backing, it is because of such that no one can really touch on how the market moves and would solely rely on supply and demand.
September 04, 2020, 06:14:25 PM
Its pretty easy to be whale in crypto, whales could manipulate price as they want. Also, a lot of fomo and fud here, that's affect the price too
Sometimes I doubt with whales in crypto, sometimes I am thinking that these whales are just a myth. It's kinda difficult.FUD sometimes is also one of the reason why BTC fluctuate quickly and for sure if you have lot of money you can make BTC price actions fluctuate.
But what I really know, it is based on the buyers and sellers, the bids or asking prices.
Sometimes I doubt with whales in crypto, sometimes I am thinking that these whales are just a myth. It's kinda difficult.
FUD sometimes is also one of the reason why BTC fluctuate quickly and for sure if you have lot of money you can make BTC price actions fluctuate.
But what I really know, it is based on the buyers and sellers, the bids or asking prices.
September 04, 2020, 05:17:59 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?
Supply/Demand, the basic principle, the higher the demand, the price is obviously getting to be positively affected. So there are no written system per se, but supply and demand are affected by a lot of factors, i.e. negative news, hype or FOMO then manipulation.
September 04, 2020, 05:05:31 PM
Its pretty easy to be whale in crypto, whales could manipulate price as they want. Also, a lot of fomo and fud here, that's affect the price too
Sometimes I doubt with whales in crypto, sometimes I am thinking that these whales are just a myth. It's kinda difficult.FUD sometimes is also one of the reason why BTC fluctuate quickly and for sure if you have lot of money you can make BTC price actions fluctuate.
But what I really know, it is based on the buyers and sellers, the bids or asking prices.
September 04, 2020, 04:56:56 PM
Its pretty easy to be whale in crypto, whales could manipulate price as they want. Also, a lot of fomo and fud here, that's affect the price too
Easy to say but becoming one, I don't think that it will ever happen to me based on what you are saying that it's easy. The factors that you have mentioned such as news, it does affect the market.Bitcoin is highly volatile and that's why it fluctuates so much. Just like the answer by most about supply and demand, it all happens at the same time. If more people are selling, you'll notice it as it's dropping quickly and vice versa.
September 04, 2020, 03:57:45 PM
It is true that majority of the investors have never traded before and those are especially who started with BTCitcoin from the start and have accumulated a lot of coins and they might have traded like kiddies in the past but right now there is enough time for any major holder to learn the trade and anyone who invested at a later time has the knowledge about trading.
It's a lovely idea. We all know that's not going to happen. Even people who've been here since double digit bitcoins have freaked out and blown it. Most people simply are not built to be successful traders no matter what they do. That's how it is and how it'll always be.
That's different from holders. I know enough to know that I'm shit at trading and shouldn't go anywhere near it. Some have to lose a lot before figuring that out.
September 04, 2020, 03:39:01 PM
Another factor is that many people in this market won't have any experience of any other type of trading and will never have traded before. We see screechy kiddies whipping themselves up into a whirlwind of hysteria and blowing it here every single day. The proper pros know they're easy pickings so they keep fleecing them over and over again.
It's not like this scene is overflowing with balanced adults.
It is true that majority of the investors have never traded before and those are especially who started with BTCitcoin from the start and have accumulated a lot of coins and they might have traded like kiddies in the past but right now there is enough time for any major holder to learn the trade and anyone who invested at a later time has the knowledge about trading.It's not like this scene is overflowing with balanced adults.
I believe major fund houses has hands in the market and they are capable of creating a major sell off and book their profit and then enter again after a small correction.
September 04, 2020, 01:27:41 PM
Free market--virtually everyone can participate in the trading action so long as they have the money and the guts to do so. Even with exchanges imposing strict KYC rules, platforms that offer decentralized trading action can be utilized in order to participate in this huge market. Also, the supply and demand is ever-changing, with impasses happening for a few moments then the next thing you know the price either crashes or rushes upward. And given that no tight regulation is in place for the trading activity of cryptocurrencies, you can see that once momentum is built up on either side of the board, it keeps on rolling until the market makers says stop.
September 04, 2020, 01:14:45 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?
In terms of value in the market, the main reason is always the demand and supply because these are the primary factor affecting the price movement in the market. I think many people are selling their bitcoins that's why it's value suddenly pulled down. Also another factors that affect the market movement is the implemented trading bots to executes buy and sell order very fast.
September 04, 2020, 01:05:07 PM
A single news probably from a senate hearing can cause the price to dive down to 20%, whenever they hear something is up to happen the fluctuation could happen quicker than you can open your phone to bid. Traders out there are just quick to take profit whenever there is opportunity and they'd do it before you can sell yours. The fewer the supply to more you have to hurry else you will have to buy back for a higher price due to the demands.
Another factor is that many people in this market won't have any experience of any other type of trading and will never have traded before. We see screechy kiddies whipping themselves up into a whirlwind of hysteria and blowing it here every single day. The proper pros know they're easy pickings so they keep fleecing them over and over again.
It's not like this scene is overflowing with balanced adults.
September 04, 2020, 12:59:58 PM
A single news probably from a senate hearing can cause the price to dive down to 20%, whenever they hear something is up to happen the fluctuation could happen quicker than you can open your phone to bid. Traders out there are just quick to take profit whenever there is opportunity and they'd do it before you can sell yours. The fewer the supply to more you have to hurry else you will have to buy back for a higher price due to the demands.
September 04, 2020, 12:29:31 PM
Supply, Demand. And both are much more fast moving than conventional markets. It trades 24/7 worldwide. It is also a very thin market, there may not be many buy or sell orders maintaining that price and it doesn't take much to demolish them. Traditional markets are like supertankers, slow and sluggish and deep. Crypto is like a fly in the wind in comparison. It's far more vulnerable to being blown about by a modest breeze.
September 04, 2020, 12:21:05 PM
Its pretty easy to be whale in crypto, whales could manipulate price as they want. Also, a lot of fomo and fud here, that's affect the price too
How on earth it is pretty easy to become a whale in crypto? I would like to know!
Whales are definitely there but they are not the only reason why bitcoin price fluctuates. It's just one of the many reasons out there! What fluctuation you see, is one of the rawest form of human emotion without any centralized authority to step in.
FUDs usually play a role but it's super temporary unless that FUD comes from any world leader or someone supremely powerful.
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