Topic: How Cryptocurrency rates especially BTC Fluctuate so quickly? - page 3. (Read 432 times)
September 04, 2020, 10:21:22 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
September 04, 2020, 09:47:38 AM
A lot depends on the volume of known exchanges like Coinbase, Binance, Kraken, and others. The cryptocurrency market is relatively new and evolving, with time and more investors coming into the market the volatility will decrease. It all depends on the Marketcap the more it is the less volatile the market will be.
September 04, 2020, 09:26:16 AM
The prices depend on exchanges and the demand for BTC against altcoins for trading at any given day. The price fluctuations are mainly driven by bot traders looking to get the most out of arbitrage trading as well as by swapping Alts to gain more BTC during their upward moves. BTC moves also depend on market sentiments of adoption, regulation or hacks.
There is a huge category of low liquidity cryptocurrencies which are listed on almost no exchanges and as soon as people FOMO, the prices tend to pump up as bag-holders will continue to raise prices depending on incoming volume. Lots of bot trading and whale manipulation goes on in pumping the prices of alts. The only prices that you can safely assume to be linked with demand and market sentiment is for BTC. Rest of them all is either whale manipulation or rumors about "Projects".
There is a huge category of low liquidity cryptocurrencies which are listed on almost no exchanges and as soon as people FOMO, the prices tend to pump up as bag-holders will continue to raise prices depending on incoming volume. Lots of bot trading and whale manipulation goes on in pumping the prices of alts. The only prices that you can safely assume to be linked with demand and market sentiment is for BTC. Rest of them all is either whale manipulation or rumors about "Projects".
September 04, 2020, 09:23:37 AM
I always wonder How Cryptocurrency rates especially BTC Fluctuate so quickly?
Because especially compared to other assets like gold and higher-cap stocks, liquidity is a lot lower with bitcoin. Stocks and gold has existed for so long already that a lot of people and a lot of machines are trading them back and forth a lot of times on the daily and there are far more buy/sell offers on the market that it will take a lot more to move the prices of these assets. As with bitcoin, it's just more than a decade old, and is very very easily affected by news and rumours knowing that a lot of people that are buying and holding bitcoin never traded anything in the past before(hence mostly far more inexperienced with investing in general, hence easily affected by their emotions).I mean is there any system on which there rates are decided? If so, what is it?
Assuming you're referring to prices from sites like Coinmarketcap, the Coinmarketcap price of bitcoin and other cryptos is the average of these coins' prices on exchanges. If you're talking about specific exchanges, then prices of coins are decided with the latest executed buy/sell trade offer. September 04, 2020, 09:22:08 AM
Actually, market price determines by the seller/buyer. When suddenly increase sell pressure then the price would drop suddenly as well. If suddenly increase buy pressure then the price would be increasing as well. But the initial price depends on many things and I think your question isn't about the initial price. So we can say that price influences of bitcoin or other crypto come from the exchange since trading happens on there. There is one more thing, market manipulation. You should learn about it to know better research about price calculation.
September 04, 2020, 09:13:24 AM
I suppose its always a market sentiment that could be influenced by external factors and these are implemented mostly by a myriad of trading bots that executes buy and sell orders and have a ripple effect towards every crypto markets fueling volatility. 
September 04, 2020, 08:55:43 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. September 04, 2020, 08:47:54 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?
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