Topic: Is regulations among the key factors that affect the price of Bitcoin (Read 450 times)

Not directly, but certain countries create regulation and policy related to Bitcoin will have butterfly effect, one of which is how the adoption of Bitcoin by big companies, especially if the company reside and is subjected to the policy or regulation. And Company adoption to Bitcoin will certainly affect the sentiment toward Bitcoin and will affect the Bitcoin price. Not only Big company, Bitcoin 'retail' user will also affected by certain countries regulation if they subjected to the regulation.

That being said, Government regulation is not the sole factor, not even the biggest factor of Bitcoin price. There are other factors like economic condition, mainstream adoption, etc.

Yes, regulations are one of the factors that influence the price of Bitcoin, for example the government of a country allows its people to invest in BTC, then of course this will have the potential to have an impact on the price of BTC. and if in a country the government prohibits its people from investing in btc then it will definitely have the potential to affect the price of btc.

and that's one of the factors that influence the price of BTC that I know, and I'm sure there are many more factors that influence the price of BTC that I personally don't know about.

But the scenario of all governments joining forces to ban bitcoin is almost impossible. As we can also see, countries are competing with each other very fiercely, especially the major powers, so it is unlikely that all countries will ban bitcoin at the same time. But it is also undeniable that regulations greatly affect the price of bitcoin especially if that regulation comes from countries with major economies in the world like the US or China. Indeed, regulation is one of the barriers or can also be a catalyst for the price of bitcoin.

when china banned bitcoin mining and forced a majority of miners to stop mining. the value element of bitcoin dropped causing the speculative element of the retail market to drop

also though people pretend that treating bitcoin as currency was the cause of the 2013 ATH, everyone else knows it was the roll out of asics to replace FPGA/GPU mining. which changed the mining cost value of bitcoin which then caused the market rate to change too. it was also the standard cycle of the 1 year after halving event that also added to the reasons of the 2013 ATH. as noted by the 2017 and 2021 ATH being caused by the year after halving events.

yep many asic farms dont daily audit cost vs coin acquisition. instead they sign up to 12-24month electric contracts and then just mine non stop. at the end of the contract and start of a new contract they then assess the amount of coin accumilated vs cost of the accumilation to then (when setting the next electric supply contract) decide on a selling price for the coin.
this usually happens one year after halving

Yes, it can influence. Because with regulations imposed by a community or a government in a country, usually this will definitely affect the bitcoin market price. Moreover, the regulations are made by big countries, such as the United States and China. Surely that way bitcoin price movements will be affected. Why does this have an effect? that's because all of that relates to what is called supply and demand in the bitcoin market. Because if for example in a country, bitcoin is strictly prohibited from being used as an investment asset for the people, even though before the regulation was in place, many people in that country invested in bitcoin. But with the existence of prohibition regulations in that country, people are forced to stop investing in bitcoin and for example sell all their assets.

Now, it is clear that the price of bitcoin will most likely go down, because many people are selling bitcoin assets in that country (example). Then suppose for positive regulations about bitcoin, such as a country that adopts bitcoin as a payment system, for example el Salvador. With these regulations, it is likely that the price of bitcoin will increase.
So in that way it is certain, that a regulation will indeed affect the bitcoin market price. Because we cannot deny that we all live in a rule. Whether it's government regulations or regulations from other things. And so is bitcoin, in every country, there must be different regulations, even though most of them are almost the same.

Though there were other factors at that time when China banned it and the price dropped, that is one of the reasons why. Also, just imagine that all of the countries right now will ban Bitcoin, and for sure the price will drop because people will be forced to sell their Bitcoin and they can't buy it back because of those regulations. That is why it is a big factor, and right now adoption is increasing, which is why we do hope that the price will increase because of that.

Regulations are biggest fear type in Bitcoin and cryptocurrency market that is young and not yet fully regulated with enough regulations. So more new regulations might come in future, will be enforced by governments so that Bitcoin and cryptocurrency investors are very sensitively affected by regulatory news.

Whales and market manipulators use such news to fud the market, create fear, uncertainty and doubt among investors and traders then sometimes they pull the trigger to force liquidate positions of greed people who over leverage for their positions.

About sentiment of the market, Fear and Greed index is good to use.

• Bitcoin Fear and Greed Index
  
  • https://www.lookintobitcoin.com/charts/bitcoin-fear-and-greed-index/
  • https://alternative.me/crypto/fear-and-greed-index/
  • https://studio.glassnode.com/metrics?a=BTC&m=indicators.FearGreed

There is no doubt that regulation affects the sentiment of the market.  If there is a swing of sentiment we can see the changes in the demands and sell walls on the market.  Regulation can propel or negate Bitcoin adoption and is maximized depending on how the news is hyped creating investors to get interested to add more funds to the Bitcoin market.

So with the stated effect, we can say that government regulations play a huge part in the demand for Bitcoin that can directly affect the Bitcoin price in the market.

Of the many factors that influence bitcoin price volatility – regulation is one of them. It is true that government regulations play a role in the volatility of bitcoin prices in the market - but only temporarily. Bitcoin is completely independent of country regulations - so it would be unwise to say that it will be badly priced in the long term. Because bitcoin are freely traded - of course their volatility is highly dependent on supply and demand.

A friendlier regulation is certainly expected – in fact I really hope that many other countries will follow El Salvador's lead in the future. Adoption is expected to be more so it will gradually make bitcoin stronger and mature.

I remember when China announced its ban on Bitcoin, the price of Bitcoin dropped drastically. Then when Japan announced that

Bitcoin was legal tender, and the price of Bitcoin went up.
Regulations affect the price of Bitcoin, but it's kind of limited because the regulations are made for a particular country, and unlike fiat, Bitcoin is an international currency. The regulations of a particular country might affect the price of Bitcoin but it is limited.

You have spoken well because regulations are the laws that govern us and influence our decisions. If bitcoin was banned in our country, many of us won't have invested in it because we won't want to disobey the laws of our country but because bitcoin isn't banned we're free to invest in it. The decision of the government through regulations affect the decision of institution investors to invest in Bitcoin or not as they too won't want to disobey the laws.

We have so many factors that affect the price of Bitcoin and regulation is one of them, we also have adoption as without adoption Bitcoin won't have value. Regulation isn't a key factor as Bitcoin can't be regulated directly but the exchanges that are centralized can be regulated.

They can put taxation on the trading without even legalizing it because if you sell and get money in your accounts it will be treated as income so they will get tax from you so it will be much beneficial for them to get more money as tax if they legalize it or put regulations in it but their own digital currency would be of no much use in my opinion.

Not so influential even though certain country regulations also have an effect on prices such as regulations from the United States and countries with great influence in the world of international trade.
Usually, too many regulations will make it difficult for trade actors, one of which is in the licensing sector and several restrictions.

In this regard, some countries are quite sensitive to bitcoin so that not a few have tightened the rules and even banned it so that investors and traders find it difficult.

It is likely this is the posture many governments will take against bitcoin and the market in general, but it is impossible that every government does it, at the end governments are opponents and it is impossible for every single government out there to deny themselves the chances of making money with this market.

Just take a look at tax havens, powerful countries all over the world have tried to force tax havens to charge as much taxes as they do in order to leave rich people with no place to go and play by their ridiculous rules, but they refuse as there is simply too much money on the table up for grabs, this market is the same and there will always be countries interested in offering incentives for bitcoin holders to move there.

But it is not easy to legalize Bitcoin in some governments, it will undergo several stages so that the regulations given can be appropriate.
In some developing countries Bitcoin or crypto is only a commodity tool and should not exceed it.

The reason may be that crypto is very volatile and still risky, and they cannot fully control it.
The application of taxes has certainly been applied to several local exchanges which of course must deposit the identity of all exchange users and no one will escape the imposition of income tax from crypto.

Whether or not Bitcoin or crypto is important for the country's economy must see how crypto impacts all sectors of the economy, whether users are more interested in crypto or not. It is only necessary to ensure that people become active crypto users and the economic turnover is fast enough.

The new country start to adopt the bitcoin,because they learned how important is bitcoin to their economy.The new countries legalising the bitcoin to get taxes from from the trading made by their citizen.When the country people start to earn without paying taxes,after research the government of that country start to legalised it.After legalised mostly that country will start their own cryptocurrency to make sure they want additional income from the country own digital currency to the crypto traders.

 The fact that the adoption of bitcoin can influence its price may not yet be so evident, since there are very few countries that have accepted this asset and have allowed it to circulate legally, in addition to the time to analyze and drawing a conclusion is still very minimal, therefore, it is possible for some to think that the regulation of this currency does not have any noticeable impact on the price, but if we start to think about everything we have learned since the creation of bitcoin, we will realize how important it is that this continues to happen around the world, for the simple reason that bitcoin moves positively when there is a considerable flow of users using it, buying it and even storing it, which can cause the rises to come back to historical values, of course there may be other factors that can help this to happen... but i still think that if more people put their eyes on btc and realize its potential, everything will flow more quickly.

In as much as regulations has its own side effects on crypto and also a tool by the government to control the crypto activities, it does not effect the price of bitcoin. Bitcoin is beyond government control as it is decentralize in nature and nobody controls the market. I can say this that the major factors that really can effect the bitcoin price is the demand and supply factor in the sense that the " higher the demand, the higher the price" and another is the supply which when the supply is high the price drops but when limited, the prices soars high but in the case of bitcoin, there are only 21 million in total supply and out of this only 19,466,725 BTC are in circulation according to the cmc statistics and out of this numbers in circulation some are being locked up and some are lost as well. So saying about regulations on bitcoin is a case of one chasing shadows they can not catch.

With respect of banning of bitcoin, fine the government can ban bitcoin but that I think can not affect the bitcoin market in the sense that p2p exists and trading would continue to go on irrespective of government actions against bitcoin. Smart government would rather  tap into the bitcoin economy very fast than being left behind technological innovation trend to build and sustain their economy.

There has never been, and never will be, national uniformity in regulations. The various geopolitical entities that make up our world, each with their own egos and self-serving goals, define it.

Every country, including the US, UK, and Germany, sees Bitcoin through a different set of concerns and interests. The G20 summit? Haha! merely an exhibit. What India is doing is a drop in the ocean. While they argue, governments like Saudi Arabia and Japan are ahead of the curve and have recognized the potential of Bitcoin. They have a broader perspective.

It is quite naïve of you to try and talk about the "balancing" of Bitcoin's influence. Both Bitcoin's greatest asset and its worst weakness is its decentralization. But what's the deal? Bitcoin may rise and fall, but it is here to stay, much like the unstoppable tide of history. And to any nation defying? They'll be buried by the advancement's dust.

Price of bitcoin is volatile and any related or non related news can move it to a bit in any direction. Regulations do make it harder for people to buy and sell bitcoin. It increases the financial risks and tax related concerns for normal people. Even for a bitcoin enthusiast, it could mean an unnecessary hassle just for holding bitcoins.
I have even seen crypto millionaires leaving their country to a crypto friendly jurisdiction just to keep their crypto business afloat. But with rising tightening of laws in favor of tracking and taxing crypto, the world could move towards global approaches against crypto.