Topic: News is a major factor that triggers Bitcoin pump and dump (Read 167 times)

True news can increase the price of Bitcoin, especially when it comes with hype and clickbait headlines that news casters and writers always use to title their news and blogs. And you've given a recent example, Donald Trump's US election win, which took the news far and wide across different blogs, channels, and Bitcoin forums and communities.

Another factor that increases Bitcoin's price is adoption. When more businesses and major companies start using Bitcoin for financial transactions, it increases demand and drives up the price. For example, if a company like Amazon were to legalize the use of Bitcoin to receive payments, buy, and sell on their platform, it would definitely cause a surge in Bitcoin's price and even change the market.

So, these factors, plus big investors buying and investing in Bitcoin, increase the price in the market.

Am not sure if there is any protocol that just prompts the price pf bitcoin to rise naturally without any contributing factors. If the whales stops buying and there is no positive news about bitcoin again, do you think the price would have still be gaining strength continuously?. The only protocol that can make the price to increase will just be as a result of the principles of more adoption and buying and hodling which are not even a natural phenomenon because people buy based on their feelings about the potentiality of bitcoin. So if there were no positive news such as the US elections, Approval of spot bitcoin ETFs, and halving events, do you think more investors would have been inquisitive in buying bitcoins?

Even the bitcoin's cycle of 4 years which brings about the halving events does not mean it is a natural phenomenon for the price of bitcoin to increase when it's exactly 4 year cycle. If there is little or no in-flows from the bigger investors of bitcoin and more adoption within that 4 years cycle, the price of bitcoin is unlikely to appreciate more than the previous price cycle.

However, the price pump of bitcoin is solely dependent on a lot of factors such as in-flows, both from individuals, ETFs, Whales and other institutional investors, and more adoption. So, it's not any protocol of natural coincidence.

Yea, it's very much true that news always moves the market either positive or negatively, no doubt, and to me, it's part of the game, which traders use in making or losing money in the market.

The major movers of the market are the big boys like microstrategy, and co. they determine the movement of the market, either upward or downward trend for a certain period of time, and if you are a trader, you will know exactly what am saying, they are the big boys, they manipulate the market to their favour, anytime their is a bad news about an asset, what they usually does is taking profit from their, and at that point, the price of that asset depreciate to a certain level, after a while they will enter again to maintain the upward momentum.

The only thing news does to the market that exact moment is to either make those big boys take profit from their, to collapse the market or they invest more money from there to make the asset appreciate the more.
So in essence of all am trying to say is that supply and demand is more of a mover of the market than news that just shake the market for a while.

I agree with you, that news is among the factors that trigger the BTC pump and dump in the market because buyers and sellers move by the news or information they got from those that visited the market before they can make a decision either to buy BTC at the moment or sell their BTC they have been hodling over some years. I argued with some Bitcoiners about the US election, that the price of BTC will not going to pump higher once Trump win the election, but the news circulate all over the world that the price of BTC will hit $100k if Trump win the election, truly the price of BTC is heading to $100k, which it will going to hit the price before the year 2024 run out.

Every bull and bear season that happened each season, it will first spread across the buyers and sellers because there are some people waiting to buy BTC once the price drop down while there are some people waiting to sell BTC once the price go up, which is the reason they use to pay attention to the news about the price of BTC.

Definitely news has a role to play in bitcoin growth wether increase or decrease. But however without this news bitcoin will still grow but may not be as fast as it woukd have been. We can see that before Trump won the election bitcoin has increased from below $30k to $65k or $66k thereabouts since the beginning of this year and would have gradually achieved it mission but may not have been this fast. All I want you to know is that news has the potential to increase or decrease the growth of bitcoin within some certain level and maintain its stand again. As you can see after the ETF approval bitcoin experience a sudden surge in price and later dropped and maintain its normal growth. So this Trump hype has also increased bitcoin but will last for some period of time before the hype ends and bitcoin maintains it stand. All I can say this factor has it role to play within those period Which helps bitcoin achieve a little push to achieve it target but doesn't Last longer.

Of course certain news can cause panic or FOMO among investors and potential individuals that will want to pick interest, whenever the news is negative a lot of people try to drag their foot in terms of investment because they believe the news that are circulating is not healthy for their investment, however the key determinants of the market flow are those big investors, so even if there is a negative news out there, hence those investors are still holding strong on their investment and are not ready to shift grounds, the price will always remain stable.

Bitcoin finite supply of 21 million is one of the major reasons why demand will always be greater than supply in the long term, and that means that it's price will always increase in the future. It is unlike fiat that has infinite supply and when excess cash is released into the economy, it will cause depreciation of the currency and the value will reduce. It shows that aside from news, the scarcity of Bitcoin total supply is a major determinant of price increase, it is the same thing that happens after halving, when block rewards are reduced and it will trigger scarcity, which will signal the start of bull run. 

the united state election didn't by itself influence the pump of bitcoin price. it's based on some fact that's associated with trumps victory that made it happen that bitcoin price went up after the united state election. understand that it's possible that if the people involved in the election are neutral concerning their stand on bitcoin that after the election there won't be a Need to relate bitcoin price to the outcome of the united state election.

the major factor here is the speculated purchase of bitcoin by the united state after trump won in the election and it is what affected bitcoin because people associate his victory to a potential big whale joining the bitcoin ecosystem. the direction of demand and supply is the primary thing that affect bitcoin price and even if the person that's in the demand of bitcoin is from the angle of the government or is an ordinary person that runs a firm, as long as the quantity the person is willing to buy increases, it's going to affect bitcoin price. rate of adoption also affects bitcoin price because the more people and nations adopt bitcoin, the more it affects bitcoin price.

the summary is that people normally want to buy bitcoin when there is a positive news about bitcoin which could be news on more investor coming into the system or of a policy that's favorable to the bitcoin community.

It is natural that news always have a negative and a positive side of it. It has been so right from the days of old till this very moment that news could make or hamper a process that is in motion be it business, price or anything. It could also tarnish reputation as well but however, looking at bitcoin, news could also affect the market. But one thing we should know is that when it comes to bitcoin, negative news always have its way but it is just on a temporary basis and does not last for too long.

A positive news always spur a hike in price of bitcoin let us use the US Presidential Election and campaign for an example; President Trump has always been an advocate of bitcoin likewise his team, he has promised the bitcoin community of a good policy formation and implementation during his campaigns, he visited bitcoin functions and events which was a positive omen to say and all these caused a good spike in bitcoin and then the major one that triggered the whole process was the election victory and that pumped the bitcoin price very high to this state and I believe his inauguration would trigger another all time high because it is confirmed upon inauguration that he is the President elect.

Nevertheless, I will agree with CryptopreneurBrainboss that demand and supply also have its effect on bitcoin price. The higher the demand the higher the price and the lesser the supply making it a scarce commodity and all these triggers an increase in price. To an extent every little fraction of bitcoin could make a good amount of money in the nearest future as the case may be.

The price of a commodity, like Bitcoin, is influenced by various factors, including news, liquidity, demand and supply, and investor actions. These factors work together to drive price movements. Even without news, prices will still fluctuate due to other influences.

For instance, the current surge in Bitcoin's price can be attributed to the Trump electoral influence. However, other factors might have contributed to its sustained growth.In the world of cryptocurrency, prices are constantly changing due to a multitude of factors.

I agree with you sir, news of what government do towards assets can cause a rise or drop in them. I could remember very well that immediately President Donald Trump said he will support Bitcoin, he will hold all acquired Bitcoin of the US government and that he will sack the SEC chairperson and that he will support the general acceptance and usage of Bitcoin in the US, the price immediately started and uptrend. I also believe just as you've analyzed here that if someone who is against crypto gets in power like trump, the price will likely dump

News has a major impact on every assets/currency or investments so Bitcoin can never be an exception. With every positive news, the market is going to react positively and with every negative news, the market react in the same way.

But there are other factors that affect the price of Bitcoin and one of the most important one is Bitcoin block halving (I believe we all know about this so not going to go into much details). Make we too know say most of the news impact are always temporary and not permanent.

The Permanent impact on the price of Bitcoin is the rate of demand and supply of the market. Bitcoin supply go always they reduced while the demand go dey increase so that one be say, the projection of Bitcoin price will always upwards.

A dump factor can be the hostile treatment of some important government boards of the world towards Bitcoin but this too na still temporary.

What you need to know is that Microstrategy is a smart man and he knows what he is doing. There is no man out there that literally has free money to waste, they are literally doing everything to make back the money in the future, it might not be today or tomorrow but certainly they will sell but not now. He has massive accumulation of Bitcoin bought at $9k but he has refused to sell instead he raise more money almost $4 billion to buy more, not directly his money, it's from MSTR bonds and selling of some shares.


Crypto or no Crypto, Bitcoin or Bitcoin, every market run has it end and now Bitcoin is on the run and nobody knows exactly when it will cool down but one thing is certain, correction will be due and it's when yiu don't expect it will come, just enjoy the ride and worry less about what news will dump the Bitcoin market.

Right now, only ban of Bitcoin in United state can make Bitcoin make any reverse but that's not certain, the new elected president made some promise with Bitcoin, so even if the market plume here, it will quickly go up again pending when he gets to office and approved the the premises he made unless he change his mind or refuse to follow the things he wanted to do with Bitcoin.

Before I go into details I will want you to start by reading the bitcoin white paper

Perhaps you must have forgotten one thing that bitcoin has a protocol that it works with and whatever happens outside this protocol is just a spake to its original nature. the bitcoin protocol allows bitcoin to increase over time with the 4 years circle with you are full aware of but perhaps we are in this 4th year of bitcoin circle which is it's original pump mechanism, ATHs are always anticipated in this period and perhaps the election and very other big news that contributed to bitcoin price pump in this last quarter of the year is just a mere support to the protocol hence if we where in the bear market and all the big news happened its impact would have been for only a very short period of time.

Additionally, every other actions, events that seems to be the triggers of bitcoin price are just mere (planned) coincidence hence bitcoin nature of price increment has not changed and can't be changed except the community wants the change which is probably not possible.

I know that what determines Bitcoin price is supply and demand, in basic economics concept, if demand is greater than supply, price will increase, also if supply is greater than demand, price will decrease. But then there must be things that triggers the supply and demand, and from my research so far, one of the biggest determinant is news. For instance before the US election, Bitcoin price was hovering between $55k and $67k, but immediately Donald Trump, won the election price skyrocketed. I believe that the rallying was due to Trump's, friendly stance on Bitcoin during his campaigns and it has triggered the bull run to another level. Another instance was when the US SEC approved Bitcoin ETF, the positive news also triggered Bitcoin price and we saw ATH at that time.

I know that if the news of a whale or institutional investors like Microstrategy, where to dump a major Bitcoin holding from their bag, the news will cause a dip. This last example shows that whales can actually manipulate Bitcoin price to their favor but I know that the impact will be on the short term because there will be price correction in no time. Bitcoin has the potentials for price recovery.

Do you think that if there is no major news that can trigger Bitcoin price to either pump massively or dip, that the price will be hovering back and forth without rallying or dip, like we experienced before the US election? What other factors do you think that can trigger Bitcoin price to either pump or dump massively?