Some Factors That Determine Prices of bitcoin

lionheart78

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Quote from: Sim_card on April 15, 2023, 02:50:58 PM

So many factors can affect the price of bitcoin,nobody has said about FUD,which is very dangerous to the adoption of bitcoin by citizens. The massive adoption of bitcoin will make bitcoin price go bullish,in the sense that due to limited supply of bitcoin. Therefore,making the demand of bitcoin to be high.

Bitcoin is known to be historical in nature based on past event,meaning there must be a bearish market. Economy challenges and some unforseen force can also play a negative part on bitcoin price.

Yeah, market sentiment greatly affects the price of Bitcoin, this includes FUD(Fear, Uncertainty, and Doubt) which is one of the major culprits of the Bitcoin market crash. Manipulation such as Bitcoin hoarding, Bitcoin dump (often called pump and dump), news releases, and hidden propaganda that greatly affect the sentiment and trading of the Bitcoin market. We can also include hype that alters the market sentiment making an artificial bullish mood in the Bitcoin market. The regulations of the government can lead to Bitcoin acceptance or a Bitcoin ban which has a direct effect on Bitcoin adoption and repulsion.

Sim_card

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So many factors can affect the price of bitcoin,nobody has said about FUD,which is very dangerous to the adoption of bitcoin by citizens. The massive adoption of bitcoin will make bitcoin price go bullish,in the sense that due to limited supply of bitcoin. Therefore,making the demand of bitcoin to be high.

Bitcoin is known to be historical in nature based on past event,meaning there must be a bearish market. Economy challenges and some unforseen force can also play a negative part on bitcoin price.

Mate2237

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To some ways those might be real but not facts. We, if not all know some of the reasons why the price of bitcoin is flustrating. As you said the demand is one of the factors that cause the bull market. And if the supply is high then the price of bitcoin will come down again. These are the two major factors that affect the price of bitcoin, but from what I discovered, p2p can also inflate their price base on the general market. As it is said by others, the price of bitcoin is unpredictable and can not be predicted.

majeed

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Quote from: Greggry on April 07, 2023, 10:04:35 PM

There are many reasons why bitcoin and other coins price is where it is. When the price either directly or indirectly influence the marketcap the price either rises or fall like the current situation. These are factors that influence the price; source: Crypto Update
...

Navigating the crypto market can be a bit of a maze, amirite? You got the right idea though, fam. A coin's price is hella influenced by its demand, and even its total supply. Those "shit coins" don't usually hold their value, ya feel me? But, you gotta keep in mind that the market capitalization is also super important, especially with Bitcoin's crazy surge in popularity. And, don't forget about the circulating supply of the coins up for grabs, that's a big player in the game of price fluctuations. If you do your due diligence, you can definitely make some smart investments in this complicated space, ya dig?

Adbitco

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Quote from: _act_ on April 08, 2023, 03:39:00 AM

Quote from: Greggry on April 07, 2023, 10:04:35 PM

There are many reasons why bitcoin and other coins price is where it is. When the price either directly or indirectly influence the marketcap the price either rises or fall like the current situation. These are factors that influence the price; source: Crypto Update

2. Total Supply of the coin
4. Circulating Supply:

Why include supply and circulating supply of bitcoin? What matters is just the circulating supply. Although it is good to let people know how bitcoin has a limited supply.

Quote from: Adbitco on April 08, 2023, 02:29:35 AM

Then lastly, For bitcoin price it doesn't work that way if you think of the demand currently the bitcoin total supply is extremely low yet the price dropped to $18k from it previous of $68k. Now tell me was it the low demands or higher supply that causes it?
No, because if i may get it correctly is a season that remains constant that can not be changed in the cryptocurrency market at large that effectualized the trading circle.
Any of you may correct me if i am wrong, although what you said only works in some cases but not with bitcoin entirely

The higher the demand the higher the price is what the OP is talking which I see it to be very correct. When the price of bitcoin decreased from all-time-high to a lower price, it was because more people were selling than those that were buying and the price of bitcoin fall. But I will say that OP discussion about supply is not that accurate because how the price of bitcoin is increasing but which is more responsible by demand not supply. Although supply is also important as the OP included it in the price calculation and as it is limited and there is circulating supply of bitcoin.

Usually I know is absolutely correct but sometimes we need to check out somethings, in some cases bitcoin only obeys the bearish and bull trends. People have been utilizing that opportunity to buy and hold and practically we knew is the cause of low demand which resulted from holders selling off their bitcoin and those who have been waiting for the price to drop and they used such medium to hold more.
The only thing I was trying to correct was about the supply, we know it has limited supply and for that the price will soar without any resistance but if that happens it doesn't really obey the trading circle so it's a must it will go up and down which likely being driven by news.

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Quote from: CarnagexD on April 11, 2023, 06:40:45 AM

BTC's fundamental is essential but no ordinary people have the time to delve with it. It is only the transaction between sellers and buyers. Price is determined to where do they are willing to buy and sell. It is a matter of liquidity. The market is driven by the emotions of every people engaged with it. So how can the banks shaken the funds of those people? By fear.

Emotions shouldn't be involved and yet it is. The reality is that we should be fixing the market by just figuring out the fact that bitcoin always recovers and goes back up, look at it now its going up and people were questioning if we will fail to go above 30k and start going down a lot. The market responded with a stern No right away in a day.

We should stop doubting the market and stop using our emotions to trade and maybe start focusing a bit more towards how we could make a profit from this situation. Keep on insisting and get bitcoin, that is they only way we could make a profit and should be a lot better to have something like that going on then just hoping it gets better in the long run.

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Quote from: Greggry on April 07, 2023, 10:04:35 PM

There are many reasons why bitcoin and other coins price is where it is. When the price either directly or indirectly influence the marketcap the price either rises or fall like the current situation. These are factors that influence the price; source: Crypto Update

1. Demand for the coin:
Where there is a well tilted balance between the supply of a coin to its demand, the price becomes Bearish. The higher the demand, the bigger the price..

2. Total Supply of the coin:
When the supply of a coin is way higher than how much people want it, the price falls. Shit coins fall into this category.

3. Market Capitalization:
This refers to the worth of a coin or token; the total value of all coins mined. E.g. Bitcoin's Market Cap was 729billion the last time I checked..
The market cap moves with the price of the coin..

4. Circulating Supply:
This refers to the amount/part of coins out of the total supply. These number of coins are available for sale and the rest are locked or stored away in the blockchain.

NOTE: Total supply of coins ÷ the coin Market Cap =Price of the coin.

Do not overcomplicate the market. Yes, BTC's fundamental is essential but no ordinary people have the time to delve with it. It is only the transaction between sellers and buyers. Price is determined to where do they are willing to buy and sell. It is a matter of liquidity. The market is driven by the emotions of every people engaged with it. So how can the banks shaken the funds of those people? By fear.

1. Medium high impact news. Wars, pandemic.
2. Seasonal tendencies. Cycles.
3. COTs.
4. Market Correlation: If dollar is higher, risk assets tend to go lower. If dollar is lower , risk assets tend to go lower. With BTC dominance, if BTC is Higher, other coins are going lower.

Quote from: ?? on ??

Quote from: Greggry on April 07, 2023, 10:04:35 PM

There are many reasons why bitcoin and other coins price is where it is. When the price either directly or indirectly influence the marketcap the price either rises or fall like the current situation. These are factors that influence the price; source: Crypto Update

1. Demand for the coin:
Where there is a well tilted balance between the supply of a coin to its demand, the price becomes Bearish. The higher the demand, the bigger the price..

2. Total Supply of the coin:
When the supply of a coin is way higher than how much people want it, the price falls. Shit coins fall into this category.

3. Market Capitalization:
This refers to the worth of a coin or token; the total value of all coins mined. E.g. Bitcoin's Market Cap was 729billion the last time I checked..
The market cap moves with the price of the coin..

4. Circulating Supply:
This refers to the amount/part of coins out of the total supply. These number of coins are available for sale and the rest are locked or stored away in the blockchain.

NOTE: Total supply of coins ÷ the coin Market Cap =Price of the coin.

I don't know if I should agree with you or not. In my opinion these are the factors that affect crypto mostly and ate listed below
1: News News Is more important thing in cryptocurrency. A single news can just shake it whole market or a single news can make market like a bull. That's why News Is most important thing
2: Big whales Big whales play an important role in cryptocurrency industry because they can easily manipulate market and thus is not good for the crypto industry.

Agreed. "Big whales" are other terms for the big funds of market makers. They almost set the price for any risk assets because of their large and institutional funds. They set liquidity. SO when they get in, the price fluctuates higher and other investors will get in making the market continue to go higher. When they "big whale" takes profit, Price creates the top or end of the rally, where the retail investors left and lose money.

In crypto whatever is hot, creates hot and fast money. just prevent hot losses.

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The price of Bitcoin is determined by a number of factors, including market sentiment, the number of buyers and sellers, and the current supply and demand. It's also important to consider news and governmental regulations, as well as the availability of services and products that use Bitcoin. To ensure a secure purchase and sale of Bitcoin, it is important to use a secure and trusted platform such as AnyKYCaccount, which specializes in providing KYC - verified crypto accounts. With AnyKYCaccount, you can be sure that you are buying and selling Bitcoin safely and securely.

Bitcoin sometimes dip and also make good bull runup in the market. Buying and selling of bitcoin tends to accumulates the speedy volatility of Bitcoin. Bitcoin have countless number of factors that make impact on the project. Bitcoin is massively affected by the high rate of volatility of the market, the stupendous increase in demand and supply of Bitcoin in the market, the seasonal position, either bull or bear season. FOMC news and NPI do affect the price action of Bitcoin. It's necessary we know the key basis of the entire operation of bitcoin.

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Quote from: Ozero on April 10, 2023, 11:56:42 PM

Quote from: Adbitco on April 08, 2023, 02:29:35 AM

Then lastly, For bitcoin price it doesn't work that way if you think of the demand currently the bitcoin total supply is extremely low yet the price dropped to $18k from it previous of $68k. Now tell me was it the low demands or higher supply that causes it?
No, because if i may get it correctly is a season that remains constant that can not be changed in the cryptocurrency market at large that effectualized the trading circle.
Any of you may correct me if i am wrong, although what you said only works in some cases but not with bitcoin entirely

I see that the price of bitcoin today for the first time in a long time exceeded $30,000. Ethereum and some other altcoins are also growing well in price. Is there a visible reason for such a good growth or is it a manifestation of the usual market volatility? Cryptocurrency has been in a bearish period for a year and a half, and this stagnation is already rather tired. I would like to see a continuous price increase.

I think the increase in the price value of Bitcoin which we see today crossing the $30k resistance is a slight result of what we stand to experience after next year's halving. Because 2022 was indeed a long bearish period for the Bitcoin market, of which this year & next we should hope to see the opposite (i.e A long consistent bull market period), because today makes it 11 months now since last the price of Bitcoin was worth $30k per BTC (i.e 16th May 2022).

Quote from: Honnet43 on April 11, 2023, 12:18:02 AM

I never realized that my stash of unused gift cards was actually my own personal circulating supply. Maybe I can finally pay off my student loans with those Target and Starbucks cards.

So please can you stop spamming the forum, because what you just said above totally has nothing to do with the topic of discussion, or neither are you reacting to any comments

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I never realized that my stash of unused gift cards was actually my own personal circulating supply. Maybe I can finally pay off my student loans with those Target and Starbucks cards.

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Quote from: Adbitco on April 08, 2023, 02:29:35 AM

Then lastly, For bitcoin price it doesn't work that way if you think of the demand currently the bitcoin total supply is extremely low yet the price dropped to $18k from it previous of $68k. Now tell me was it the low demands or higher supply that causes it?
No, because if i may get it correctly is a season that remains constant that can not be changed in the cryptocurrency market at large that effectualized the trading circle.
Any of you may correct me if i am wrong, although what you said only works in some cases but not with bitcoin entirely

I see that the price of bitcoin today for the first time in a long time exceeded $30,000. Ethereum and some other altcoins are also growing well in price. Is there a visible reason for such a good growth or is it a manifestation of the usual market volatility? Cryptocurrency has been in a bearish period for a year and a half, and this stagnation is already rather tired. I would like to see a continuous price increase.

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Quote from: SamReomo on April 08, 2023, 07:11:34 AM

Market cap of a coin determines its value. If the market cap doubles, the value also doubles. Circulating supply is also important in doubling the price of a coin. Market cap and circulating supply together determine the price of a coin. Other factors are valuable but these two are most important.

Marketcap does not reflect value of a coin but it reflects current price of that coin.

Current price can be higher, lower or as same as value of the coin. You can not say a value of Dogecoin is at $0.7 when it pumps to that price within a few hours. It is just a temporary price and temporary marketcap for Dogecoin.

Its value is determined by its use cases, usability and how small or big its adoption is, its communities are and more factors.

Price # Value
Marketcap # Value

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Quote from: Greggry on April 07, 2023, 10:04:35 PM

There are many reasons why bitcoin and other coins price is where it is. When the price either directly or indirectly influence the marketcap the price either rises or fall like the current situation. These are factors that influence the price; source: Crypto Update

1. Demand for the coin:
Where there is a well tilted balance between the supply of a coin to its demand, the price becomes Bearish. The higher the demand, the bigger the price..

2. Total Supply of the coin:
When the supply of a coin is way higher than how much people want it, the price falls. Shit coins fall into this category.

3. Market Capitalization:
This refers to the worth of a coin or token; the total value of all coins mined. E.g. Bitcoin's Market Cap was 729billion the last time I checked..
The market cap moves with the price of the coin..

4. Circulating Supply:
This refers to the amount/part of coins out of the total supply. These number of coins are available for sale and the rest are locked or stored away in the blockchain.

NOTE: Total supply of coins ÷ the coin Market Cap =Price of the coin.

Demand and total supply are two distinct factors that influence the value of a cryptocurrency. To illustrate this, let us consider the case of the meme coin Doge. Despite having a low demand and a high total supply compared to other cryptocurrencies, Doge's value was significantly affected by external factors. Specifically, news outlets and social media groups that supported GameStop, as well as a tweet from Elon Musk, propelled the meme coin to a top-ranking position, where it continues to maintain its position to this day.

Market cap of a coin determines its value. If the market cap doubles, the value also doubles. Circulating supply is also important in doubling the price of a coin. Market cap and circulating supply together determine the price of a coin. Other factors are valuable but these two are most important.

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Quote from: Justtoons on April 08, 2023, 04:39:35 AM

Additionally, the price of Bitcoin can be significantly impacted by news and media coverage. Favorable news, like widespread adoption by prominent companies,

All those news still revolves around the demand for Bitcoin. for example, news that El Salvador has made Bitcoin a legal tender, micro-strategy purchase 1 million bitcoin, and other news of demand and purchase make the price to spike too.

348Judah

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In a summary of it all, the demand and supply rate determines the price of bitcoin at a particular period of time, though just as mentioned by OP, we also have other micro factors that contributed in this from the list of his itemized factors, market cap, crypto news among other factors can also be considered, investors and beginners should always have it in mind that bitcoin is volatile and can't be stable in price, no matter how the bear or bull.

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Please share the source link I would love to read more from it's source.

Well, Bitcoin's value is heavily influenced by supply and demand, meaning that an increase in demand for the cryptocurrency leads to a rise in its price, while a decrease in demand results in a drop in price.
Additionally, the price of Bitcoin can be significantly impacted by news and media coverage. Favorable news, like widespread adoption by prominent companies, can increase its value, while negative news, like regulatory restrictions, can cause it to fall. The security of the network also plays a crucial role in determining Bitcoin's worth. Any compromise in the network's security can erode investors' confidence in the cryptocurrency, leading to a decline in its value as investors may be hesitant to risk their capital in an insecure token.

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It is important to note that the price of a coin is calculated by dividing the total supply of coins by the market capitalization of the coin. Don't forget that the supply of cryptocurrency in circulation is also an important factor in determining its price. This refers to the number of coins available for sale, with the remainder locked or stored on the blockchain.

What it means, by Understanding these factors and how they affect the price of cryptocurrencies is very important for any individual, investor, institution and trader who wants to get in and make advanced decisions based on preliminary information on the market and anything else that is deemed important.

Solosanz

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It's really sad to see someone determine prices of Bitcoin because of the maximum supply, market capitalization and circulation supply only. If those reasons are the most important factors to determine prices of a coin, a whale can just create a centralized shitcoin, limited supply, and invest at least $542,616,657,882, that's coin already overtake Bitcoin and you might call it better than Bitcoin.

You forget about the decentralization, the security, the usability, the real use case, etc.

Zaguru12

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Quote from: Adbitco on April 08, 2023, 02:29:35 AM

Then lastly, For bitcoin price it doesn't work that way if you think of the demand currently the bitcoin total supply is extremely low yet the price dropped to $18k from it previous of $68k. Now tell me was it the low demands or higher supply that causes it?
No, because if i may get it correctly is a season that remains constant that can not be changed in the cryptocurrency market at large that effectualized the trading circle.
Any of you may correct me if i am wrong, although what you said only works in some cases but not with bitcoin entirely

Although there’s is the bitcoin cycle but Demand definitely affects its price and the supply isn’t low because it is at 19.3million today and that isn’t far from the total supply of 21 million. Once the halving period is passed and bitcoin surpasses a previous all time high, many of the investors usually sell of their holdings or profits and this in turn results to the downtrend of the price.

Also what affect bitcoin to hit as low as $16k could be associated with the likes of FTX having difficulty and this actually caused a little panic amongst investors that leave off there on exchanges, most started selling them off.

If you also look at what is happening in the first quarter of this year you will see that bitcoin moved up to like 70% from the 16k it ended last year, although This can be associated with the fact that many people are buying for the next halving but the crises faced by banks like silvergate, Silicon Valley and it likes has made people turn towards bitcoin and that upped the price

_act_

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Quote from: Greggry on April 07, 2023, 10:04:35 PM

There are many reasons why bitcoin and other coins price is where it is. When the price either directly or indirectly influence the marketcap the price either rises or fall like the current situation. These are factors that influence the price; source: Crypto Update

2. Total Supply of the coin
4. Circulating Supply:

Why include supply and circulating supply of bitcoin? What matters is just the circulating supply. Although it is good to let people know how bitcoin has a limited supply.

Quote from: Adbitco on April 08, 2023, 02:29:35 AM

Then lastly, For bitcoin price it doesn't work that way if you think of the demand currently the bitcoin total supply is extremely low yet the price dropped to $18k from it previous of $68k. Now tell me was it the low demands or higher supply that causes it?
No, because if i may get it correctly is a season that remains constant that can not be changed in the cryptocurrency market at large that effectualized the trading circle.
Any of you may correct me if i am wrong, although what you said only works in some cases but not with bitcoin entirely

The higher the demand the higher the price is what the OP is talking which I see it to be very correct. When the price of bitcoin decreased from all-time-high to a lower price, it was because more people were selling than those that were buying and the price of bitcoin fall. But I will say that OP discussion about supply is not that accurate because how the price of bitcoin is increasing but which is more responsible by demand not supply. Although supply is also important as the OP included it in the price calculation and as it is limited and there is circulating supply of bitcoin.

hd49728

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Supply and demand principle makes sense but it is not enough. Bitcoin market is finite and it can be easily manipulated with volume shocks. When market has big forced liquidation, price will move up or down a lot. That is a time when Supply and demand principle does not correct.

About circulating supply, you can not know it exactly and you can not calculate and know how many bitcoins were lost forever to subtract the amount from circulating supply. It is a challenging math and can not be solved exactly.

In long term, Supply and Demand principle is important for this market as with only 21M bitcoins in total supply plus its increasing adoption then bigger demand, price must move up. New capital pours into Bitcoin market will naturally lift Bitcoin up.

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Quote from: BitDane on April 08, 2023, 02:50:13 AM

You missed some of the important factors that determine the price of Bitcoin. Aside from the given factors, the following also affect the price of Bitcoin.

The supply of Bitcoin and the market’s demand for it
The cost of producing a bitcoin through the mining process
The number of competing cryptocurrencies
Regulations governing its sale and use
Media and news

This factor is stated in Investopedia which I think gives more weight in affecting the price of Bitcoin.

This is actually summarized the list, but among the list I think the cost in producing Bitcoin using mining method is most useful for Bitcoin to pump. As people compete on getting hands on a few supply Bitcoin in blockchain technology, which it increases the network and have a huge impact to the value of Bitcoin. In demand and supply its still depends on the situation of the market, even a few number of Bitcoin could still low the chance for it to pump due to the volatile situation of Bitcoin. Of course as Bitcoin got acknowledged by the media and news new people would invest their money for it and more competitors to come.

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You missed some of the important factors that determine the price of Bitcoin. Aside from the given factors, the following also affect the price of Bitcoin.

The supply of Bitcoin and the market’s demand for it
The cost of producing a bitcoin through the mining process
The number of competing cryptocurrencies
Regulations governing its sale and use
Media and news

This factor is stated in Investopedia which I think gives more weight in affecting the price of Bitcoin.

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Quote

source: Crypto Update

It would be more appreciable if you share the source link directly here.

Quote

1. Demand for the coin:
Where there is a well tilted balance between the supply of a coin to its demand, the price becomes Bearish. The higher the demand, the bigger the price

Then lastly, For bitcoin price it doesn't work that way if you think of the demand currently the bitcoin total supply is extremely low yet the price dropped to $18k from it previous of $68k. Now tell me was it the low demands or higher supply that causes it?
No, because if i may get it correctly is a season that remains constant that can not be changed in the cryptocurrency market at large that effectualized the trading circle.
Any of you may correct me if i am wrong, although what you said only works in some cases but not with bitcoin entirely

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There are many reasons why bitcoin and other coins price is where it is. When the price either directly or indirectly influence the marketcap the price either rises or fall like the current situation. These are factors that influence the price; source: Crypto Update

1. Demand for the coin:
Where there is a well tilted balance between the supply of a coin to its demand, the price becomes Bearish. The higher the demand, the bigger the price..

2. Total Supply of the coin:
When the supply of a coin is way higher than how much people want it, the price falls. Shit coins fall into this category.

3. Market Capitalization:
This refers to the worth of a coin or token; the total value of all coins mined. E.g. Bitcoin's Market Cap was 729billion the last time I checked..
The market cap moves with the price of the coin..

4. Circulating Supply:
This refers to the amount/part of coins out of the total supply. These number of coins are available for sale and the rest are locked or stored away in the blockchain.

NOTE: Total supply of coins ÷ the coin Market Cap =Price of the coin.

Topic: Some Factors That Determine Prices of bitcoin (Read 312 times)