The reason bitcoin price is not stable.

tbterryboy

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Quote from: GeorgeJohn on September 26, 2020, 08:56:54 AM

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

There is no secret actually behind the fall and rise of the price of bitcoins but it is all based on how market behaves to certain moves and how investors read the market because like recently around March the price dropped which I believe was because of the pandemic and the crisis being created throughout the world that we might see the end of the world and aided by the facts that the share market crashed so people had to sell off their digital assets like bitcoins to make sure they don't loose their money in the share market.

This was just one situation so there happen many tiny incidents which lead to small and large fluctuations of price and some we are able to identify while some we are not and the trader who is able to read the market deeper understands and predicts which way the market will move.

coin-investor

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Quote from: okala on September 29, 2020, 12:30:16 PM

You should not just buy or sell bitcoin because you think its price is moving in a particular direction. Many people that trade that way has lose significant amounts of money! Bitcoin price is not made to be stable because it is a speculative asset.

I agree people should stop hoping and wishing that the price will stabilize, the price depends on the demands and the people selling or dumping their shares, the best thing to do is learn how to trade and learn how to buy low and sell high to make a profit, it's challenging but that's how the market right now play out.

justdimin

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Quote from: fabiorem on September 29, 2020, 06:30:18 AM

Its a speculative asset, used only for profits. Its not accepted as a payment method by merchants, and you cant use it to buy food.
It have been "legitimized" by Wall Street, so now you have contracts to buy and sell bitcoin without having the asset in hand. This increases the speculation over it.

The best way to hold bitcoin is to not come to this forum, and dont engage in any discussion about bitcoin and cryptocurrencies in general.
Also, avoid watching any video in the internet about bitcoin and technical analysis. And avoid the hype about financial products related to it.
In this way you will be able to hold bitcoin for many years.

You may think that it is not accepted as payment by merchants but in reality there are tons of places (specially online) that accepts bitcoin as payment. Obviously brick and mortar places still have a very low rating of bitcoin acceptance which is why I understand many people think that it is not accepted, but in reality there are tons of online places that accepts it. Of course, this is only viable for one part of the equation and not the whole but I wanted to clarify that.

Also when I come here it makes me want to buy bitcoin and not sell, I see people who are going into bitcoin and making profit and I feel like I want to be a part of that as well, most of the time I do not have enough money to get in but when I do I actually end up buying as well.

btc78

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Quote from: GeorgeJohn on September 29, 2020, 09:49:11 AM

Quote from: pinggoki on September 29, 2020, 05:48:00 AM

Quote from: GeorgeJohn on September 26, 2020, 08:56:54 AM

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.

Due to the fact that Bitcoin was decentralized so no individual nor company owns it the value is not being manipulated but rather it was all because of the supply and demand. So apparently, this is one of the answers to your question. Bitcoin's value increases because there's a high demand and it also falling because of high supply. Not only Bitcoin though but the whole crypto market was determined by the demand and supply. That's what makes it volatile.

So it's obvious that if demand is higher than supply in crypto market absolutely it will make the price of other cryptocurrency to reduce or to be stabilized in market, okay monitoring the prices of cryptocurrency as a trader in what measures will you identify when you will make a profit since no one can predict Bitcoin and get it perfectly.

lol that is the nature of demand and supply,if the supply is too much then the price will go low,but if the demand exceed then the price will rice up.
Bitcoin is similar to this because this currency is material for trading ,and miners are almost done mining the whole 21 million supply

Quote from: okala on September 29, 2020, 12:30:16 PM

You should not just buy or sell bitcoin because you think its price is moving in a particular direction. Many people that trade that way has lose significant amounts of money! Bitcoin price is not made to be stable because it is a speculative asset.

let those stupid people be the victim of volatility ,we must discourage those who enters here just fora quick bucks,let them learn their lesson that before investing better make a full research first about the trading material or else you'll lose everything .

smyslov

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Quote from: GeorgeJohn on September 26, 2020, 08:56:54 AM

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.

The theory has been buy low and then sell high so buying Bitcoin when it's at the highest when there 's a possibility to go down is not good, and the reason why Bitcoin is not stable is because it's decentralized and investors has their own motivation and reasoning on when and how they are going to sell their shares, people are into making profit and it's one of the reason why Bitcoin is not stable.

Emitdama

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Quote from: Kong Hey Pakboy on September 30, 2020, 12:56:28 AM

Bitcoin's price is unstable due to its volatility. That is why bitcoin's price is so unpredictable that no one can say when it will go up or down. No one can control bitcoin's price that is determined in its supply and demand. When demand increases, the price increases, and when the demand decreases, the price decreases. So if you try to sell a considerable amount of bitcoins, you will see that it will affect bitcoin's price that it would fall.

Well, it is volatile means it changes so that is not the reason but just a synonym for unstable.

The real reason behind the price change of bitcoins is because like you mentioned in the later part of your post that the demand and supply changes very rapidly and bitcoins being an asset are not bound by any boundaries so as people start to buy bitcoins the price just keep increasing and vice versa for selling it drops.

A lot of whales also use this method to pump and dump bitcoins but now the market is getting more and more saturated which actually helps as now it is way harder to swing the market for a single whale and hence we see the price change is not as rapid as it was a few years ago.

With saturation in the market will always come stability be it any asset, like gold has so much value and is so stable because it is used and valued internationally.

wiss19

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Quote from: shoreno on September 30, 2020, 01:54:47 AM

your a full member on this forum and still didnt knew why btc is not stable ? when we are about to join or got curious on btc for the first time . there is that common word that we see all the time and that word is " volatility " unless you wanted to know deeper . you mentioned price and speaking of it , price is in the list of many ways to know if the btc will fall or rise . theres a chart which includes present and past price , you can scan that and make a prediction . i suggest engage yourself in trading because in trading they mainly tackle those

Being a full member and being experienced on forum does not mean you would have full knowledge about how bitcoins works, I mean there are people who do not visit technical aspects of bitcoins and work with particular sector like services or use bitcoins as a method for gambling currency.

I don't know what you are trying to explain in the later stage of your statement because I can assure you that myself been into trading for years I am yet to understand the market based on charts and if you have a working formula please share with us and we all can make profits man, its easy to criticize someone for not knowing something but even more baffling is to not understand the same thing ourselves.

skarais

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The volatility of the bitcoin price is a very important part for all trader and investor, because if there is no volatility, the trader will lose the potential for profit from trading. Bitcoin is a new asset that is too young to have low volatility, many factors influence the ups and downs of the price and this is the reason why some people can gain and some lose. You don't need to feel confused about how the price of bitcoin is determined in the market, it all depend on the trader and no one can control the price of bitcoin. If people say the whale can do it, believe me, they will only have tremendous influence in the market with financial but temporary strength.

Volatility is the determinant of success and failure in trading. The high volatility of bitcoin is very often used by short-term trader to gain profits, but for long-term investor I think they prefer asset with low volatility. If volatility is the determinant of success, then what must be done to achieve success is to make good use of it.

beerlover

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There is also the fact that governments are not really involved with it is a big deal as well, in other stuff there is one government dealing with it, for example USA government can't do anything about UK stock market, or French government can't do anything about German forex traders, but when it comes to bitcoin every nation is dealing with their own citizens while bitcoin is a big global thing.

Basically you as a person can buy stocks from another nation but it is not this simple, if you are a super rich person you can do it but buying 5 dollars of a stock in another nation is not really that easy whereas it is super easy here in crypto. This is why the global part of bitcoin that allows it to be both everywhere but also nowhere whenever it wants to plays a big role.

Findingnemo

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Quote from: GeorgeJohn on September 26, 2020, 08:56:54 AM

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.

When mood changes the price will change as well, sounds funny but its the real reason why price of bitcoin is moving up and down.But the availability quantity made the bitcoin to be more volatile so if there is a big chunk of bitcoin moved or sold on any exchange then surely it will affect the prices in no time.

LUCKMCFLY

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Quote from: GeorgeJohn on September 26, 2020, 08:56:54 AM

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.

The reason is simple, everything is in supply and demand, in the believers of Bitcoin and technology, and also in the speculative market, investors and market speculators. The volatility is huge because Bitcoin is supported under Blockchain technology and has no support as in the Stock Market, here everything is in motion thanks to the market capitalization of Investors, market speculators.

The only way to be stable is for it to become stablecoin and that is impossible, as there are many people in the world who enter and invest and who have full confidence in what the price of the crypto will be in a few years, which according to PlanB according to your S2F model will be something impressive.

jostorres

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Manipulation is a lot easier here as well, people do not consider that to be a real problem but unfortunately manipulation in crypto world is something rampant and we can't stop it neither, we do not have any way of stopping manipulation, they could do it and nothing will happen to them. Millions of dollars per day used for manipulating people, just in one exchange you could change everything and could buy or sell to make a huge change and then you could use your money to profit from that change at the same time as well.

It is really something that changes bitcoin prices like crazy, hell not only they do it on exchanges but they pay 500-1000 dollars per article on each news website to make it look like it goes one way and they move the other way to make more profit as well.

bitgolden

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Probably the fact that anyone can buy as much as they want and sell as much as they want plays a big role here.

For example, if you want to buy stocks there is a limit, obviously this limit doesn't reflect on the poor people but the rich people have it, you can't just put 100 million dollars into a stock without a worry, but microstrategy just bought over 300 million dollars worth of bitcoin without any worry at all. That is why there is really no worry about price volatility here because that volatility also shows how free we are and that freedom allows us to do whatever we want with bitcoin without caring about what the governments of the world might say.

Obviously there are now some regulations in some nations but there is always a way to go around them as well if you want to.

shoreno

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your a full member on this forum and still didnt knew why btc is not stable ? when we are about to join or got curious on btc for the first time . there is that common word that we see all the time and that word is " volatility " unless you wanted to know deeper . you mentioned price and speaking of it , price is in the list of many ways to know if the btc will fall or rise . theres a chart which includes present and past price , you can scan that and make a prediction . i suggest engage yourself in trading because in trading they mainly tackle those

Kong Hey Pakboy

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Bitcoin's price is unstable due to its volatility. That is why bitcoin's price is so unpredictable that no one can say when it will go up or down. No one can control bitcoin's price that is determined in its supply and demand. When demand increases, the price increases, and when the demand decreases, the price decreases. So if you try to sell a considerable amount of bitcoins, you will see that it will affect bitcoin's price that it would fall.

kotajikikox

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Quote from: okala on September 29, 2020, 12:30:16 PM

You should not just buy or sell bitcoin because you think its price is moving in a particular direction. Many people that trade that way has lose significant amounts of money! Bitcoin price is not made to be stable because it is a speculative asset.

But there are ways to treat bitcoin and part of it is to expect price you desire,Though this will not happen any time in your way yet nothings wrong in expecting amount right?
sometimes we are holding because we are seeking for specific value that will come our way before selling our crypto and this is not far from what OP is telling here.
Buy now and sell later if the value fits you,or keep it for Months or even years just to satisfy our desire and this is what bitcoin is all about.
Lets accept the fact that we are mishandling Bitcoin by holding this because it is a currency but how can we blame the demand?since this is the situation even before we arrived here.

pooya87

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price is volatile (goes up and down) mainly because the market is still pretty small even though the numbers surpassed millions a while ago. and in this small market there are a lot of weak hand newbies who usually have no idea what they are doing so they jump at any random news or irrelevant incident in some place else like another market. their irrational actions (panic sells and panic buys) causes the volatility. then the day traders capitalize on the situation and make it worse.

the reason why it is stable right now is that most of those weak hands sold recently and are now confused whether to buy back or not while being a little greedy and wishing for lower prices. meanwhile the whales are accumulating to get ready for the next breakout. hence the stability.

teosanru

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Quote from: GeorgeJohn on September 26, 2020, 08:56:54 AM

Can someone explain categorically while the price of cryptocurrencies especially bitcoin is not constant, because I begin to wonder the reasons behind the secret of bitcoin falling and raising.

How can someone study bitcoin to the extent to know when bitcoin is about to fall and when is about to raise so that the level of lost can reduce.

Looking at the current price of BTC is it advisable to purchase bitcoin when the price is higher or when is lower as investor.

1. Lack of regulatory market. No matter how much your crib about it but regulated markets are always much better to play in than completely free markets. It's because the retail investors are somehow protected from the foul play by the big guns. This also ensures that huge dumping and pumping is not done to manipulate prices. this is the primary reason of the volatility that we have.
2. Concentration of BTC. It's just a myth in minds of people that BTC is evenly distributed. The big guns still hold most of the asset base and they are really not shy in selling at a good price and buying back later which leads to price volatility. The market isn't that sparse.
3. Bots. There is tons of trading volume on exchanges generated by bots. These are another big reason for creating volatility on the market as their actions are pretty quick as compared to humans. They might buy and sell the same coin 10 times in a minute while a human might not even be able to do it once. Many traders do scalping using such bots.

Distinctin

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Quote from: okala on September 29, 2020, 12:30:16 PM

You should not just buy or sell bitcoin because you think its price is moving in a particular direction. Many people that trade that way has lose significant amounts of money! Bitcoin price is not made to be stable because it is a speculative asset.

Buying bitcoin simply means that you are buying risk also. People always thought that after buying Bitcoin the price will then move high which is very unfortunate to happen nor the chance is always on the possible.

@OP, you don't wonder why that the price isn't stable because that is the mean character of Bitcoin. You can't hold people to sell their Bitcoin only at a specific amount nor you can tell those buyers to do the same. Price is not a problem, in fact, that is the reason also why many people had come into crypto for this amazing trend( up and down).

okala

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You should not just buy or sell bitcoin because you think its price is moving in a particular direction. Many people that trade that way has lose significant amounts of money! Bitcoin price is not made to be stable because it is a speculative asset.

Topic: The reason bitcoin price is not stable. (Read 578 times)