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Topic: Volatility and its effect - page 5. (Read 984 times)

hero member
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August 15, 2023, 11:29:17 PM
#56
The "crab market" is just part of the game and as you said, it could be an indication of the accumulation phase. I don't think any serious investor would abandon crypto just because of the boredom. As long as there's no reason to believe the next bull run will not happen - I think we're safe.
And of course, if people leaving due to the lack of action was true, we'd see the price tanking rather than holding still.

Bitcoin can't see new ATH everyday. Market has to take correction. If you see price chart of bitcoin then its very much clear that bulls do take over but there time can't be predicted. Having said that current price of bitcoin is not bad at all, its very much stable in 29 to 31k$ bracket. Halving is coming next year and this is the best time to accumulate bitcoin before the bulls take over after halving.
sr. member
Activity: 1610
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August 15, 2023, 10:16:26 PM
#55
I also think people will gradually forget and limit using bitcoin if it becomes stable because most of us enter the market for profit and not looking for privacy. We'll still use it, but it won't be as popular as it is today.
Bitcoin volatility is one of the highlights of Bitcoin. Because of this volatility, many people use it to get income from profits, at least it will be successful in trading. And of course, this will also provide benefits for both short term and long term investors. Imagine if there was no more volatility in Bitcoin, and Bitcoin became a crypto stable coin. This will not be attractive enough with a stable Bitcoin price like that. So it's difficult to get a specific price target when trading or investing in Bitcoin. So, as long as we can take advantage of Bitcoin's volatility, I'm sure that most will still like it and don't expect the price to really stable.

While bitcoin's decentralization gives us a lot of utility and use cases in our lives, there's no denying that we care about returns more than anything when investing in bitcoin. Money is always something we care about more than anything in this world.
To be honest, I also never expected bitcoin to become stable, which would make it less attractive. Bitcoin's volatility is really great for investors, but it makes many people who see bitcoin as a currency feel uncomfortable. It is bitcoin's erratic volatility that is one of the reasons it has failed to become a currency so far.
legendary
Activity: 2716
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August 15, 2023, 06:18:09 PM
#54
-snip-
If comparing bitcoin and altcoins, bitcoin is still the best in every way. But in terms of volatility, bitcoin is gradually more stable than altcoins, and that is why many newbies are not interested in bitcoin, and they rush into altcoins in search of bigger profits. But the way I see it, people who invest in altcoins after a while will also return to bitcoin because investing in altcoins is not as profitable as they think.
Broadly speaking it is so, Bitcoin Votality will gradually stabilize, but seeing how stable Bitcoin is depends on how market demand is.
Bitcoin's volatility will also rise and be more aggressive so that bitcoin market movements become more active.
As will happen in Halving, this will make Bitcoin's volatility increase

When Bitcoin has shown a decline in dominance, and volatility is quite stable it is an opportunity for Altcoin to party.
Loss or profit in altcoins depends on how each person trades and what altcoin they choose, it will greatly affect.

-snip-
The easiest thing that affects Bitcoin (or alts) volatility is news, nothing else. Any impactful news, whether positive or negative will effect direction immediately it's released. It doesn't matter where price was headed before. Bitcoin is more fundamental than technical analysis.
This is included in Fundamental Analysis, the market is affected by some news that appears either a trend for FOMO or FUD that is deliberately raised.
Technical and Fundamental analysis both have continuity, in time it will synchronize.
It also looks at the history of bitcoin travel, usually some FUD that appears is always repeated every year or every increase in Bitcoin that will reach the highest price.
full member
Activity: 1582
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August 15, 2023, 04:25:28 PM
#53
I also think people will gradually forget and limit using bitcoin if it becomes stable because most of us enter the market for profit and not looking for privacy. We'll still use it, but it won't be as popular as it is today.
Bitcoin volatility is one of the highlights of Bitcoin. Because of this volatility, many people use it to get income from profits, at least it will be successful in trading. And of course, this will also provide benefits for both short term and long term investors. Imagine if there was no more volatility in Bitcoin, and Bitcoin became a crypto stable coin. This will not be attractive enough with a stable Bitcoin price like that. So it's difficult to get a specific price target when trading or investing in Bitcoin. So, as long as we can take advantage of Bitcoin's volatility, I'm sure that most will still like it and don't expect the price to really stable.
hero member
Activity: 2884
Merit: 794
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August 15, 2023, 02:53:05 PM
#52
In the foreign currency market, I recently experienced the BTC/USD volatility effect, which prompted me to investigate what makes the pair (bitcoin) so volatile.
You should've been here around 2017–2018 to observe what volatility is. This day, it's almost like Bitcoin sleeps throughout. Those days you would check charts and be dismayed that Bitcoin had done over $5k in a day, either in loss or in gain. I know someone will say the market is ranging ATM that's why Bitcoin seems static. I don't speak for the moment, it's something I've observed over a period of time for a while now even before it got itself in this range.

The easiest thing that affects Bitcoin (or alts) volatility is news, nothing else. Any impactful news, whether positive or negative will effect direction immediately it's released. It doesn't matter where price was headed before. Bitcoin is more fundamental than technical analysis.
Without a doubt the last quarter of 2017 and the first quarter of 2018 allowed us to see a period of extreme volatility, and while bitcoin may present bigger movements in the future due to its higher price there is no doubt the movements were more extreme back in those days, which in a way explains why so many people were unable to keep holding their coins and sold them during the crypto winter that followed and they never returned despite the new bull market that took place after it.
hero member
Activity: 2688
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August 15, 2023, 02:10:40 PM
#51
As we have seen all week long and a bit more than that, the price goes close to 30k and then close to 29k and then close to 30k and the.. well that continues like that non-stop. The volatility is there but the amount is very little and that is what I want to talk about, its not that much all the time. Volatility does happen time to time but it doesn't happen all the time, we just end up with bigger volatility during bear and bull runs. However, when we are not on a bear or bull run, we do not end up with any of that, price gets stuck and keeps on being the same price again and again. This is why there is no need to worry about the situation and feel a lot more comfortable about it.
Generally, there is not this much stability in the market because the market is either in the bear run or the bull run, which means it is either going down or going up, this thing only happens once in a while when the market gets totally stagnant as it has become right now. However, it is obviously nothing to worry about, those who want to buy or those who want to sell both should have some patience and keep holding their assets until the market moves.

The current market is not bad for buyers though because it isn't that high, and as the bull run is expected to occur next year, if the price starts going up from this point, this might be the bottom for the current market until the next cycles come when the market enters the bear run once again.
legendary
Activity: 2716
Merit: 1225
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August 15, 2023, 05:16:56 AM
#50
In the foreign currency market, I recently experienced the BTC/USD volatility effect, which prompted me to investigate what makes the pair (bitcoin) so volatile.
You should've been here around 2017–2018 to observe what volatility is. This day, it's almost like Bitcoin sleeps throughout. Those days you would check charts and be dismayed that Bitcoin had done over $5k in a day, either in loss or in gain. I know someone will say the market is ranging ATM that's why Bitcoin seems static. I don't speak for the moment, it's something I've observed over a period of time for a while now even before it got itself in this range.

The easiest thing that affects Bitcoin (or alts) volatility is news, nothing else. Any impactful news, whether positive or negative will effect direction immediately it's released. It doesn't matter where price was headed before. Bitcoin is more fundamental than technical analysis.
legendary
Activity: 2436
Merit: 1561
August 14, 2023, 03:09:19 PM
#49
I am in this market because i know that crypto markets have high volatility. If crypto markets had low volatility and market intervention, they would be no different from stocks and stock markets.

I don't think high volatility is an inherent feature of the bitcoin market, it is expected for volatility to drop as the market cap increases and as the market matures (clear regulations and less legal uncertainties).
And I'm not sure if it's still appropriate to consider stock markets as stable and predictable. Recent years proved they can be as volatile as Bitcoin, with some of he biggest stocks noting huge drops, i.e. Netfilx going down by 75% from late 2021 to mid 2022, or Tesla dipping by 63% (2nd half of 2022) and 72% from its ATH, but there are plenty of other, lesser known listed stocks with bigger drops.
sr. member
Activity: 1722
Merit: 252
August 14, 2023, 08:12:01 AM
#48
The interesting thing about Bitcoin is a fluctuating price, when the price of Bitcoin is very fluctuating, it becomes a good opportunity to get profit, even when the price is red like now there are still many people who get profit, the most important thing is to always sell with profit and not panic.
hero member
Activity: 1498
Merit: 711
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August 14, 2023, 08:02:21 AM
#47
In a simple understanding, the main reason of the volatility is the relation between Circulating Supply and Market Capitalization. It also depends on the number of holders of a currency. If we compare Bitcoin to other cryptocurrencies, Bitcoin has less volatility. It's simply because the market cap is so big and it's number 1 cryptocurrency base on the market cap. This is one of the reason why Bitcoin is the safest cryptocurrency to invest with. Time will come that Bitcoin will be more less volatile where the establishments really accept Bitcoin as payments.
Actually I will agree with you, but I know quite well that the marketcap is been determined by two things, which I will portray that it's the demand and supply, of course is large and bitcoin serves as the dominance in cryptocurrency due to it has a very good potential and good reputation, even though its been taken as general payment option it will still be volatile because its impossible that generally bitcoin will be adopted and all nations legalized it as payment option, what we are narrating in bitcoin is just an assumption not real about bitcoin values,  bitcoin volatility depends on the gravity of the demands and the supply as well the holder as you pin points earlier.
hero member
Activity: 1554
Merit: 762
August 14, 2023, 03:09:38 AM
#46
Honestly this reminds me exactly of the price action in 2015 and 2019. Basically absolutely no movement day in and day out. Every single break is a head fake. The day traders are the only ones that can make any money in this market.

I guess it’s good. You can call it the accumulation phase and we will eventually breakout. However this is testing a lot of peoples patience and many will simply leave crypto for stocks due to boredom.

I am in this market because i know that crypto markets have high volatility. If crypto markets had low volatility and market intervention, they would be no different from stocks and stock markets. One of the main reasons for volatility is that Bitcoin is decentralized and affects the entire market with its price movements. I have to say that in a market that is closed to intervention and open to manipulation, the biggest impact on prices will be volatility. Anyone who understands the dynamics of the market knows that Bitcoin and most of the major coins have healthy volatility.

If you judge the volatility of the market by shitcoins, you don't understand the market. The impact of negative news and manipulation on volatility is no longer felt as much as it used to be in a bear market and we see a market that is on track. Which i consider the beginning of the bull market in the halving period, the impact of volatility is still very high and that's what attracts people. Periods of high volatility are periods of excitement and increased traffic in the market. As the halving approaches, we will see volatility peaking.
hero member
Activity: 2156
Merit: 575
August 13, 2023, 10:58:58 AM
#45
As we have seen all week long and a bit more than that, the price goes close to 30k and then close to 29k and then close to 30k and the.. well that continues like that non-stop. The volatility is there but the amount is very little and that is what I want to talk about, its not that much all the time. Volatility does happen time to time but it doesn't happen all the time, we just end up with bigger volatility during bear and bull runs. However, when we are not on a bear or bull run, we do not end up with any of that, price gets stuck and keeps on being the same price again and again. This is why there is no need to worry about the situation and feel a lot more comfortable about it.
hero member
Activity: 560
Merit: 511
August 13, 2023, 10:39:07 AM
#44
The volatile nature of bitcoin is good and is the best amongst other cryptocurrency because it is decentralized and gives no room for the government to control it. As long as any project is centralized, there is higher possibility of manipulation in it just like the way fiat currency and shitcoins can be manipulated.

In the news, or media, we see different analysis from different “experts” predicting the future movement of Bitcoin, with that action, holders tend to hold more or even increase their shares.
You shouldn't depend on what this so called expert speculate on bitcoin price,that was why this forum was created to teach people on bitcoin. It is better that you DYOR and learn here as most experts that they claim to be have little knowledge on bitcoin. If you follow bitcoin history and understand its cyclic movement you can make your own speculations but some times some bad news or good news by government can also cause the price to dump or pump.
legendary
Activity: 2436
Merit: 1561
August 13, 2023, 09:59:00 AM
#43
Honestly this reminds me exactly of the price action in 2015 and 2019. Basically absolutely no movement day in and day out. Every single break is a head fake. The day traders are the only ones that can make any money in this market.

I guess it’s good. You can call it the accumulation phase and we will eventually breakout. However this is testing a lot of peoples patience and many will simply leave crypto for stocks due to boredom.

The "crab market" is just part of the game and as you said, it could be an indication of the accumulation phase. I don't think any serious investor would abandon crypto just because of the boredom. As long as there's no reason to believe the next bull run will not happen - I think we're safe.
And of course, if people leaving due to the lack of action was true, we'd see the price tanking rather than holding still.
hero member
Activity: 1960
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August 13, 2023, 12:10:43 AM
#42
-snip-
I always wonder, if bitcoin becomes stable and not so volatile, will people still use it for other use cases or will they find another asset to replace it?
If that does happen, then Bitcoin will be slowly forgotten.
The uniqueness of bitcoin from other digital currencies is due to its high volatility which results in price fluctuations.

Bitcoin is not like stablecoins or like gold, Bitcoin has its own characteristics and that is the attraction.
In addition, Bitcoin is truly decentralized, still using the POW network and not moving like most Altcoins that move to the PoS network, where PoS is semi-centralized.

Bitcoin is truly unique and nothing has surpassed Bitcoin as the most decentralized digital currency today.


I also think people will gradually forget and limit using bitcoin if it becomes stable because most of us enter the market for profit and not looking for privacy. We'll still use it, but it won't be as popular as it is today.

If comparing bitcoin and altcoins, bitcoin is still the best in every way. But in terms of volatility, bitcoin is gradually more stable than altcoins, and that is why many newbies are not interested in bitcoin, and they rush into altcoins in search of bigger profits. But the way I see it, people who invest in altcoins after a while will also return to bitcoin because investing in altcoins is not as profitable as they think.
legendary
Activity: 3808
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August 12, 2023, 11:29:40 PM
#41
Honestly this reminds me exactly of the price action in 2015 and 2019. Basically absolutely no movement day in and day out. Every single break is a head fake. The day traders are the only ones that can make any money in this market.

I guess it’s good. You can call it the accumulation phase and we will eventually breakout. However this is testing a lot of peoples patience and many will simply leave crypto for stocks due to boredom.
legendary
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August 12, 2023, 05:22:00 PM
#40
-snip-
People have been too reliant on the news and easily believe it without any verification if whether is true or false. This is a big factor that affects the volatility of Bitcoin which is why we need to become updated to whatever happens around us. When there is too much FUDs/negativity spread, people become panic and cause a sudden drop in price but if there is positive news, demand is high. It eventually told us that manipulation can easily win the minds of the people and so no way we can see a stable market price but the volatility keeps going.
Indeed - this is one of those things that may not be very profitable for a trader. Those who tend to panic over FUD news are just more likely to find losses than gains - but if they understand the trading strategy well then cut losses should always help.

Volatility is caused by supply and demand [one of them], but there are many other points that can cause volatility to exist. Speculation - the world's financial situation - politics - market sentiment and others can also influence prices, but traders must be wise enough in adjusting their trading strategy so they can minimize losses instead of panicking.
hero member
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August 12, 2023, 04:57:07 PM
#39
As per my understanding, Volatility goes mental when there is a Bitcoin news spreading around like a forest fire, that time is the best time to take a trade as more the volatility, better the returns. In Bitcoin, it can happen for some reasons however the main/primary reason is the rumors or the news related to it. Other cryptocurrencies do affect the price of Bitcoin like ETH, BNB etc. All of those are co-related to each other.

Yes exactly news have a greater role in the volatility so successful will be those who take benefit from volatility and not get feared with decreasing price. Both bullish and bearish season are to take the advantage because both have its own role in crypto world.

When due to some news bitcoin fluctuates then at the same time other crypto coins also follows the same trend which suggests that all crypto coins have relation with that of bitcoin therefore bitcoin is getting trust of everyone.

News are not true all the time but effects the industry of cryptocurrency all the time, bad news moves the price negatively while good news moves it positively.
People have been too reliant on the news and easily believe it without any verification if whether is true or false. This is a big factor that affects the volatility of Bitcoin which is why we need to become updated to whatever happens around us. When there is too much FUDs/negativity spread, people become panic and cause a sudden drop in price but if there is positive news, demand is high. It eventually told us that manipulation can easily win the minds of the people and so no way we can see a stable market price but the volatility keeps going.
sr. member
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August 12, 2023, 03:59:15 PM
#38
As per my understanding, Volatility goes mental when there is a Bitcoin news spreading around like a forest fire, that time is the best time to take a trade as more the volatility, better the returns. In Bitcoin, it can happen for some reasons however the main/primary reason is the rumors or the news related to it. Other cryptocurrencies do affect the price of Bitcoin like ETH, BNB etc. All of those are co-related to each other.

Yes exactly news have a greater role in the volatility so successful will be those who take benefit from volatility and not get feared with decreasing price. Both bullish and bearish season are to take the advantage because both have its own role in crypto world.

When due to some news bitcoin fluctuates then at the same time other crypto coins also follows the same trend which suggests that all crypto coins have relation with that of bitcoin therefore bitcoin is getting trust of everyone.

News are not true all the time but effects the industry of cryptocurrency all the time, bad news moves the price negatively while good news moves it positively.
Wayback into those previous years on which fundamentals or traditional economic situations or statuses wont really be that affecting crypto space or simply its really that independent and doesnt really make out some

significant effects into its price but now we are moving in an era or years on which it is really that becoming more significant because whenever there are economic kind of news or happenings which this market is really that having that particular movement whether it would really be negative or positive on which we can really be able to tell that it is really now on making some effects on the time these news or fundamentals would come out.This is why it would really be that so hard on trying out to neglect or dont pay attention when it comes to fundamentals.

This is why on the time that you do set your foot into this market then it would really be just that right that you should be having that in preparation in between fundamentals and technical
which you could really be eventually be able to have both things for you to be able to handle out yourself on this unpredictable market.
hero member
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August 12, 2023, 02:09:15 PM
#37
As per my understanding, Volatility goes mental when there is a Bitcoin news spreading around like a forest fire, that time is the best time to take a trade as more the volatility, better the returns. In Bitcoin, it can happen for some reasons however the main/primary reason is the rumors or the news related to it. Other cryptocurrencies do affect the price of Bitcoin like ETH, BNB etc. All of those are co-related to each other.

Yes exactly news have a greater role in the volatility so successful will be those who take benefit from volatility and not get feared with decreasing price. Both bullish and bearish season are to take the advantage because both have its own role in crypto world.

When due to some news bitcoin fluctuates then at the same time other crypto coins also follows the same trend which suggests that all crypto coins have relation with that of bitcoin therefore bitcoin is getting trust of everyone.

News are not true all the time but effects the industry of cryptocurrency all the time, bad news moves the price negatively while good news moves it positively.
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