Topic: Volatility and its effect - page 7. (Read 872 times)

And you expect that they're going to keep on coming telling different predictions because that's what they're up to. You're going to see them tell such predictions and will mention that they're an expert in some point.

Although coming to the point that these experts probably know little to nothing and they just joined the bandwagon, thus they're giving predictions that makes them a good investor.

They're all for the clout and they've got no credibility but only the media to cover them.

Bitcoin will likely remain more volatile than most of the fiat currencies, as it has a fixed supply and is lacking any central authority (such a government or a central bank) to keep its price under control.
There's also no guaranteed demand that fiat currencies have (e.g. you have to use them to pay taxes), which bears extra uncertainty on how long an it drop when market panic kicks in.
But I wouldn't worry too much about volatility at this point. For many traders an investors, this is viewed more as a feature than a bug. The risk is higher, but so is the potential profit yield.

Bitcoin's maximum supply is 21 million. Some other cryptocurrencies have their hard cap, examples are Monero (XMR) and Dash with 18.9 million, and XRP and Tron (TRX) with a supply limit of 100 billion. Some other cryptos have unlimited supply limits.

Bitcoin is the most stable cryptocurrency. Other cryptocurrencies are highly volatile because their prices can go very high in a few minutes and nosedive in another few minutes. But we hardly experience such with Bitcoin. Bitcoin is when more stable than some fiat currencies and even my country's currency is more volatile than Bitcoin. I can say that Bitcoin is quasi-volatile

I think volatility of Bitcoin is only weird when a person isn't used to cryptos and is way more used to thinking about volatility regarding fiat currencies. Yeah, Bitcoin goes up and down much more than typical fiat currencies on a daily basis, but significant increases or decreases are actually not that common, IMO. Bitcoin can stay within a certain price range for months, so it's not like the volatility is making it truly a wild card. It's around $30k today, which means it can be a bit closer to $29k or to $31k tomorrow, but it's pretty rare to see a change that goes beyond such differences.
And while for some volatility is perceived as a risk, to me, it shows that Bitcoin is alive, that the price isn't regulated. Moreover, many make profit precisely because of volatility at traders, so they wouldn't be thrilled with more stability either.

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.

Though above factors matter a lot, I am sure we know the fact that it's decentralized currency thus making it vulnerable to the big changes if significant group of people starts to sell it OR buy it. The power to make this change can not come from few groups but vast majority of people together plus the volume of the Bitcoin getting sold or purchased..

I think "no control" is something that matters a lot in this regards.

The volatility effects on the market can be seen with the reactions like FOMO, FUD's, selling under pressure when markets not right and buying in the opposite case.

Since any amount of Bitcoin can get liquidated at any point, there is high chance that Bitcoin can either fall or raise based on those actions.

In my understanding the factors and the volatility are directly dependent, anything can happen.

Something like this is not happening for the first time, bitcoin is known to be a highly volatile cryptocurrency and what we have to consider most is the market supply and demand for bitcoin, the value of bitcoin if we are to consider that one as well isn't stable in recent days and the exchange rate is increasing more in value with BTC/USD, this is another good reason why holding bitcoin is more valuable than any form of currency because you will miss out any exchange rate opportunity than when you're holding fiat currency alone.

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.

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.
Volatility is the evaluation of how much value of a financial asset fluctuate on a particular time.
Averagely, Bitcoin volatility ranges between 1.68%_4.54%, where Wednesday is the most volatile day compare to other days and Saturday which is the least volatile days.
The significance of volatility is that an asset is risky to own on any particular day, Its value could significantly increase or decrease.
There are a number of causes for bitcoin's historically erratic price behaviour. By knowing the elements that affect its market value one can choose if to invest in it, trade it, or keep following its advancements.
Bitcoin's price; just as other commodities, stocks, other products and assets rely upon supply and demand.
As it is an asset which traders and investors have swiftly adopted, its value is heavily influenced by opinion about price changes.
Investors concern are also influenced by media sources, influencers, industry titans with strong opinions, and popular cryptocurrency supporters, which causes price volatility.
Factors that create bitcoin volatility.
1. Demand and Supply
2. Investors' and user sentiment
3. Government regulation
4. Media blitz

• Bitcoin demand and supply
As much as any other aspect, demand and supply determine the pricing of the majority of asset. The quantity of coins in spread and the price at which individuals are prepared to pay have a significant impact on the value of bitcoin. The total quota of coins in the cryptocurrency is set at 21 million by design; when the circulating supply approaches this number, values are projected to increase. Source: www.c[Suspicious link removed]m
• Bitcoin investors reaction
Since the quantity of bitcoin; the most popular cryptocurrency is getting more scarce, demand for it is rising.
• Government policy also influenced bitcoin volatility
• News/Media outlets
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.