When you are involved and talk about bitcoin you are affecting its price, obviously one topic on bitcointalk about prices will not change the price that much, but if one person bought or sold because of that topic you now officially affected the price.
Now, this is just an example of one topic having so much messages that someone sold or bought because of it, so it is as simple and small as it gets and nothing big, now think about the news websites on crypto, they cause a lot more people to buy or sell as well, but it is still small, now think of a whale, a billionaire in crypto, and he buys 50 million dollars worth, he affects it even more. There are levels of affecting but any person who deals with the market and causes a buy or a sell is the reason price changes.
Topic: What affects the price of bitcoin and other cryptocurrencies (Read 627 times)
September 22, 2020, 01:00:46 PM
I agree that there is a difference, when a coin has a low demand but a very big community that can be enough to maintain a higher floor for the price than it will be otherwise possible and the reason for that is if the price of the coin reaches a very low level the community will react and convert the potential they have and become active demand, this is why some people may think of both as the same but they are not, a big community can become demand if needed but it is not the demand itself.
It could happen just the reverse as well. If the coin doesn't have a big demand and goes down, community size being super big could mean that they could turn on it and sell a lot more as well, when you have a ton of people instead of few they could react together and sell a lot, when the community size is small you could convince few people to not sell and they could stay, but when there is a huge community you can't convince them all to stay, especially when couple rogue ones start to sell the others will say "nobody listens to owners, I will sell too before I lose mine as well" and create a big ripple effect.Demand and community size different and you should have them both high, one of them high and other low will cause you a lot of trouble.
demand and community are not two distinct things, they are the same exact thing. the demand shapes the community and community consists of people who are buying that coin (aka are the demand).
if a coin has a big community, that means there is a lot more people buying it and when drops happen it is so much harder to see it crash big time. for example bitcoin's biggest sudden crash is about 20% while altcoins can easily get dumped 90%
now we shouldn't confuse community with newbies who don't actually own that much coin and keep hyping the tiny amounts they have or the pump and dump army of shills advertising a shitcoin. that is fake community.
September 22, 2020, 12:29:38 PM
I agree that there is a difference, when a coin has a low demand but a very big community that can be enough to maintain a higher floor for the price than it will be otherwise possible and the reason for that is if the price of the coin reaches a very low level the community will react and convert the potential they have and become active demand, this is why some people may think of both as the same but they are not, a big community can become demand if needed but it is not the demand itself.
It could happen just the reverse as well. If the coin doesn't have a big demand and goes down, community size being super big could mean that they could turn on it and sell a lot more as well, when you have a ton of people instead of few they could react together and sell a lot, when the community size is small you could convince few people to not sell and they could stay, but when there is a huge community you can't convince them all to stay, especially when couple rogue ones start to sell the others will say "nobody listens to owners, I will sell too before I lose mine as well" and create a big ripple effect.Demand and community size different and you should have them both high, one of them high and other low will cause you a lot of trouble.
September 17, 2020, 04:34:37 PM
I believe demand and community size are not the same things at all. Community size is something about how many people follow the coin and how many of them actually participate in the chats of these project, whereas demand is how many people are actually spending money on it.
Sometimes demand is low when community is high because community is filled with people who are either afraid of investing or just do not have enough money, whereas demand means there could be few whales who buy in tens of millions of dollars while not having too much community. Look at bitcoin sv for example, owner is a very very rich liar and dude could spend tens of millions of dollars to make it stay above certain level but it doesn't have proper community behind it at all since people think it is a fake coin.
I agree that there is a difference, when a coin has a low demand but a very big community that can be enough to maintain a higher floor for the price than it will be otherwise possible and the reason for that is if the price of the coin reaches a very low level the community will react and convert the potential they have and become active demand, this is why some people may think of both as the same but they are not, a big community can become demand if needed but it is not the demand itself. Sometimes demand is low when community is high because community is filled with people who are either afraid of investing or just do not have enough money, whereas demand means there could be few whales who buy in tens of millions of dollars while not having too much community. Look at bitcoin sv for example, owner is a very very rich liar and dude could spend tens of millions of dollars to make it stay above certain level but it doesn't have proper community behind it at all since people think it is a fake coin.
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September 17, 2020, 04:01:42 PM
The market speculation dont affect the market price much than the whales accumulation, government issues and scalability cause speculation aspect only works on the newbies and others investors who are yet to have knowledge that crypto market analysis does not guarantee 100% result. However, 99% of all privacy dump in price when the government make statement about ban privacy coins and 55% of all crypto enthusiast follow the whales movement.
September 17, 2020, 03:12:11 PM
I still think that whales do have a lot of saying in the price, I know that is not liked a lot by the community because we hate to learn that whales can change the price but I believe that whales could change the public opinion and that is where I get scared. If they sell let's say 10k bitcoins all at once together, it could suddenly create a situation where everyone ends up selling their crypto, because it went down and they are scared and they panic they start to sell as well.
Aside from that obviously hypes time to time change a lot, there are dates in crypto world, like halving or similar stuff where people get excited and they do make moves according to those dates, which actually ends up changing the market price as well, not common but does happen couple times a year.
Aside from that obviously hypes time to time change a lot, there are dates in crypto world, like halving or similar stuff where people get excited and they do make moves according to those dates, which actually ends up changing the market price as well, not common but does happen couple times a year.
September 16, 2020, 07:55:04 AM
Market speculations influence a lot. Many people become experts when talking about this and even celebs and known personally making their own to manipulate their listeners as well as their readers.
We have an unpredictable market, the price fluctuates without knowing exactly what is the reason behind. What OP listed are other factors that could affect the price but the biggest factor that might trigger a huge market change is how the people understand the market behavior.
We have an unpredictable market, the price fluctuates without knowing exactly what is the reason behind. What OP listed are other factors that could affect the price but the biggest factor that might trigger a huge market change is how the people understand the market behavior.
September 15, 2020, 01:44:29 PM
The biggest one is probably the community decision. Most of the time community reacts to all kinds of moves, and that means whatever the community moves that is the direction price will go. You can even see it on bitcointalk, when price is about to drop everyone starts talking about how "will bitcoin go to $6k again?" and when it starts to go up, they are even crazier and write like "will bitcoin be $100k" and you will see which direction it goes.
It will not go to $6k or $100k, but it will go down or up depending on what people think and what better place to learn what people think than the main forum of all crypto world. It is really important to know what people think, and that affects the price of bitcoin and all other cryptos as well, people who react to crypto movements.
It will not go to $6k or $100k, but it will go down or up depending on what people think and what better place to learn what people think than the main forum of all crypto world. It is really important to know what people think, and that affects the price of bitcoin and all other cryptos as well, people who react to crypto movements.
September 15, 2020, 10:25:36 AM
I believe demand and community size are not the same things at all. Community size is something about how many people follow the coin and how many of them actually participate in the chats of these project, whereas demand is how many people are actually spending money on it.
Sometimes demand is low when community is high because community is filled with people who are either afraid of investing or just do not have enough money, whereas demand means there could be few whales who buy in tens of millions of dollars while not having too much community. Look at bitcoin sv for example, owner is a very very rich liar and dude could spend tens of millions of dollars to make it stay above certain level but it doesn't have proper community behind it at all since people think it is a fake coin.
Sometimes demand is low when community is high because community is filled with people who are either afraid of investing or just do not have enough money, whereas demand means there could be few whales who buy in tens of millions of dollars while not having too much community. Look at bitcoin sv for example, owner is a very very rich liar and dude could spend tens of millions of dollars to make it stay above certain level but it doesn't have proper community behind it at all since people think it is a fake coin.
September 14, 2020, 06:38:59 PM
Market is the thing, which affected the price of bitcoin and other cryptocurrencies. Bitcoin is decentralized cryptocurrency with good past, so the investment into it will vary. And the price of bitcoin, surely reflect on the price of other cryptocurrencies like Eth, Ripple, Litecoin. Because the tokens are mostly use to converted into bitcoin and Ethereum.
September 12, 2020, 06:54:44 PM
Whales play a significant factor in the changes of its price in the market but you must also consider the external factors as well. Even if whales have the majority number of bitcoins in the market, external control which is beyond their reach also play a huge role on the shift of bitcoin's price.
Influencers just like whales also played a significant factor on the volatility of Bitcoin. Most of these influencer either bring hype or bring FUD to Bitcoin market which often times affect the mood swing of the Bitcoin market.
September 12, 2020, 06:37:14 PM
4. Community size: The scale of the group is what significantly impacts the Bitcoin price or every other crypto. A wide group is signalling that there is strong interest for this coin. Many businesses and individuals use it, and that broad adoption encourages more growth.
5. Ecosystem development: Many cryptos have their issues even the head of it all Bitcoin. Presently scalability is the main challenge of bitcoin, This means the network is unable to deal with the rising amount of transfers that users submit. Many cryptos have their issues too and these issues can cause a decrease in the price of them
5. Ecosystem development: Many cryptos have their issues even the head of it all Bitcoin. Presently scalability is the main challenge of bitcoin, This means the network is unable to deal with the rising amount of transfers that users submit. Many cryptos have their issues too and these issues can cause a decrease in the price of them
I think you can remove this two since "Community Size" is something already part of the "demand" part of demand and supply. We can't really separate them since you are just basically telling another definition for demand. For the ecosystem and development I think this just all go into market speculation, even if there is something new with their development we can't really translate this into an automatic price increase for a cryptocurrency. We have seen it before where project devs even if they worked their ass off on a new development it doesn't translate into any price increase for their projects.
September 12, 2020, 05:28:42 PM
Whales play a significant factor in the changes of its price in the market but you must also consider the external factors as well. Even if whales have the majority number of bitcoins in the market, external control which is beyond their reach also play a huge role on the shift of bitcoin's price.
Influencers just like whales also played a significant factor on the volatility of Bitcoin. Most of these influencer either bring hype or bring FUD to Bitcoin market which often times affect the mood swing of the Bitcoin market.
September 12, 2020, 05:27:47 PM
Demand is a very important factor on affecting Bitcoin price I think. When people start to buy Bitcoin, demand will increase and the price will be affected nicely. Recently, there are many people who started to sell their Bitcoin. So, there is not enough demand and the price has been declined sharply.
I don't think that is a sharp decline, to be honest. We just slid back down to $10K which is just $1K down from the past weeks where we are staying. Another thing is that we can't say that there is not enough demand since if that is true, we should be looking at a lower price, not just $10K. It is still strong the fact that we are sitting at this price right now.
September 12, 2020, 05:10:34 PM
To sum this up,
What affects the prices of cryptocurrencies is what affects the people that builds the crypto market. Every people take things differently, one will pull his bitcoin out coz he see a 5% mark down to the price while the other will put more money because of the lower price. One investor will pull his investment out of the coin coz he sees a 20% mar down while the other put some more taking advantage of the lower price. One will withdraw his funds out of a project coz it got involve in a scam while the other will not touch his funds until further news have been reported. I guess what crypto is all about is the people's behavior.
What affects the prices of cryptocurrencies is what affects the people that builds the crypto market. Every people take things differently, one will pull his bitcoin out coz he see a 5% mark down to the price while the other will put more money because of the lower price. One investor will pull his investment out of the coin coz he sees a 20% mar down while the other put some more taking advantage of the lower price. One will withdraw his funds out of a project coz it got involve in a scam while the other will not touch his funds until further news have been reported. I guess what crypto is all about is the people's behavior.
As what the OP mentioned, the btc price is affected by those factors. We can't pinpoint only one as the contributor because it is the product of several factors in the market. Even when there is FUD or FOMO, they are just part of the game but they are not exactly the only contributing factor that affect the btc price. So in short, btc price is dictated by several factors and that we can't consider only one factor at a given time.
In addition to what the author of the thread post, I think it's worth mentioning that the price of bitcoin also depends upon the willingness of the public to purchase it given its current price. Although this may generally fall on 'supply and demand', the price mainly depends upon the willingness of the public to purchase it like gold.
Im pretty sure at this point it is only whales.
So in other words you think that economic situation, shutdown caused by the pandemic, the stock market crash, bitcoin bans in certain countries, exchange hacks, halvings, all that is irrelevant. All that matters is when a whale will decide to make a move.
Whales play a significant factor in the changes of its price in the market but you must also consider the external factors as well. Even if whales have the majority number of bitcoins in the market, external control which is beyond their reach also play a huge role on the shift of bitcoin's price.
September 12, 2020, 04:49:53 PM
Mostly that part of demand and supply plays a huge role in the cryptocurrency price, or should I say that’s like the main thing that controls the market price and then the other things are like factors that triggers it to happen: when there are speculations it influences investors to take different actions in the market which brings us down to demand and supply, the investors are either going to demanding for it or their selling their coins, and the action they are taking compared to the supply will determine the supply.
Moreover, issues with government regulations leads to the same thing, also with the community size and ecosystem development.
The problem of the government and its regulation of financial flows in the country and abroad is, in my opinion, a key factor. If we want to ensure that bitcoin is as familiar a means of payment for labor as a plastic card is now, then we need to first push through reforms in the financial sphere of our States. Moreover, issues with government regulations leads to the same thing, also with the community size and ecosystem development.
September 12, 2020, 03:59:36 PM
Demand is a very important factor on affecting Bitcoin price I think. When people start to buy Bitcoin, demand will increase and the price will be affected nicely. Recently, there are many people who started to sell their Bitcoin. So, there is not enough demand and the price has been declined sharply.
September 12, 2020, 03:41:20 PM
Im pretty sure at this point it is only whales.
So in other words you think that economic situation, shutdown caused by the pandemic, the stock market crash, bitcoin bans in certain countries, exchange hacks, halvings, all that is irrelevant. All that matters is when a whale will decide to make a move.
September 07, 2020, 11:52:41 PM
Im pretty sure at this point it is only whales.
September 07, 2020, 08:11:14 AM
In the real sense the inability of cryptocurrency holders to hold their portfolios has major effect on the general cryptocurrency market. If we the holders can keep our portfolios intact without falling for the rumors around the cryptocurrency world, we will have a boost in it market price. Whenever the market went down in respect to bitcoin price is always seen as some sort of dumping from big holders of such coin or token. Let's learn to hold our portfolios and we'll be happy with the move in terms of cryptocurrency price.
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