What affects the price of bitcoin and other cryptocurrencies - page 2.

carter34

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Quote

1. Supply and demand: The higher the demand the higher the price. If theres an high demand for bitcoin and other cryptocurrencies you will definitely see and increase in them. We all know that the total supply of bitcoin is just 21,000,000. This makes bitcoin very scarce and it will definitely see an increase in price following the rule of the lower the supply the higher the price

I look at this as major reason price can go high or low. A big demand will get panic in the market and that will cause a shake in decision of what to do. Demand and supply is important to where price will shift to.

junnar1968

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Based on my research. Bitcoin’s price isn’t set by anyone in particular. It’s set by the market. this makes pricing the currency more complex because prices will vary by exchange. As an example, you could look up the price of Bitcoin on the internet, and you might find two different prices.

SomeJasonGuy

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According to me, it simply boils down to demand and supply. Macro-economic factors are another big price influencer. Government policies also play a huge role. In India, the price began to tank compared to the rest of the world when bitcoin exchanges were "banned" in 2018.

lepbagong

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Quote from: noorammak on September 05, 2020, 10:34:46 PM

There is no institutional body behind bitcoin, so the value of bitcoin is speculative and community-based. So it is very volatile under any news. The crypto market is very special, most altcoins have a company or organization behind them, but they are all subject to the fluctuations in the value of bitcoin.

bitcoin is very unique and full of mystery but many admire and seek and make investment that is very attractive, bitcoin greatly affects all movements of altcoins in circulation and this very dependence indicates that bitcoin deserves to be taken into consideration by many people and more attention than others because bitcoin is a profitable investment.

noorammak

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There is no institutional body behind bitcoin, so the value of bitcoin is speculative and community-based. So it is very volatile under any news. The crypto market is very special, most altcoins have a company or organization behind them, but they are all subject to the fluctuations in the value of bitcoin.

Inkdatar

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We have read some in detailed like this before. A lot of factors contributes as what affects the price of bitcoin and other cryptocurrencies. The demand and supply is the common facts once the demand increase the price does. Also, you have to note that bitcoin is an unpredictable asset where price may up and down. Once there’s Fud it creates panic that results in the market price down.

hassancisse

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Quote from: k@suy on September 05, 2020, 05:51:43 AM

Quote from: teosanru on September 05, 2020, 02:50:37 AM

Quote from: hassancisse on September 03, 2020, 04:20:41 PM

The prices of cryptocurrencies have been going up and down since it was created and there are so many factors that can make the price fluctuate that way and i will be identifying such factors below:

1. Supply and demand: The higher the demand the higher the price. If theres an high demand for bitcoin and other cryptocurrencies you will definitely see and increase in them. We all know that the total supply of bitcoin is just 21,000,000. This makes bitcoin very scarce and it will definitely see an increase in price following the rule of the lower the supply the higher the price

2. Market speculation: Speculation provides the market with liquidity and the aim of this speculators is to make profit. So many people see cryptocurrency as a speculative tool because its easy to create fear in people about a coin and so many people will FOMO in.

3. Regulatory and Government issues: The government of every country are always finding a way to regulate all cryptocurrencies which is not possible. The fact that they dont like the decentralized nature of it. Cryptocurrency is definitely not accepted in every country in countries where it is accepted and probably the decide to regulate and ban later. This can affect the price of cryptocurrencies badly.

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

I think this is a wrong way to interpret. The reason for market movement has always been demand and supply and nothing else. All these factors that you have mentioned except demand supply are nothing but just factors that affect the demand and supply in some way. So Economically speaking the equilibrium ends up at the point where demand and supply gets exhausted.
Speaking of it financially it's really pretty hard to get an intrinsic value of bitcoin so finding a rough value using finance is almost impossible. Finance generally counts the PV of future cash flows for intrinsic values.

I think the major reason behind the volatily of crypto currencies are the demand of the users. For example of this month has the lowest demand of the users then the next will be affected. The higher the demand the higher that the crypto currency's value will rise. That's why the value of crypto are not consistent because sometimes it goes down and sometimes it goes down.

That is why included supply and demand as the first reason because the basic rule still applies to everything and it definitely still applies to cryptocurrency also no one can say otherwise. If we get more people using crypto in their daily life we will definitely see a rise in all cryptos.

bitpotter

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Quote from: Alert31 on September 05, 2020, 02:45:10 AM

Affecting the price of bitcoin and other cryptocurrency is all because of demand and supply together with the decision of every people using it to buy and sell. I don't think if there is other factor that make it's price go up and down except people exchange buying and selling.Those other factor you mention is just affecting the peoples decision or the demand.

Most of them just got carried away by the current trend. Perhaps the defi project is very beneficial because of its market volatility so explosive that could get more money, but in another way it can spend your money quickly. Now it remains how to manage it all, when you enter and when you have to leave immediately, it will determine your destiny.

bearexin

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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.

hatshepsut93

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You could continue this list on and on, but don't forget that all these factors also have magnitude, and it can vary from insignificant to big, and it also can be different each time. It can even go against what you would logically expect, like when Bitcoin crashed with the stock market, despite it being theoretically a hedge, or how shitcoins grow despite no developments and inferior technology. Ethereum Classic got 51% attacked many times, but it still didn't fall as much as you would expect.

davis196

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This subject has been discussed before.Can you add anything new to the topic?
The limited supply and unstable demand are what creates a big price volatility.
Most of the crypto traders and newbies are always between FOMO and FUD,so they are always super excited and hyped(FOMO) or super panicking due to the FUD or the price corrections.
The crypto whales are always winning in both cases,because they know when to buy low and sell high.

k@suy

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Quote from: teosanru on September 05, 2020, 02:50:37 AM

Quote from: hassancisse on September 03, 2020, 04:20:41 PM

The prices of cryptocurrencies have been going up and down since it was created and there are so many factors that can make the price fluctuate that way and i will be identifying such factors below:

1. Supply and demand: The higher the demand the higher the price. If theres an high demand for bitcoin and other cryptocurrencies you will definitely see and increase in them. We all know that the total supply of bitcoin is just 21,000,000. This makes bitcoin very scarce and it will definitely see an increase in price following the rule of the lower the supply the higher the price

2. Market speculation: Speculation provides the market with liquidity and the aim of this speculators is to make profit. So many people see cryptocurrency as a speculative tool because its easy to create fear in people about a coin and so many people will FOMO in.

3. Regulatory and Government issues: The government of every country are always finding a way to regulate all cryptocurrencies which is not possible. The fact that they dont like the decentralized nature of it. Cryptocurrency is definitely not accepted in every country in countries where it is accepted and probably the decide to regulate and ban later. This can affect the price of cryptocurrencies badly.

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

I think this is a wrong way to interpret. The reason for market movement has always been demand and supply and nothing else. All these factors that you have mentioned except demand supply are nothing but just factors that affect the demand and supply in some way. So Economically speaking the equilibrium ends up at the point where demand and supply gets exhausted.
Speaking of it financially it's really pretty hard to get an intrinsic value of bitcoin so finding a rough value using finance is almost impossible. Finance generally counts the PV of future cash flows for intrinsic values.

I think the major reason behind the volatily of crypto currencies are the demand of the users. For example of this month has the lowest demand of the users then the next will be affected. The higher the demand the higher that the crypto currency's value will rise. That's why the value of crypto are not consistent because sometimes it goes down and sometimes it goes down.

teosanru

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Quote from: hassancisse on September 03, 2020, 04:20:41 PM

The prices of cryptocurrencies have been going up and down since it was created and there are so many factors that can make the price fluctuate that way and i will be identifying such factors below:

1. Supply and demand: The higher the demand the higher the price. If theres an high demand for bitcoin and other cryptocurrencies you will definitely see and increase in them. We all know that the total supply of bitcoin is just 21,000,000. This makes bitcoin very scarce and it will definitely see an increase in price following the rule of the lower the supply the higher the price

2. Market speculation: Speculation provides the market with liquidity and the aim of this speculators is to make profit. So many people see cryptocurrency as a speculative tool because its easy to create fear in people about a coin and so many people will FOMO in.

3. Regulatory and Government issues: The government of every country are always finding a way to regulate all cryptocurrencies which is not possible. The fact that they dont like the decentralized nature of it. Cryptocurrency is definitely not accepted in every country in countries where it is accepted and probably the decide to regulate and ban later. This can affect the price of cryptocurrencies badly.

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

I think this is a wrong way to interpret. The reason for market movement has always been demand and supply and nothing else. All these factors that you have mentioned except demand supply are nothing but just factors that affect the demand and supply in some way. So Economically speaking the equilibrium ends up at the point where demand and supply gets exhausted.
Speaking of it financially it's really pretty hard to get an intrinsic value of bitcoin so finding a rough value using finance is almost impossible. Finance generally counts the PV of future cash flows for intrinsic values.

Alert31

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Affecting the price of bitcoin and other cryptocurrency is all because of demand and supply together with the decision of every people using it to buy and sell. I don't think if there is other factor that make it's price go up and down except people exchange buying and selling.Those other factor you mention is just affecting the peoples decision or the demand.

pooya87

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everything after number 1 can be categorized as factors affecting demand (aka as a subcategory of #1 supply and demand). specifically #4 which is literary the meaning of demand!

additionally since you are generalizing it to "other cryptocurrencies" then you should factor in the most important thing that affects the price of altcoins which is pump and dumps. without them 90% of altcoins wouldn't exist and they wouldn't have anything else to offer since their entire purpose was to give profit to those who can ride the pump and dump hype.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: coolcoinz on September 04, 2020, 10:16:09 AM

IMO Bitcoin is not an independent system, even though crypto anarchists would like it to be one.

Crypto-anarchists are weed-fed people with a load of bullcrap in place of brains who dont understand the E in Economics. They fail to realize how this world works and hopes to get out of the system and thinks bitcoin to be their saviour while it is not completely correct. Moreover, those who claim to be such are nothing but bagholders who are panicking to sell because they think bitcoin will not be giving them the profit them thought of.

In short, crypto is not something that is is going to change the world overnight. It might change the economy gradually but it will take years. The sane and more logical way of proceeding with it is buying some bitcoin when prices become low. Do not go all in because that is a stubborn move to make. Wait for price to floor and buy it. But keep in mind that the future of bitcoin though bright can become dark anytime.

Cryptoreflector_666

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Quote from: Latviand on September 04, 2020, 02:16:28 PM

Being updated with that is happening around the world can somehow make you knowledgeable about the sudden changes in bitcoin's price and other cryptocurrencies.

Price of bitcoin is easily affected due to the fact that it is volatile in the market.

Some issues can really affect bitcoin due to the connections and factors in the market such as demand about oil, other products, banks and etc. You can't deny that bitcoin is really risky to invest with but if you are courageous to make it grow and you are confident about how you perceive the future of bitcoin and the factors that can affect it, then it is good for you.

To predict the (relative) price of bitcoin in the future, it is necessary to understand how political and man-made disasters affect the financial market. If a major disaster occurs in Japan, it becomes clear that the price of the yen will begin to fall relative to the dollar, so the dollar will begin to strengthen and grow, And the higher the dollar is higher and bitcoin.

hassancisse

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Quote from: btc_angela on September 03, 2020, 05:25:05 PM

You also have to understand that bitcoin is a speculative asset. As such, there could be some we will spread negative news like FUD so it drives the market price to go down. And then when we have exaggerated news, price appreciates and everyone wanted to join the FOMO.

Yea I included market speculation it all comprises of what you mentioned as negative news and FUD.

Latviand

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Being updated with that is happening around the world can somehow make you knowledgeable about the sudden changes in bitcoin's price and other cryptocurrencies.

Price of bitcoin is easily affected due to the fact that it is volatile in the market.

Some issues can really affect bitcoin due to the connections and factors in the market such as demand about oil, other products, banks and etc. You can't deny that bitcoin is really risky to invest with but if you are courageous to make it grow and you are confident about how you perceive the future of bitcoin and the factors that can affect it, then it is good for you.

jekanmasin

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Be Positive Always!

From what i learn so far i did see the market of bitcoin are so affected the price of altcoins. We all can notice if the price of bitcoin rising all other altcoins will follow it as well. But still it just my own opinion from what i learn. But still i can be wrong.

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