Topic: What affects the price of bitcoin and other cryptocurrencies (Read 627 times)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

I agree, it has been known before that those influencers affect the market just like how whales make the volatility moves up and down. There are other factors too that could change the price drastically like the Bitcoin halving, FUD, or even a small news from the known sites will affect the price too. Social media is the greatest thing that they could ever use to influence the market with how the volatility moves.

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.

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.

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.

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.


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.

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.

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.

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.

Im pretty sure at this point it is only whales.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

 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.

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.

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.

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.

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

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.

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.

I'd add another point, OP: the stock market. In the last 3 days we've witnessed a significant decline in the price of stocks that was more or less mirrored by Bitcoin and other cryptocurrencies. Last time it happened it was Spring when the pandemic was announced and bitcoin followed the stock market to a short-term bottom.
IMO Bitcoin is not an independent system, even though crypto anarchists would like it to be one.

Frankly speaking the price of Bitcoin and especially the cryptocurrency market at the moment is controlled by Whales. The Marketcap of the cryptocurrency market is not that much at the moment.

If you compare it with the stock market.

It will take time for the market to evolve, still the market is much stable as compared to what it was in 2017 and before. I am not an analyst but it is a simple math if you know the market.

I agree with the first point and with the second one. However, I don't think that the last three are particularly important. #3 won't affect the price much if the country is not among those where Bitcoin is the most used coin or if the media does not give broad coverage of the story. So this can largely be added to point #2. As for the number of users, I don't think it affects the price significantly, not anymore. There are more users now than there were in 2017 (right?), but the price is way lower. And regarding the issues with the technology itself, it might affect the price in the future, but I don't think it affected it yet.

This is absolutely true.The key is understanding what causes the demand,and the level of demand at any particular time, because with Bitcoin, we already know the max supply and can closely estimate the circulating supply.

I'd like to think of it actually as only Supply and Demand being the direct factors affecting BTC price, while the rest of the factors affect the demand for it. Ofc, an easy explanation would be every factor possible affects BTC in general, but I'm pretty sure such a notion is pretty wrong. It's like Supply and Demand 100% affects the market, while the rest have a 50/50 chance of actually affecting not the Supply ofc, but rather the demand. This makes it a lot clearer that the rest of the factors except for supply and demand aren't really accurate most of the time, and could actually prove to be opposite of what most actually speculate it to be.

This topic has been discussed at length previously but yet it finds its way back here.

The only thing that directly affects the price is demand/supply. If people are buying it more its price will rise. Supply is still fixed, so supply will be the reason why price rise even more in future. It is deflationary after all.

Rest of them all, political news, governments banning stuff - all have an indirect effect through the attitude of the traders. Inorganically created demand to raise price does not stand for long as we all have seen, good example is the 2017Q4 pump.

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.

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.

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.

All of those factors given above are just common that do really affect crypto market but theres no assurance or proof when it comes to fundamentals
but surely it will always reflect or depend out on that basic supply and demand thing but determining it earlier or knowing the possible movements ahead
then its already an impossible thing for someone to know.As a trader or investor then you should at least consider on using up these infos for your own
benefits or utilizing it on your investment decisions.

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