Topic: What are the major factors that affect the bitcoin price? - page 3. (Read 616 times)
Each time a government releases official statements about the regulation of digital currencies, the price of bitcoin is normally affected. Even if the actions of that government are not related to the virtual currencies directly, the impact will still be felt. A good example of this can be derived from the Cyprus banking crisis, where the government seized funds. This prompted discussions on whether Cyprus should adopt Bitcoins as their new currency.
The major factor that will affects the bitcoin price was the people buy and seeling bitcoin. Once there were many people willing to buy bitcoin while a limited stocks of bitcoin it will leads to increase in price and on vise versa. We call that law on supply and demand.
There are several major factors that affect the bitcoin price. Supply and demand for the Bitcoins being the first one. If the supply doesn't meet the demand it would certainly increase the prices of Bitcoin.
Second factor would be the government regulations and laws in a country. Countries like Japan where they have been accepted as a legalised mode of payment cause increase in the prices of Bitcoin and countries where it has been not given legal position, prices would automatically go down.
Third factor influencing the price of the bitcoin would be the positive and negative media feedback and news that influence the minds of many people and encourage or restrict them from investing or selling Bitcoins.
Other important factor would be the technological changes. The more better technological advances the more promising future Bitcoins would hold. Newer technology would motivate people to learn the working and utilise it to achieve maximum profits. Better advancements in the working of Bitcoins would make sure that they top the charts among other block chain based coins.
Second factor would be the government regulations and laws in a country. Countries like Japan where they have been accepted as a legalised mode of payment cause increase in the prices of Bitcoin and countries where it has been not given legal position, prices would automatically go down.
Third factor influencing the price of the bitcoin would be the positive and negative media feedback and news that influence the minds of many people and encourage or restrict them from investing or selling Bitcoins.
Other important factor would be the technological changes. The more better technological advances the more promising future Bitcoins would hold. Newer technology would motivate people to learn the working and utilise it to achieve maximum profits. Better advancements in the working of Bitcoins would make sure that they top the charts among other block chain based coins.
Bitcoin is the first most popular digital crypto-currency whose price is influenced by a wide range of factors. Ideally, the bitcoin price is normally expressed as the exchange rate of the bitcoin in relation to other currencies. With an upsurge in the adoption and usage of this digital currency, the demand for bitcoins has significantly increased in the recent past. Note that because of the decentralized nature of this currency, the bitcoin price is not normally controlled by any company, organization or government. This means that before you try to predict the rise or fall in the price of bitcoins, it is important to understand what causes the same. Below are some of the main factors that can influence the bitcoin price:
the first thing that really affect the bitcoin market is of course it depends on the market demand. and the fundamental question is whether the factors that make everyone think to buy or otherwise sell. every person would have their own perception of what causes people to buy or sell bitcoin and personally I think the thing that causes it to happen is the first of course from various news from social media or others that will affect the bitcoin price. the second is certainly the legalization done by the government and I think it will greatly affect the rise in bitcoin prices. and of course there are many other factors that will affect the movement of bitcoin prices.
The major facts that affect bitcoin price is mainly its fluctuations. The price would not increase and not decrease. It struggles to get increase more. Due to false news spread about the bitcoin is also affect the bitcoin growth. False news like bitcoin going to ban would affect the price. Due to this people afraid to hold or invest in bitcoin. This makes demand of supply in the crypto market. So the price would automatically affect this reason.
As far as I know it usually happens that after dropping it begins a new growing phase I mean that a bearish phase of market predates a bullish one. We saw a huge growing in BTC as well as falling after that. Logically the next market phase has to be an upward trend. I have already bought coins in my portfolio and I would recommend all investors to have a look at crypto market because it is now very good for investing.
I mean that for me it is crucial factor that BTC is very low now and it is a good chance to buy.
I mean that for me it is crucial factor that BTC is very low now and it is a good chance to buy.
1. Volume And Distribution of Bitcoin
As a relatively young digital currency, Bitcoin voluem is still very small when compared to other assets such as gold, let alone conventional currencies like the US Dollar.
2. Speculation of Trader
Believe it or not, the number of Bitcoin users who make it a trading asset is more than those who actually use it as a medium of exchange.
As a relatively young digital currency, Bitcoin voluem is still very small when compared to other assets such as gold, let alone conventional currencies like the US Dollar.
2. Speculation of Trader
Believe it or not, the number of Bitcoin users who make it a trading asset is more than those who actually use it as a medium of exchange.
Demand and supply is the main factor that determines the market of cryptocurrencies. Coupled with fundamental analysis
Definitely demand and supply had been considered as a major factor in deciding the bitcoin price.But nowadays,the market FUD has been playing a major role in deciding the fate of bitcoin.Its this fud which big whales had been using from the beginning to promote panic selling.
the latest news I know yesterday mtgox has sold a lot of bitcoin so yesterday bitcoin prices dropped below $ 8k.
I think whales can cause bitcoin's price to rise and fall since they do have enormous holdings of bitcoin. So when they sell it, a dip will occur or it will rise if they buy it in volume. Another factor is the people's demand over bitcoin since it is a basic principle of economics about demand and supply.
I also agree with you. There are a lot of BTC whales in the world and they may have ways to increase or decrease Bitcoin and Altcoin prices. They may have linked up and made money from usBitcoin is the first most popular digital crypto-currency whose price is influenced by a wide range of factors. Ideally, the bitcoin price is normally expressed as the exchange rate of the bitcoin in relation to other currencies. With an upsurge in the adoption and usage of this digital currency, the demand for bitcoins has significantly increased in the recent past.
Factors that affect the price of Bitcoin include:
1) Supply & Demand - At a basic level, the price movements of any cryptocurrency will be driven by its availability. The scarcer a digital coin is, the higher its price levels. In contrast, a virtual currency with an abundant supply will likely experience lower price levels.
2)Mining Difficulty - In the case of proof-of-work blockchains such as Bitcoin, the mining difficulty of a coin can also have a direct relationship with its price. A higher mining difficulty means that it is harder to mine an additional unit of a coin. This can have an impact on a coin’s perceived value, and subsequently its price, as increasing a coin’s supply will require more computing power to be used in the mining process.
3)Utility - A key factor that will affect a cryptocurrency’s price movement is its perceived utility. A virtual currency that possess no practical use will likely be viewed as having no value, which may be reflected with lower market price levels. For example, Ether’s price movements can be attributed to its perceived practical utility, that being a user’s ability to build and launch their own decentralized applications on the Ethereum platform
4)Market News - Market News can also affect a coin’s price movements. Positive or negative news reporting can be a heavy influencer of general market sentiment regarding a particular coin. Media reporting about a network hack for example is likely to drive prices down, whereas, coverage about a coin’s increasing adoption can result in positive market sentiment that drives a coin’s market price upward.
Hope this helps a little! Happy bitcoin-ing!!!
Nice treed on the above question, you've discussed almost everything except on some but very important. Crypto currency price value on the said project can change anytime on the crypto currency market trading because Bitcoin or ALT coin is very Volatile. Yes, it reacts on any bad news or good news just like the issues on banned,scammer, and the issue on regulation by countries with crypto currency digital transaction, the fundamental, market confidence on crypto currency investment, plus the global acceptance on crypto market trading with more participation of investors for ALT coin project.
Factors that affect the price of Bitcoin include:
1) Supply & Demand - At a basic level, the price movements of any cryptocurrency will be driven by its availability. The scarcer a digital coin is, the higher its price levels. In contrast, a virtual currency with an abundant supply will likely experience lower price levels.
2)Mining Difficulty - In the case of proof-of-work blockchains such as Bitcoin, the mining difficulty of a coin can also have a direct relationship with its price. A higher mining difficulty means that it is harder to mine an additional unit of a coin. This can have an impact on a coin’s perceived value, and subsequently its price, as increasing a coin’s supply will require more computing power to be used in the mining process.
3)Utility - A key factor that will affect a cryptocurrency’s price movement is its perceived utility. A virtual currency that possess no practical use will likely be viewed as having no value, which may be reflected with lower market price levels. For example, Ether’s price movements can be attributed to its perceived practical utility, that being a user’s ability to build and launch their own decentralized applications on the Ethereum platform
4)Market News - Market News can also affect a coin’s price movements. Positive or negative news reporting can be a heavy influencer of general market sentiment regarding a particular coin. Media reporting about a network hack for example is likely to drive prices down, whereas, coverage about a coin’s increasing adoption can result in positive market sentiment that drives a coin’s market price upward.
Hope this helps a little! Happy bitcoin-ing!!!
Nice treed on the above question, you've discussed almost everything except on some but very important. Crypto currency price value on the said project can change anytime on the crypto currency market trading because Bitcoin or ALT coin is very Volatile. Yes, it reacts on any bad news or good news just like the issues on banned,scammer, and the issue on regulation by countries with crypto currency digital transaction, the fundamental, market confidence on crypto currency investment, plus the global acceptance on crypto market trading with more participation of investors for ALT coin project.
I think whales can cause bitcoin's price to rise and fall since they do have enormous holdings of bitcoin. So when they sell it, a dip will occur or it will rise if they buy it in volume. Another factor is the people's demand over bitcoin since it is a basic principle of economics about demand and supply.
I also agree with you. There are a lot of BTC whales in the world and they may have ways to increase or decrease Bitcoin and Altcoin prices. They may have linked up and made money from usBitcoin is the first most popular digital crypto-currency whose price is influenced by a wide range of factors. Ideally, the bitcoin price is normally expressed as the exchange rate of the bitcoin in relation to other currencies. With an upsurge in the adoption and usage of this digital currency, the demand for bitcoins has significantly increased in the recent past.
Factors that affect the price of Bitcoin include:
1) Supply & Demand - At a basic level, the price movements of any cryptocurrency will be driven by its availability. The scarcer a digital coin is, the higher its price levels. In contrast, a virtual currency with an abundant supply will likely experience lower price levels.
2)Mining Difficulty - In the case of proof-of-work blockchains such as Bitcoin, the mining difficulty of a coin can also have a direct relationship with its price. A higher mining difficulty means that it is harder to mine an additional unit of a coin. This can have an impact on a coin’s perceived value, and subsequently its price, as increasing a coin’s supply will require more computing power to be used in the mining process.
3)Utility - A key factor that will affect a cryptocurrency’s price movement is its perceived utility. A virtual currency that possess no practical use will likely be viewed as having no value, which may be reflected with lower market price levels. For example, Ether’s price movements can be attributed to its perceived practical utility, that being a user’s ability to build and launch their own decentralized applications on the Ethereum platform
4)Market News - Market News can also affect a coin’s price movements. Positive or negative news reporting can be a heavy influencer of general market sentiment regarding a particular coin. Media reporting about a network hack for example is likely to drive prices down, whereas, coverage about a coin’s increasing adoption can result in positive market sentiment that drives a coin’s market price upward.
Hope this helps a little! Happy bitcoin-ing!!!
The most important factor that influence the price of Bitcoin is DEMAND of Bitcoin for sure. If the demand is more and the supply is less than Bitcoin will surely become more valuable. Factors that affect the price of Bitcoin include:
1) Supply & Demand - At a basic level, the price movements of any cryptocurrency will be driven by its availability. The scarcer a digital coin is, the higher its price levels. In contrast, a virtual currency with an abundant supply will likely experience lower price levels.
2)Mining Difficulty - In the case of proof-of-work blockchains such as Bitcoin, the mining difficulty of a coin can also have a direct relationship with its price. A higher mining difficulty means that it is harder to mine an additional unit of a coin. This can have an impact on a coin’s perceived value, and subsequently its price, as increasing a coin’s supply will require more computing power to be used in the mining process.
3)Utility - A key factor that will affect a cryptocurrency’s price movement is its perceived utility. A virtual currency that possess no practical use will likely be viewed as having no value, which may be reflected with lower market price levels. For example, Ether’s price movements can be attributed to its perceived practical utility, that being a user’s ability to build and launch their own decentralized applications on the Ethereum platform
4)Market News - Market News can also affect a coin’s price movements. Positive or negative news reporting can be a heavy influencer of general market sentiment regarding a particular coin. Media reporting about a network hack for example is likely to drive prices down, whereas, coverage about a coin’s increasing adoption can result in positive market sentiment that drives a coin’s market price upward.
Hope this helps a little! Happy bitcoin-ing!!!
Other factors which also affect the price of Bitcoin is Bitcoin's status around the globe. Any favourable news can take the price of Bitcoin to new heights for sure.
The main factors that greatly affect the price of Bitcoin are the supply and demand in the market. If many people buy Bitcoin with a large amount of Bitcoin prices will soar. Conversely, if many bitcoiners sell Bitcoin, bitcoin prices will fall sharply.
Now policy impact has very important effect to the price of the currency, in September 2017, the Chinese government's policy led to a bit of a drop in prices, in January 2018, South Korea and the policy of the Chinese government and lead to decline in the currency price!
The main factor Bitcoin prices are determined by demand and supply. As demand for bitcoin increases, prices increase and as demand falls, prices fall. Bitcoin is already circulating in number and new bitcoin is made with predictable and declining rates, which means demand must follow the inflation rate to keep prices stable. Since Bitcoin is still a relatively small market compared to the actual potential it can achieve, it does not require a large amount of money to drive up or down market prices, and therefore bitcoin prices are still very volatile.
Those panic seller that join the ride of dumping bitcoim those are the one of the factors that bitcoin affect the price and those called whale they are big hodler of bitcoin theya are easily manipulate bitcoin price.
The most important factor that affects the growth of the bitcoin price is demand (demand generates supply is known to everyone). Secondly, bitcoin is affected by the information flow of news.
The most important factor affecting the price of bitcoin, I think, is market sentiment. Now the encrypted world is not lack of funds. Many large institutions and investors are going to enter the market. When the market is going down, these funds will not enter easily. If the market has policy support, then everyone's mood of encrypting money is very hot. At this time, it is easy to go up quickly.
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