What is the factor that affects the price of bitcoin

Nrcewker

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Quote from: Susano on January 23, 2023, 12:30:12 PM

There are a bunch of preconceived ideas about the aspects or justifications that affect the price of Bitcoin. I will give you some illustrations: Contest; Cost of production; Supply and Demand; Restrictions and Legal Matters etc.

In your statement or ideas, what are the elements that can influence the price of bitcoin?

Majorly according to me, the price mainly depends on supply and demand. As the Bitcoins are limited in number, that is the supply cannot be increased more, hence when the demand of the coin increases, the price will also grow. This can be simply demonstrated, if you visit an exchange and there is more buy order than sell order. Yes the other factor also affects the price and act as catalyst, but this supply and demand factor plays the important role.

LUCKMCFLY

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I don't think that only one factor has an affect, I think there are many, such as whales, fundamentals, emotions, institutions, but for me what I think is happening is that it affects at this moment are the fundamentals, because they generate emotions that They become a domino effect. Now taking all this into consideration, it could be said that at this moment it is very difficult to say that only one factor can affect the price of bitcoin, if so, things can go in one direction, but it is not, but many believe that Yes, I am inclined towards only one and the fundamental war.

irhact

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Quote from: Susano on January 23, 2023, 12:30:12 PM

In your statement or ideas, what are the elements that can influence the price of bitcoin?

Emotions, I believe emotions because human emotions still plays a major role in the price movement of Bitcoin. The market isn't mature yet and been filled daily with novice who only comes here to try and get rich quick. They trade mainly on their emotions as they get easily influenced by the influencers on social media. They buy when they see the market picking up some price appreciation and sell at the slightest red candle they see.

With the constant level of price difference that happens to Bitcoin price during the bull and bear market, it only shows that the industry is yet matured and been ran by emotions of traders. To get the price mooning, all you just need, is to make the news positive and people will begin to fomo into the market.

Negotiation

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That's right, supply and demand are the factors that affect the price of bitcoin usually goes up depending on the demand. Well of course this is a fundamental factor as it refers to any monetary unit be it securities or cryptocurrencies. The exchange rate rises in conditions of increased demand if people are ready to buy and buy, and falls if its demand decreases. In fact, every bitcoin holder if he skillfully and timely takes advantage of the artificially created hype and panic of rate changes can make or break it.

Ayers

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There are many factors that affect the price of a commodity and bitcoin is no different, external influences like macroeconomics to internal influences like market news, but the biggest factor that will determine the price of bitcoin is supply and demand. But currently, bitcoin price is not determined by supply and demand, sharks manipulate bitcoin price. The bitcoin market is still small, so manipulation is inevitable. Over time as bitcoin becomes more mature and larger, manipulation will gradually disappear, and it will depend mainly on supply and demand.

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In the first place is supply and demand.
Supply and demand are the biggest factor in determining the price of any commodity or currency in the market.

In the second place comes production, whether the cost of production or the quantity of production, but the quantity of production is inversely proportional to supply and demand, because an increase in production leads to a decrease in demand and a decrease in production leads to an increase in demand.

Finally, the big news, whether it is economic, such as the adoption of some countries or large companies for Bitcoin, or political, such as the Russian-Ukrainian war.

Jawhead999

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Quote from: Susano on January 23, 2023, 12:30:12 PM

There are a bunch of preconceived ideas about the aspects or justifications that affect the price of Bitcoin. I will give you some illustrations: Contest; Cost of production; Supply and Demand; Restrictions and Legal Matters etc.

What's the contest do you mean?

If you think mining rigs, maintenance, electricity cost etc are the cost of production to create Bitcoin, it's not actually right because it's vary from one country to another, also many people willing to spend a lot to buy Bitcoin.

Restrictions and legal matters can affect Bitcoin price especially the big country which done that, however I haven't heard about restriction and ban of Bitcoin in the last 2 years.

hugeblack

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Anything that affects supply and demand has an effect on the price, and if the effect is not direct, then the number of bitcoins supply positively affects the price in the long run, and therefore some news such as a country or a company buying thousands of bitcoins is a positive sign in the short term and vice versa.
The news has a domino effect, especially if it spreads and traders believe it because they will sell and thus create more supply than demand.

If you are an investor in the long term, you will not care about all these variables that affect the short term, because as long as there is demand and with our knowledge of limited supply, the price will increase sooner or later.

bounceback

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Mass adoption.
Bitcoin is a Cryptocurrency whose supply is limited so I think adopters are one of the factors that greatly influence the movement of bitcoin prices because when enthusiasts for bitcoin increase while supply circulating in the market is limited then enthusiasts will of course offer bitcoin prices at higher prices in the market, imagine if one day bitcoin is well received by all countries and has use cases in real everyday life such as the use of fiat currency will most likely make its price more valuable.

DoublerHunter

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Quote from: Susano on January 23, 2023, 12:30:12 PM

~snip~
In your statement or ideas, what are the elements that can influence the price of bitcoin?

^There are too many factors that affect the BTC price.
Big news either positive or negative will somehow have an impact on the BTC price same as on FTX bankruptcy and the drama of Binance that creates FUD for the people which has an impact on the BTC price. These are some examples that we consider, fundamental analysis somehow is a good strategy for looking after the market when it comes to predicting the price. Though BTC is a very volatile price bit still it can be influenced by the price in different big events.

_BlackStar

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Quote from: Susano on January 23, 2023, 12:30:12 PM

In your statement or ideas, what are the elements that can influence the price of bitcoin?

Regulation - world political situation - world economic situation - disasters - wars - failure of major projects - and many more. All of that will affect the interest of investors and traders which in turn has an impact on demand and supply. Basically this is very general question, so I think you can get quite number of reasons if you do keyword search ^{[like your topic title].}

Next, you may ask what makes it worthless. But try to read further because basically bitcoin is a very volatile asset. Also it is relatively new currency and of course it is always possible to fail at some point such as technical failure and currency competition.

mvdheuvel1983

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Quote from: Susano on January 23, 2023, 12:30:12 PM

There are a bunch of preconceived ideas about the aspects or justifications that affect the price of Bitcoin. I will give you some illustrations: Contest; Cost of production; Supply and Demand; Restrictions and Legal Matters etc.

In your statement or ideas, what are the elements that can influence the price of bitcoin?

It is simple- supply and demand. On the supply side, there is a limited supply of 21 million bitcoins. Despite this, it is more scarce and there millions of bitcoins that are lost. We know that some people may have lost their private keys etc While on the deman side - market sentiments is what drives it.
When there is hack it affects price, when businesspeople try to make bitcoin more accessible to the public the price of bitcoin is affected. etc These are to the best of my knowledge the factors that affect bitcoins price.

teosanru

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Quote from: Susano on January 23, 2023, 12:30:12 PM

There are a bunch of preconceived ideas about the aspects or justifications that affect the price of Bitcoin. I will give you some illustrations: Contest; Cost of production; Supply and Demand; Restrictions and Legal Matters etc.

In your statement or ideas, what are the elements that can influence the price of bitcoin?

In a very longer term it's obviously overall demand of the market and supply related to that asset. Also it's very obvious that potential of future earnings from that asset is also a factor in bitcoin you can say the potential of future adoption will be that factor. In the other smaller time frames, obviously it's news, new developments, whale play, legalities and all these things. In very small time frames it's generally just market makers actions.

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Quote from: mindrust on January 25, 2023, 08:56:30 AM

Coin whales.

Everything else is pretty insignificant. If the whales decide to buy, the prices rise. If they panic, the prices fall. It is that simple.

Lol that's not necessarily true at all. Whales do definitely have a decent amount of impact in the markets, but they don't control the markets at all. The 2017 and 2021 bull markets were heavily influenced by retail traders.

Crypto_H

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Quote from: Susano on January 23, 2023, 12:30:12 PM

There are a bunch of preconceived ideas about the aspects or justifications that affect the price of Bitcoin. I will give you some illustrations: Contest; Cost of production; Supply and Demand; Restrictions and Legal Matters etc.

In your statement or ideas, what are the elements that can influence the price of bitcoin?

There are several factors that can affect the price of bitcoin, including:

Market sentiment: The overall perception of bitcoin by investors and traders can impact its price. Positive sentiment can drive the price up, while negative sentiment can drive it down.

News and events: Any significant news or events related to bitcoin, such as a major company announcing plans to accept it as a form of payment, can also affect its price.

Supply and demand: The basic economic principle of supply and demand also applies to bitcoin. If demand for bitcoin increases while the supply remains the same, the price will go up.

Regulation: Government regulations and legal developments related to bitcoin can also impact its price.

Competition from other cryptocurrencies: As the cryptocurrency market continues to evolve and grow, competition from other digital currencies can also affect the price of bitcoin.

Market manipulation : Unscrupulous traders and investors can use various tactics to artificially inflate or deflate the price of bitcoin.

tvplus006

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Quote from: Susano on January 23, 2023, 12:30:12 PM

...In your statement or ideas, what are the elements that can influence the price of bitcoin?

The price of bitcoin, like the price of any good or service, is subject to the law of supply and demand. If the supply of BTC in the market exceeds the demand, then the price of bitcoin will decrease and, accordingly, vice versa, if the demand exceeds the supply, then the price of BTC will increase.

Zaguru12

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The major factor that affects bitcoin is the demand and supply rule. As bitcoin is stated to be 21million, once the price is achieved or almost achieved the price might increase because many will demand it.
Another factor is the cost and maintenance of mining tools once this gets expensive then it can greatly influence bitcoin market.
They’re also regulations or restrictions from bitcoin, economical factors like recession which when faced could prompt many to sell and could badly affect the price of bitcoin.
The most common one is scams by other altcoins or exchange crashes. When altcoins falls some investors run towards bitcoin while some that lack the knowledge of bitcoin tag it as same and could go out of it. Exchange crashes affects its price when many who actually store their bitcoin on the exchange losses it.

mindrust

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Quote from: Susano on January 23, 2023, 12:30:12 PM

There are a bunch of preconceived ideas about the aspects or justifications that affect the price of Bitcoin. I will give you some illustrations: Contest; Cost of production; Supply and Demand; Restrictions and Legal Matters etc.

In your statement or ideas, what are the elements that can influence the price of bitcoin?

Coin whales.

Everything else is pretty insignificant. If the whales decide to buy, the prices rise. If they panic, the prices fall. It is that simple. Miners have very little impact on the prices because the block rewards are pretty small now and it will even get smaller after the next halving.

The central bank interest rates seems to have a considerable effect on the asset prices as well. The more the interest rates rise, the more people lose their interest in the other investment options.

Jody.Drummer

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There will be many factors that affect the price of bitcoin, both internal (from bitcoin itself) and from external factors that will make price movements.
supply and demand are the internal factors that will affect the price of bitcoin, and that is probably the one we all know about. But there are other factors that will also affect the price even though it comes from outside, let's call it FUD, the collapse of several large banks, or there are major events related to the economy for example. This will more or less affect the price of bitcoin.

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Quote from: blockman on January 24, 2023, 10:31:02 AM

Its supply and demand are given knowing that this is the nature of any asset that has a market. I do agree about the news, since when I started to get into this market. One huge factor that affects the price of bitcoin is the news, good and bad.
But mostly, when a bad news is inserted to the market which will send FUD to everyone, that's making the price fall too easy and quickly and that's what the whales like.

basically, we are playing on this market via supply and demand. the news surrounding this market is just one of its contributing factors how supply and demand will behave and perform after it influences by such factor.
we have seen that a sudden failure of known crypto company can influence right away on the trend, however, the market will bounce once such situation has been handled.

Wind_FURY

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Quote from: Susano on January 23, 2023, 12:30:12 PM

There are a bunch of preconceived ideas about the aspects or justifications that affect the price of Bitcoin. I will give you some illustrations: Contest; Cost of production; Supply and Demand; Restrictions and Legal Matters etc.

In your statement or ideas, what are the elements that can influence the price of bitcoin?

The state of the economy. If it's in a recession the people would have no, or less, disposable income available to invest in stocks/bonds/cryptocurrencies.

Market sentiment is also another important element that can influence the price of Bitcoin. Because if everyone is bearish, there's less demand, and if there's less demand = no surge in price.

blockman

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Its supply and demand are given knowing that this is the nature of any asset that has a market. I do agree about the news, since when I started to get into this market. One huge factor that affects the price of bitcoin is the news, good and bad.
But mostly, when a bad news is inserted to the market which will send FUD to everyone, that's making the price fall too easy and quickly and that's what the whales like.

adaseb

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Right now and pretty much right after Covid broke out it was it’s correlation with macro and especially with nasdaq index. It follows nasdaq closely because those are mostly tech stocks and Bitcoin is obviously tech related.

During Covid crash it was risk off mode and the panic of the stock market turned onto the crypto markets. Then when the stimulus hit the risk on from the stock market followed the crypto markets. Until the fed rate hikes and both stocks and crypto went down. So macro is very important right now for crypto.

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In the grand scheme of things it pretty much just boils down to supply and demand. There are things such as hype/publicity/news, institutional/retail interest, etc — but in the end, they pretty much fall under the supply and demand umbrella.

Mahanton

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News
-Neither creates FUD
-Neither creates Fomo

Huge events
-Neither positive
-Neither negative

Some personality shilling
or spreading out basing on what are the things they do have
in mind. Cheesy

This is why its really that hard to guess up whether these things could make out some
effect or not on the time they would be seen on the market.

Susano

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There are a bunch of preconceived ideas about the aspects or justifications that affect the price of Bitcoin. I will give you some illustrations: Contest; Cost of production; Supply and Demand; Restrictions and Legal Matters etc.

In your statement or ideas, what are the elements that can influence the price of bitcoin?

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