Topic: Why Bitcoin price is so volatile? What are the major factors that drive it? - page 2. (Read 530 times)
March 09, 2021, 07:54:36 PM
The main reason is that Bitcoin is decentralized, it is not a stable coin. The market really depends on the supply and demand in the market. The price will also drop and rise so significantly because f the supply and demand, also because of the fundamentals. So far, because Bitcoin is volatile, this is utilized by many crypto lovers to take profits from this by trading or even investing.
March 09, 2021, 07:38:18 PM
I am wondering why Bitcoin price is much more volatile than the stock market?
Let's just stick with Bitcoin only. Bitcoin have a market cap close to $1T as we speak and, yet, its price is still so volatile. Is it because the availability of bitcoins in the market is low as most people (especially the new institutional investors) are hodling?
Is it fair to compare Bitcoin (or crypto market as a whole) to a stock market like SP 500 (which currently has $31.61 trillion market cap)? If so, Bitcoin cap is only 3% of the SP500. Is it because of its relatively lower market cap which make it easier for its price to be manipulated (i.e., by a pump-and-dump)?
What do you think?
Price volatility hasn't changed for Bitcoin and also with other following coins, that continue to change everytime fluctuations happened. Manipulation? I don't think so because whales is now a part of its progressive growth. Even though we've seen some corrections but it doesn't hinder the pumps happening these days, and the community contributes on worldwide demand which is a big factor for continuing increase for its potential profit. Let's just stick with Bitcoin only. Bitcoin have a market cap close to $1T as we speak and, yet, its price is still so volatile. Is it because the availability of bitcoins in the market is low as most people (especially the new institutional investors) are hodling?
Is it fair to compare Bitcoin (or crypto market as a whole) to a stock market like SP 500 (which currently has $31.61 trillion market cap)? If so, Bitcoin cap is only 3% of the SP500. Is it because of its relatively lower market cap which make it easier for its price to be manipulated (i.e., by a pump-and-dump)?
What do you think?
March 09, 2021, 04:52:27 PM
Never ever that it do happen for bitcoins price to be not volatile because even if its just starting to be trade off then volatility is already tied to it.There might be times that price is somewhat on the sideways movement
but wont still be considered on that stability side of things.
Factors that do affect volatility? Of course this talks to demand which is a casual thing plus those sentiments that circling around the market knowing that this place is highly reactive
to news and events that do happen.So better watch out.
If this place havent this kind of level of volatileness then thats already a reason on not getting that much of attention by investors.Moving prices in larger extent does have pro's.
but wont still be considered on that stability side of things.
Factors that do affect volatility? Of course this talks to demand which is a casual thing plus those sentiments that circling around the market knowing that this place is highly reactive
to news and events that do happen.So better watch out.
If this place havent this kind of level of volatileness then thats already a reason on not getting that much of attention by investors.Moving prices in larger extent does have pro's.
March 09, 2021, 11:33:28 AM
Maybe because cryptos like bitcoin are purely driven by the demand and supply it doesn't become more volatile than other asset like stocks etc. Stocks performance usually heavily affected by the company behind it meanwhile paper money affected by the government that issued the money.
But overtime if there's many crypto company out there and they are growing day by day until they reach the point where most of them could compete with the large corporations that already exist, i could imagine bitcoin and any other crypto becomes less volatile.
But overtime if there's many crypto company out there and they are growing day by day until they reach the point where most of them could compete with the large corporations that already exist, i could imagine bitcoin and any other crypto becomes less volatile.
One of the reasons for the increased volatility is the lack of rules in trading, when the price changes very quickly. It is possible that someday we will see the same rules that exist on the stock exchange - Limit Up/Limit Dow, when trading is suspended for 5 minutes if the price changes significantly.
March 09, 2021, 09:28:57 AM
The main influence of unstable bitcoin price movements is of course due to very high demand while the very limited supply of bitcoin will have a strong influence on the price of bitcoin, so in my opinion bitcoin has the potential to be very expensive because many will look for bitcoin and buy it as expensive as it is available at an exchange at a great price.
21 million supply is not Verry limited because we are talking millions not only 1 but 21 million but it looks small compare to cryptos that have a numerous billions of supply .it's not practical to buy Bitcoin at its Verry expensive price but practical investors are waiting for btc to go down before they start moving .
we are working smarter if we do that than buying at expensive price to think that btc will still increase . It's not working hard but is a pain in the pocket
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March 09, 2021, 02:58:14 AM
Maybe because cryptos like bitcoin are purely driven by the demand and supply it doesn't become more volatile than other asset like stocks etc. Stocks performance usually heavily affected by the company behind it meanwhile paper money affected by the government that issued the money.
But overtime if there's many crypto company out there and they are growing day by day until they reach the point where most of them could compete with the large corporations that already exist, i could imagine bitcoin and any other crypto becomes less volatile.
But overtime if there's many crypto company out there and they are growing day by day until they reach the point where most of them could compete with the large corporations that already exist, i could imagine bitcoin and any other crypto becomes less volatile.
March 09, 2021, 02:36:30 AM
I am not sure as what is the major factor that affects the volatility of the prices but I think that speculation of the market prices is one of them because with speculation, trades are continuously happening which means that there is a lot of buying and selling which affects the supply and demand which is the direct reason for the prices of bitcoin which means that the more the trading volume, then the more the volatility will be. We don't have to worry about volatility though as it is present in almost any markets, its just that bitcoin market has a more prominent and noticeable price changes.
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March 09, 2021, 01:28:48 AM
I believe that unregulated markets will always be volatile, because there is no stable situation in human nature, we always like to play big and make big decisions, because we do not want to make 10% per year and get rich in 30 years, we want to get rich right away today.
The regulated market is also unstable with all the rules and regulations put in place so there's no way the unregulated won't be worse than that of the regulated. The greed is the reason the market is so volatile couple with the fact, this is a very speculative market that attract lots of investors only in for the money and bit the technology.
Other market has reasons for their fundamentals to be put into consideration but that of the cryptocurency is mainly based on speculation, nobody will invest irrespective of what the fundamentals are if the price won't appreciate in the shortest time possible. That's the reason only coins that re hyped usually get the fair share of the market capitalization.
It'll be impossible for bitcoin to be stable, it could lose the heat of it's volatility but it won't be lost completely since that's what makes the market very attractive.
March 08, 2021, 09:18:08 PM
Bitcoin is still a new a market and the $1 trillion achievement we have made is way less compared to the stock market.
So, if we want a market that is stable, then we should aim towards having more of the smaller investors than the institutional investors. Take for example, Tesla bought $1.5 billion worth Bitcoin, what do you think will happen when they sell it? The market will drop for sure when that kind of money is removed.
I wouldn't consider bitcoin as new market, it has been ten or twelve years already, when are we going to stop calling it a new market, maybe its year of operation is dwarfed by stock market but I don't think that bitcoin is a new market. I do agree with you about resolving the volatility but I don't think that it will happen anytime soon, bitcoin is used by many to make profits and I think that they will do anything to have the volatility stay.So, if we want a market that is stable, then we should aim towards having more of the smaller investors than the institutional investors. Take for example, Tesla bought $1.5 billion worth Bitcoin, what do you think will happen when they sell it? The market will drop for sure when that kind of money is removed.
March 08, 2021, 02:54:41 AM
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What's different about bitcoin is that it's a completely new asset class. So, new to the market. But since the beginning of bitcoin, you could make a direct investment in the original bitcoin, the bitcoin digital currency. Of course, there is a lot of controversy. Some people say that these are two different types of bitcoin.
March 08, 2021, 02:28:47 AM
I believe that unregulated markets will always be volatile, because there is no stable situation in human nature, we always like to play big and make big decisions, because we do not want to make 10% per year and get rich in 30 years, we want to get rich right away today.
I also feel that way as well, if someone puts 10% of his salary into something that gives 10% profit per year for 30 years, of course depending on his salary but he will be very rich when he retires, some people work from 20 years old to 70 years old, that is 50 years, that would be insane amount of money when you retire if you are lucky. But I will be 70 years old by that time, I may have maybe 5 to 20 years at most, 90 years old people can't really do much, so I say 5 to 10 years at the very most, why be rich when I am barely alive when I can be rich a lot earlier? That is why I want to make a profit and retire before 40 so I can enjoy retirement for 40 years.
I also feel that way as well, if someone puts 10% of his salary into something that gives 10% profit per year for 30 years, of course depending on his salary but he will be very rich when he retires, some people work from 20 years old to 70 years old, that is 50 years, that would be insane amount of money when you retire if you are lucky. But I will be 70 years old by that time, I may have maybe 5 to 20 years at most, 90 years old people can't really do much, so I say 5 to 10 years at the very most, why be rich when I am barely alive when I can be rich a lot earlier? That is why I want to make a profit and retire before 40 so I can enjoy retirement for 40 years.
March 07, 2021, 03:30:06 AM
I wouldn't consider bitcoin as new market, it has been ten or twelve years already, when are we going to stop calling it a new market, maybe its year of operation is dwarfed by stock market but I don't think that bitcoin is a new market.
What's different about bitcoin is that it's a completely new asset class. So, new to the market. But since the beginning of bitcoin, you could make a direct investment in the original bitcoin, the bitcoin digital currency. Of course, there is a lot of controversy. Some people say that these are two different types of bitcoin.
March 07, 2021, 01:02:24 AM
Bitcoin is still a new a market and the $1 trillion achievement we have made is way less compared to the stock market.
So, if we want a market that is stable, then we should aim towards having more of the smaller investors than the institutional investors. Take for example, Tesla bought $1.5 billion worth Bitcoin, what do you think will happen when they sell it? The market will drop for sure when that kind of money is removed.
I wouldn't consider bitcoin as new market, it has been ten or twelve years already, when are we going to stop calling it a new market, maybe its year of operation is dwarfed by stock market but I don't think that bitcoin is a new market. I do agree with you about resolving the volatility but I don't think that it will happen anytime soon, bitcoin is used by many to make profits and I think that they will do anything to have the volatility stay. So, if we want a market that is stable, then we should aim towards having more of the smaller investors than the institutional investors. Take for example, Tesla bought $1.5 billion worth Bitcoin, what do you think will happen when they sell it? The market will drop for sure when that kind of money is removed.
March 07, 2021, 12:54:26 AM
Bitcoin is still a new a market and the $1 trillion achievement we have made is way less compared to the stock market. Maybe with time we will reach a higher market cap. But one thing I usually believe is that we need more retail investors than the big traders (whales) because the more that there are so many retail investors buying and selling cryptocurrency, the more it will become balanced, but when there are more of whales pumping and dumping with their billion dollars, the market will remain very volatile.
So, if we want a market that is stable, then we should aim towards having more of the smaller investors than the institutional investors. Take for example, Tesla bought $1.5 billion worth Bitcoin, what do you think will happen when they sell it? The market will drop for sure when that kind of money is removed.
So, if we want a market that is stable, then we should aim towards having more of the smaller investors than the institutional investors. Take for example, Tesla bought $1.5 billion worth Bitcoin, what do you think will happen when they sell it? The market will drop for sure when that kind of money is removed.
March 06, 2021, 11:22:41 PM
Volatility mainly drives from being unregulated and I still think that it is a good think and not a bad thing, I believe we should probably just accept it as it is because we are profiting from it as well.
It is only existing in crypto market. This characteristic of volatility can not be found in other markets. There are circuit breaks in stock markets. The unrestricted margin of volatility for now gives us chances and risks. To get profit and reduce losses, we have to manage risks for our investments and tradings. By manage our portfolio and decentralize it.Quote
I get that people do not like it when it goes down so much so quickly, who would love to see 30% go down that is of course a bad thing for many people but we have also made 5x increase as well so if we didn't had that kind of volatility we couldn't make any profit like this neither. Long story short we are not in a bad situation with these volatile prices, we should see this as an advantage and just focus on buying more and more during drops and smiling during the bull periods 
.
Make stop loss or stop limit for trades. If your position is on-going with profit but you want to take profit at higher targets, use positive stop loss for your profit. It will protect your profit and your capital. Don't be greedy and lose profit as well as capital with crash by too high volatility in crypto. .
March 06, 2021, 12:54:36 PM
Let's just stick with Bitcoin only. Bitcoin have a market cap close to $1T as we speak and, yet, its price is still so volatile. Is it because the availability of bitcoins in the market is low as most people (especially the new institutional investors) are hodling?
Is it fair to compare Bitcoin (or crypto market as a whole) to a stock market like SP 500 (which currently has $31.61 trillion market cap)? If so, Bitcoin cap is only 3% of the SP500. Is it because of its relatively lower market cap which make it easier for its price to be manipulated (i.e., by a pump-and-dump)?
Volatility mainly drives from being unregulated and I still think that it is a good think and not a bad thing, I believe we should probably just accept it as it is because we are profiting from it as well.Is it fair to compare Bitcoin (or crypto market as a whole) to a stock market like SP 500 (which currently has $31.61 trillion market cap)? If so, Bitcoin cap is only 3% of the SP500. Is it because of its relatively lower market cap which make it easier for its price to be manipulated (i.e., by a pump-and-dump)?
I get that people do not like it when it goes down so much so quickly, who would love to see 30% go down that is of course a bad thing for many people but we have also made 5x increase as well so if we didn't had that kind of volatility we couldn't make any profit like this neither. Long story short we are not in a bad situation with these volatile prices, we should see this as an advantage and just focus on buying more and more during drops and smiling during the bull periods
. 
March 05, 2021, 02:52:19 AM
Volatile is a quality that Bitcoin has. I am not very wise about this. However, it can be said that if it were not for Volatile, Bitcoin would not be so popular in the currency world today, its demand would not be so wide. Since everyone expects to profit by trading, if Bitcoin were not volatile, no one would trade here. Satoshi did not invent bitcoin or blockchain without a goal. Probably a factor as to why they're doing so poorly. In my opinion, that may be the reason.
That's what I've been saying for years and now that people are starting to whine about it again.
They loved it when Bitcoin jumped from $40k to 57k, so why should we be upset when it went down back to that levels in just as quick a timeframe? And it's back in between those ranges right now so I would be happy and take it.
Volatility makes people scared, but they forget they were excited too when they got in;)
March 05, 2021, 01:56:55 AM
I get why volatility is not attractive for people who want to keep value and protect in in the medium and short term, but then who does that for Bitcoin anyway? Even with MicroStrategy and all those putting money into BTC, they're expecting to store it there for many years, not just a few months or even a couple of years.
Day traders and leverage traders should love BTC for this volatility too. So why all the hate?
This is very common among average people, they want big profits but they do not want to understand that for that you need volatility and volatility cuts both ways, just as there can be a great growth there can be a great drop in the price as well, so I think this dissatisfaction with the volatility has more to do with the impossible goals that most people have when it comes to making money in bitcoin, traders accept the volatility and welcome it as they can make money with it, institutional investors think they can manage it and they invest in bitcoin too, but most people cannot handle it and instead of just turning their sights to other investment options they want this market changed so it fits their needs, which as we know it is impossible. Day traders and leverage traders should love BTC for this volatility too. So why all the hate?
March 04, 2021, 01:01:28 PM
I am wondering why Bitcoin price is much more volatile than the stock market?
Is about the community, there are more users in the bitcoin markets than users in the stock markets... Is easy for anyone to buy bitcoin, even a kid can open an account on an exchange and buy coins with the Paypal account he uses for his games.
There are some whales and beers in the market, but take the example of Tesla... he buys 1.5B and that is less than 2% of the full market, so, bitcoin is volatile because there is a lot of people involved.
March 04, 2021, 12:10:54 PM
For me, the volatile price that occurs in Bitcoin is due to supply vs demand, fear vs greed and 24/7 Bitcoin trading. These three factors make
the Bitcoin price move very significantly and uncontrollably. Therefore Bitcoin trading is a very high risk activity. Because at one time we can
make very large profits, at other times we can experience huge losses. Very good strategy and analytical skills are needed to be able to read
Bitcoin price movements.
It's the norm when you are trading. the Bitcoin price move very significantly and uncontrollably. Therefore Bitcoin trading is a very high risk activity. Because at one time we can
make very large profits, at other times we can experience huge losses. Very good strategy and analytical skills are needed to be able to read
Bitcoin price movements.
You lose one day then you can get it back the next day.
Selling everything might be a bad idea though. I'd rather put a limit on how much I could trade.
Yes, higher profits will come to those who risk it all but what if it won't go the way on how you predicted it?
Always be prepared with the volatility. Somehow you could save all your losses by also saving some Bitcoin in your wallet.
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