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Topic: Why crypto market is volatile - page 7. (Read 15787 times)

hero member
Activity: 1092
Merit: 501
March 13, 2019, 03:23:35 PM
Probably due to low marketcap of whole crypto industry, it's easy to manipulate such low volume market when you have money (there is also media manipulation).
There are so many variables that could be fit into a regression equation and you would come to know that they are still not enough to explain the volatility impact of the cryptocurrency. So it is quite obvious that holders who have large volumes of coins could be one among so many other factors. The fact that the markets of Bitcoin are liquid is another reason and the list continues.
member
Activity: 868
Merit: 16
March 13, 2019, 05:05:06 AM
Cryptocurrency market is highly volatile because of the low capitalization if to compare with traditional markets, so any news can have a big influence on prices.
I guess it will be same to the stuff which regulated by goverment, the price stuff depend on supply and demand which is will give affect to the price stuff. In my country the price cron slowly rise because many people who want to buy crown for  made a meal as a traditional celebration, whilst corn supply is limited due to several reasons and this is make the price cron rise soared. This thing will be same to the market cryptocurrency.
jr. member
Activity: 378
Merit: 1
March 13, 2019, 04:57:39 AM
every second there are many who make transactions on the market so this causes prices to fluctuate. this is common in the crypto market, so don't be surprised when you see the market increase like 2017 or when the market is like now at a low price.
hero member
Activity: 1148
Merit: 527
March 13, 2019, 04:53:17 AM
market is volatile because people whats quick cash. so most of pump and dump group or whales will provide traps for newbies and by the time market is pumping, this people will take profit  instantly.
This is exactly what the system seems to be bringing to the table now, a means of investing and making quick cash not a means of digital currency exchange or spending which is the original purpose of crypto currency which virtually every one of us is beginning to forget.

I blame this on poverty level in the world because most people coming in as investors especial the minor investors sees it as a way to make money without struggling or working rather than just HOLD and wait. The system and who ever created it needs to revisit the project and looks for a way where it’s original purpose for creation will be fully achieved.
hero member
Activity: 1666
Merit: 887
March 12, 2019, 12:08:59 PM
why is it very volatile maybe because crypto market is almost similar to stocks, and the most influential in this case is FUD and the remaining market sentiment to fluctuate because the development of the project does not exist / is hampered (ICO, STO and other projects)
member
Activity: 896
Merit: 10
March 12, 2019, 11:31:27 AM
Hey, I have some moderate experience over this crypto world. Why the market is extensively volatile. Alike traditional market does crypto too impacted of many major changes.

What i assume is that since crypto volatility is make up by human supply and demand and when there is human there is feelings and fear is definitely one of them most of us does not have deep pocket that can tank the falling market so they rather choose to exit when the see a fall in price.
jr. member
Activity: 159
Merit: 1
March 12, 2019, 11:30:54 AM
Of course, no control, no country to claim ownership, Blockchain records always intact and can't be tampered with.

Then so much speculations and manipulation. So token have no product use and die off quickly once it gets to exchange or  admins cash out quickly
member
Activity: 1078
Merit: 10
March 12, 2019, 11:23:11 AM
Cryptocurrency market is highly volatile because of the low capitalization if to compare with traditional markets, so any news can have a big influence on prices.
member
Activity: 364
Merit: 10
March 12, 2019, 10:32:36 AM
I think the reason why the crypto market is volatile is that the number of people demanding the tokens is more than the tokens itself. The tokens are limited and more people are using it. Also, the prices arent stable. There's the nature of pump and dump which have effect on the market.
legendary
Activity: 2926
Merit: 1130
Leading Crypto Sports Betting & Casino Platform
March 12, 2019, 10:12:06 AM
Hey, I have some moderate experience over this crypto world. Why the market is extensively volatile. Alike traditional market does crypto too impacted of many major changes.


Maybe because cryptocurrency is not just an investment but has a major role which is a currency. With this there are a lot factors to consider. Maybe its because of the demand and supply since crypto are just mined and the source is limitted. Its also maybe because of the manipulators etc. You can see a lot of topics like that here.
This is right mate, aside the fact that the technology I new which is not completely new for a technology that is already counting almost 11 years in the market.

So many bad ICOs as you said are really contributing to why prices are not stable because of the motive behind their project which makes a lot of people go in and out of the market without leaving their funds for a long term project, the market would have been less volatile if there was assurance or a form of security from the ICOs, then people can leave their money in the market as a long term project without having to pull it out often.
full member
Activity: 476
Merit: 100
March 12, 2019, 09:23:08 AM
Hey, I have some moderate experience over this crypto world. Why the market is extensively volatile. Alike traditional market does crypto too impacted of many major changes.


Because most of those altcoins are just a speculative asset. If only that most of them are utility tokens then it would not be this very volatile but the truth is only a very few them are on that category. And adding also the influence of whales, pump and dump groups or some government trying to obliterate this whole industry.
copper member
Activity: 287
Merit: 1
March 12, 2019, 08:19:09 AM
Hey, I have some moderate experience over this crypto world. Why the market is extensively volatile. Alike traditional market does crypto too impacted of many major changes.
The cryptocurrency is volatile because the reason of this is the use case of the coin, and who needs it and how many supply is there. Therefore, if there are lots of people who wants it (demand) and there are only limited number of token (supply) the tendency is that the price would go up and vice versa.
sr. member
Activity: 1484
Merit: 253
March 12, 2019, 08:04:32 AM
Traditional market is not regulated or decentralized while crypto market is totally decentralized and out of regulations. Besides, sometimes manipulation can also affect the price.

Do you really believe that crypto market is totally decentralized? It can be easely regulated by governments\large corps because of enough smal capitalization.
It can't be regulated by standart methods but the using that like huge hashing power can strongly affect on crypto market. So some person\company\government with many resources can regulate it
Cryptocurrency has no intrinsic value, despite company's sized valuations, cryptocurrencies don’t sell a product or earn revenue. Regulation is still in its early days. Such limited regulation allows for market manipulation, introduces volatility, and discourages investment, due to no assurances that their capital is truly secured or protected. However, I'm still hopeful that in the long run, we can expect more regulation and a greater diversity of investors.
sr. member
Activity: 812
Merit: 250
March 12, 2019, 04:48:47 AM
Crypto currency is not controlled by anyone, not guarded by anyone, all of them have the right to drop prices or pump prices according to the supply they have. the more capital they have, the easier it will be to influence prices in the market. therefore the price volatility of the crypto currency is very high.
hero member
Activity: 2366
Merit: 504
March 12, 2019, 04:37:31 AM
Traditional market is not regulated or decentralized while crypto market is totally decentralized and out of regulations. Besides, sometimes manipulation can also affect the price.

Do you really believe that crypto market is totally decentralized? It can be easely regulated by governments\large corps because of enough smal capitalization.
It can't be regulated by standart methods but the using that like huge hashing power can strongly affect on crypto market. So some person\company\government with many resources can regulate it
It's not totally decentralized. But we know that any consensus has its pros and cons, we are still pegged with the centralized exchange and that has become the main problem in the crypto space. Crypto is not decentralized at all.
member
Activity: 952
Merit: 41
March 12, 2019, 04:33:15 AM
Just a few large amount of assets like 20 BTC can actually manipulate the market and twist things around i think the market is still growing up and things like FOMO can have serious impact on the agile market if you ask me
20 BTC is not enough to create a flow of market shift in my humble opinion. For old days it was possible to manipulate the market with small amounts but this is not the case for 2019.
You are there before the market can be manipulated you need huge amount of deposits and not just small amount, despite the fact that the reason for the volatility is due to the fact that the market is base on the economic law of demands and supply and that does not mean just small demands for bitcoin can change the face of the market.
hero member
Activity: 1358
Merit: 509
March 12, 2019, 04:26:09 AM
Probably due to low marketcap of whole crypto industry, it's easy to manipulate such low volume market when you have money (there is also media manipulation).
You may be right but bitcoin has a large capitalization and trading volumes. All the market follows the bitcoin. Perhaps you think that for the entire world market bitcoin has a small trading volume in the cryptocurrency market ?
Bitcoin's volume is unquestionable but specifications of bitcoin cannot be a reason to alternative cryptos. Volumes are mainly created by automated bots that have the ability to pump the real number on our display.
jr. member
Activity: 238
Merit: 1
https://www.empirehotels.io
March 12, 2019, 04:19:44 AM
Probably due to low marketcap of whole crypto industry, it's easy to manipulate such low volume market when you have money (there is also media manipulation).
You may be right but bitcoin has a large capitalization and trading volumes. All the market follows the bitcoin. Perhaps you think that for the entire world market bitcoin has a small trading volume in the cryptocurrency market ?
legendary
Activity: 1890
Merit: 1003
March 12, 2019, 03:56:43 AM
Just a few large amount of assets like 20 BTC can actually manipulate the market and twist things around i think the market is still growing up and things like FOMO can have serious impact on the agile market if you ask me
20 BTC is not enough to create a flow of market shift in my humble opinion. For old days it was possible to manipulate the market with small amounts but this is not the case for 2019.
member
Activity: 336
Merit: 10
March 12, 2019, 03:52:36 AM
Traditional market is not regulated or decentralized while crypto market is totally decentralized and out of regulations. Besides, sometimes manipulation can also affect the price.
Yes, because Bitcoin is not centralized, so people who trade will easily sell and buy at any time, so prices will move quickly on the market. So we must be careful if we want to invest in Bitcoin.
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