Topic: Why is Bitcoin always affected - page 6. (Read 933 times)

Bitcoin is a digital currency that gains value over the trust people have in it. The more trust people will have in BTC the more money they will put in BTC which will increase the BTC.D (BTC dominance) and result in an increment in BTC price. So now I hope you may understand what is behind the BTC price that impacts it. There is a number of factors like News Cycle, and Fuds, you have to keep an eye on all the fundamental and technical signals. But one factor among all those is common which is People's Trust. Once it is dropped by any factor or increased by any factor you will see high spikes in BTC price candles. Why?

Because trust is what drives the price of BTC. Now coming back to your query about how BTC could be impacted by Economic situations, I must say you should ask a question first as a prerequisite, which is; how do people react to economic events and vice versa? If you (people) see an economic event that is good for the market they will trust it more and boom prices are high again. And if any economic event is found bad for the market by users then trust will also crumble resulting in a Downfall of the BTC price. This is the simplest explanation to your query not doubt the factors of economic effectiveness on BTC's price are numerous but I tried to mention the common one which (factor) is driven by all the other factors.

Talkin about SVB people started to withdraw their assets from the bank once they saw the liquidation conditions of it. This news and information act as a factor that plays with the trust people have in SVB that affects all the other markets. I made a post about how the bank's downturn affects BTC price this could also help you. (Note* this hyperlink post is not about all the banks but logics is same)

actually it's not only bitcoin that is affected, but other sectors are also affected, you say why bitcoin is always involved, because many people have put money there, so when good/bad news comes, the price will immediately fluctuate.

Strictly speaking, many people exaggerate about bitcoin, but they don't know that bitcoin has no utility other than being a speculative asset. A tool used by sharks to create a money game where people take money from each other, but people are thinking bitcoin is creating value for society, lifting the poor out of poverty. It would be foolish to invest without diversifying, and even more foolish to think that bitcoin is something that will yield returns without risk and invest it all.

Bitcoin has a risk-free, fair approach to control.  Over time, the greater the importance and awareness of people towards bitcoin, the greater the belief in decentralized autonomy.  That is exactly how bitcoin affects every aspect of the economy.  Do you put your absolute trust in bitcoin or will you choose to take risks where you cannot be proactive and controllable?  I think that's also part of what drives bitcoin's influence and value.

Bitcoin's value is often tied to its perceived utility and adoption as a payment method or store of value. Economic news and events that impact the wider financial system, such as changes in monetary policy, currency devaluations, or financial crises, can also have a ripple effect on the adoption and usage of Bitcoin. and the main reason is because it is a popular alternative asset for investors looking to diversify their portfolios.

Bitcoin even today is still something very interesting and fantastic for our circles but for the world bitcoin is not that big. Now we can be said to be still in the form of development so obviously this will be greatly affected by the economy. but on the other hand at this time it is actually not only about bitcoin or crypto but obviously all types of investments that have value in them will definitely be affected by the economy and this is something that will definitely happen.
But in this case we can conclude that actually the positive side is that when the world economy starts to improve this will also clearly affect bitcoin to improve again.

Very interesting.  In my opinion, The main reason why Bitcoin is so often affected by economic news is because it is still a relatively new and volatile asset. As a result, investors and traders may be more sensitive and reactive to news and events that can affect their value. Additionally, Bitcoin and other cryptocurrencies are often viewed as alternative investments, meaning they may be more susceptible to market swings and shifts in investor sentiment.

In the case of issues with US banks like SVB, there could be several reasons why this could impact the Bitcoin market. For example, if a bank stops providing services to cryptocurrency exchanges or companies, this could limit investors' ability to buy and sell Bitcoin, which could impact its price. In addition, news about regulatory crackdowns or other negative developments in the cryptocurrency industry can also affect the value of Bitcoin, as investors may become more cautious or unsure about the future of the asset.

Before, it wasn't like that. Whenever there's some news about economy related topics that were definitely bad news, it doesn't affect bitcoin a lot. But the dynamic changes, market changes and fundamentals have been greatly increasing for bitcoin. So, having this question play on your mind isn't really dumb at all. We're all wanting to know why it's like that and you'll get various possible good answers from here. Since there have been a lot of change in the market, adoption have increased and that's why having this question is also the same like thinking why every economic news affects the global markets. Let's think that, all investors and traders do follow the news because it is the market mover every time there will be a news release coming from FED or any bank that's in closure or collapse or anything related to them.

I think because bitcoin is a commodity too so it causes an effect for that, when the bank goes into disruption, people start to get scared and take all their money and then invest it in other sectors like crypto or something so there's a big transfer of funds then then the crypto market going up, investors will always be looking for a better place at that point.

There are recessions, bank related problems as well economic issue in USA now that affects not only the US investors in stock but also any money related organizations. It is natural for the people to react also in their Bitcoin investments since some make trading crypto as their living income and uses it in their spending. That's why we need to diversify our investment and not only save in bank, stocks or crypto but to have multiple investment and sources so when problem occurs we have still some at saved.

I would guess that there isn't really that much of a "value" in other things that you named neither, by logic we put  value behind them and that's the issue .Gold has a value? What kind of value does gold really have, how much of it is used for something important and needed?

Sure it is "used" in some stuff outside of jewellery but so rarely, which means that traders are the ones that decide it. Hell most stocks are like that as well, we could all sell our stocks and it would crash and most likely even bankrupt the company if we did that, which is an issue. On the other hand, we are talking about a situation where bitcoin is not really different from any of them.

Bitcoin makes good hopes for the future, today there was an increase of more than 7% and now the price position is more than $ 26k, I believe that slowly the price will recover and of course we can get big profits, this is because at this time I make bitcoin as an investment first choice.

Bitcoin continues to shine and this week has gone up more than 33%, of course this is a strong indication that this year the market can rise again, it's not wrong if many people believe ATH will occur in the range of $ 80k, it's time to keep buying and never sell again especially at a low price and loss.

Why is your account Archived, I'm seeing that in your profile and this is my first time seeing that status on a bitcointalk account profile. Back to your question, my friend, you see SVB is one of the oldest Crypto banks in the crypto space according to CoinDesk, and it's custody to other crypto custody like USDC, PAXOS, and some crypto exchanges. If you remember when UST collapsed last year due to deppeg, which affects other protocols and Lock bitcoin (wrapped and unwrapped), a similar thing happened to USDC, the SVB bank became insolvent and unfortunately, USDC had about $3-4B trapped in the bank and people hold USDC panic and start selling USDT to mitigate loss and not repeat what happened to UST occur again but fortunately, USDC covered the loss and burn some USDC with their reserve and everything becomes normal again and that's the reason you see Bitcoin was dumping.

Of course all news will affect Bitcoin's performance because Bitcoin users are globally, but the percentage of influence certainly depends on the community in the country, USA users are certainly very large so that anything related to the news in the USA will affect Bitcoin, the last of course when there is bankruptcy FTX who brought a big shock in the market

The answer is on the surface: bitcoin has no real value, it is a purely speculative asset, and almost anything can influence its value. And influence both in the direction of growth and decline. And we do not take into account the influence of real market manipulators This is an ordinary market effect - if an asset has no real security, a cost price close to zero, wild volatility ... Therefore, for now, its purpose is sometimes to play the role of a high-risk investment instrument, but storing your assets in it is stupidity. At least devirsification, into fiat, gold, ... and some part in cryptocurrencies

It is normal, many people who invest in properties through stock or real estate can get panicked, they react to bad news, they can get panic because they don't want to see their money lose some large percentage, it's the same with crypto investment, and once they start pulling out their capital the stock value or crypto value will be affected.

In my Opinion One reason why Bitcoin is affected by economic news is that it is often seen as a speculative investment, with many investors buying and selling based on market sentiment and news events. As such, any news that affects overall market sentiment, such as changes in interest rates, government policies, or major geopolitical events, can have a ripple effect on the Bitcoin market.
In the case of the SVB issue, the news may have caused investors to become concerned about the regulatory environment surrounding Bitcoin and other cryptocurrencies. This could lead to a sell-off as investors become more risk-averse, or it could cause increased volatility as investors try to gauge the potential impact of the news.

The fact that we are looking at its daily price, and such a future has one side in trouble is going to be difficult. And there is no difference here, BTC has a small part in the economic market. And if it doesn't react to information like this then I find it unusual.
Anyway BTC should be one of the financial portfolios, see the reaction of gold, oil, ... are reacting.

do you think Bitcoin is the only reason why the economy has been affected according to the news? I think you are wrong in your opinion on that dude.

In addition, even before the SVB was closed, bitcoin's market value was already up and down. I doubt that's because of the svb dude. There are many reasons why that happens, you should know that.