Topic: Why is Bitcoin's daily price fluctuations getting smaller and smaller? (Read 2111 times)

Everyone has their own interests, smart HODLer should understand this and see this as normal, especially in Bitcoin. Indeed there are many new people but let it be a very valuable lesson for them, if they return to the market, they are individuals with better mental and knowledge as well.

However, it can be argued that changes in the market for cryptocurrency or Bitcoin are relatively loose. The year 2018 is the difference that many people have to worry.

Whether small or big, people will always complain about it, that’s the one thing about people here. It used to be small and when it got big last year everyone was complaining about it and saying that it needs a correction. So right now they have gotten what they need and the price fluctuation is now small, then why still talk about it? Let’s just say that the market is going normal now, but there will be a Bull market, though it won’t be anytime soon.

I didn't get the point of fluctuation going smaller and smaller day by day? does he mean the price of bitcoin is gradually decreasing or increasing well, maybe the movement of price of bitcoin is because of great stable or fair percentage of buy and sell. Bitcoin is volatile so fluctuation is normal, no need to worry about high or low price of bitcoin as long as it won't back to its starting price.

Volatiltiy in any of the available assets is a direct function of the number of people trading in that asset. Let me dive deeper to answer your query.
We operate in an inefficient market that is driven by the forces of Supply and Demand. Any asset in an auction (exchange) has two prices bid and ask.

It is the omnipresence of price difference that creates volatility in the price of any asset.
Let us face the fact that the Cryptocurrency adoption is still pretty low when compared to other assets. According to a report published in the Business Insider (link) the Net of the Capital Market is $294 Trillion. The equity market is approximately $69 Trillion and the rest is occupied by Debt securities (Govt, corporate, institutional etc). The cryptocurrency at $200 Billion is pretty small in comparison to it.

The main reason for reducing volatility in Bitcoin can be attributed to:
1) Higher number of Traders in Bitcoin (Compared to other cryptocurrency):
It is the constant struggle between buyers and sellers that leads to price discovery. A traditional market (Stock, commodity, bond etc) has such huge number of traders that churn the price by very small margins among themselves for arriving at a suitable rate. Cryptocurrencies don’t have that vast network of traders that can
Lower number of traders results in higher price fluctuations in cryptocurrencies. But Bitcoin has emerged as the frontrunner and has the highest rate of adoption when compared to other cryptos. As more and more people start trading Bitcoin the fluctuations in price is going get lower.

2) Higher engagement in Bitcoin by Institutional Investors:
Cryptocurrencies have a low absorption rate among the Institutional investors who for a variety of reasons find it immature and nascent to put their money. Though in the recent years, we have seen funds and institutional investors coming forward to create crypto specific funds but the number is still insignificant in terms of the money they control. Institutional investors take the long view of their assets and may be content to hold particular assets for years before they pan out. Institutional investors buying into a particular asset means relative stability in the price of that asset. In the past few months, we have seen many Bitcoin specific funds raising and investing money into Bitcoin which has brought stability in the price movement.

3) The Flag bearer Advantage
Bitcoin is the most widely regarded and popular cryptocurrency till date. It is still the most proven piece of Blockchain technology created. This lends extra stability as people also perceive Bitcoin to be much safer option when compared to other coins say EOS, NEM etc.
Let us face the fact that the Cryptocurrency adoption is still pretty low when compared to other assets. According to a report published in the Business Insider (link) the Net of the Capital Market is $294 Trillion. The equity market is approximately $69 Trillion and the rest is occupied by Debt securities (Govt, corporate, institutional etc). The cryptocurrency at $200 Billion is pretty small in comparison to it. As we move towards wider adoption of these assets (Cryptocurrency), the volatility is going to reduce.

I see no truth in this one. Who says its fluctuations is getting smaller and smaller? Opposite to this I believe that it is far greater than the previous month, year as you can see with the current timeline. The fluctuations have been worst this year because crypto all went up and down from the 12K USD ATH to 5K USD ATL!! Now you tell me where do I see anything smaller going on here? Whatever steps that are being taken by the crypto are all huge this time. Bitcoin's dependency is increasing on the news around us and thus it is making it fluctuate more as news that are coming out are worst one.

I don't know about that. I mean yes the movements are smaller but are more frequent. The movements of the coin is very much still volatile. I think it's more like a bear market effect plus the correction of the huge lrice spike that happened early this year. I just hope the movement of the price of Bitcoin becomes much smaller.

There are so many things that can affect the price of bitcoin, the bitcoin price and cryptocurrency market is fall in this year. It's betting smaller and smaller but I'm sure the bitcoin price will recovery soon. Maybe in the end of the year or maybe on the next year. I think to handle it by hold your bitcoins and wait until the price go up.

I think it has become very normal because this bitcoin price always has a price correction when the price has experienced a very high price increase, then the price of bitcoin will then make a correction and make the price go down, but you must be able to use that moment to buy bitcoin because not forever the price of bitcoin falls and not always the price of bitcoin is always high there will certainly be a movement of rising and falling prices.

In several months, cryptocurrency market surpressed by negatives news and fake news thats effecting on bitcoin daily volume. I think its just temporary because when market recovery bitcoin transaction volume will growing bigger and bigger

Cause more people start to hold bitcoin and its common things that bitcoin start to become more stable. I think bitcoin will gain value in few days before etf announcement, hope etf got approved.

that shows the market is stabilizing and we'll be good to go in some few days/weeks ahead. The expects and analysts have been saying off late that it seems the masive sell offs have gradually declined and though the swings are there (perhaps this is crypto), sell offs don't occur on the large scale. This is good for us. Let's hope for the best.

This means bitcoin is getting stable and stable. It makes it less volatile

Maybe the market is currently saturating, but I don't know for sure when this will end, maybe until there is news related to crypto. Good price stability for transactions, otherwise price volatility that gives investors and traders profit.

do not panic I think this is the period that must be passed by bitcoin, this is a pase where this price will attract investors to buy bitcoin in large amounts and automatically, tara ... the price of bitcoin will skyrocket at the end of the year

The price of bitcoin continuously bleed because there is no verification yet to the process of legalization with 5 crypto exchange in SEC. Due to the delaying process of ETF, market damages by the news. As we knew that btc and eth are handy, they are both affected of the news.

Of course if you look at and compare current prices with prices last year, of course the difference is still very big, but people certainly see prices from the beginning of the year, and we know that prices continue to smaller from the beginning of the year, of course this is a bad thing for all users. I hope this bear trend will end soon..

How exactly is the fluctuation of Bitcoin price getting smaller and smaller? Or do you mean to say that the price of Bitcoin is going down? 🤔Yes price has been going down, but the way I see it is different, I don’t think the price will go down below $6000. Six thousand dollars has always been the limit ever since this year.

Earlier this year when it was dropping, it got down to six thousand dollars ($6000) and then it started going back up. But there is still no problem if it goes down to five thousand dollars cause I’m very sure that price will still appreciate.

I also tell to the people that now bitcoin is getting smaller but if we see the previous years except 2017, then also bitcoin has a big number of dollar. We still have profit in bitcoin and also earn from it if we take it rightly.

Volatility of Bitcoin is not as great as it once was because many people have invested in it. It still has a recent $ 400 price increase and compared to over $ 3,000 in sales, the profit is negligible. It's possible that Bitcoin has come down sharply recently and people are not ready to go back to using Bitcoin to trade and that's not going to go down significantly.