Can you please some hidden and secret reasons behind the price of bitcoin volatility? I am just wondering, what reason there could be beside demand and supply thing. Please explain with your logic.
why is bitcoin prices so unstable? This is because the bitcoin price fluctuations in various international and local bitcoin markets such as coinbase, bitstamp, kraken, btc china, bitcoin.co.id and others are driven by many factors. such as volatility in bitcoin markets that do not yet have an accepted index generally, since cryptocurrency as an asset class is still in its nascent stage. however, bitcoin is able to experience volatility in the form of a 10-fold price change against the US dollar currency with such short time changes 
Topic: Why price of Bitcoin is so volatility? (Read 177 times)
Different users,traders and investors are here so because of that price of bitcoin are so volatile,think if me buy btc in low price then i sell it in high price and some users buy btc then they sell it in low of course it has impact in the value of btc,think also if some business like wallet do sell high btc in their wallet of course it has impact in the price this are more on buy and sell so that's crypto
I think that this is due to the mood in society. Few people really understand why jumps occur and 80% of people are simply afraid to lose their money, that's why they sell in those moments when "big uncles" are buying.
The volatility of bitcoin is caused by institutional investors and mainstream investors, who sell and but at given times. Now whenever there's negative news, the mainstream investors with weak hands start selling out and the price decreases. And then there's the whales who manipulate the price deliberately. All this causes the volatility and that's what traders like so much.
I will try to explain it by giving some facts.
Suppose there are 1 million bitcoins in the world (just an assumption, although in reality they are way more).
Now, one particular person owns the half of it (500 thousand), while the remaining population owns the other half.
Every day, the other population buys and sells bitcoins, which leads to slight variations in the market. Fair enough, that's how market should be.
Now, when this guy (who owns half of the total supply) wants to make some money, he begins selling his coins (called dumping).
Suppose he bought those coins at 1$, and the rate today is 100$, he will sell all his coins for 100$.
Now this leads to a fall in the price and creates a panic in the market. Looking at this, the remaining population also starts selling their coins at loss in order to exit the market.
This creates the fluctuation in market.
Suppose there are 1 million bitcoins in the world (just an assumption, although in reality they are way more).
Now, one particular person owns the half of it (500 thousand), while the remaining population owns the other half.
Every day, the other population buys and sells bitcoins, which leads to slight variations in the market. Fair enough, that's how market should be.
Now, when this guy (who owns half of the total supply) wants to make some money, he begins selling his coins (called dumping).
Suppose he bought those coins at 1$, and the rate today is 100$, he will sell all his coins for 100$.
Now this leads to a fall in the price and creates a panic in the market. Looking at this, the remaining population also starts selling their coins at loss in order to exit the market.
This creates the fluctuation in market.
As for me, news of all kinds influence Bitcoin market tremendously. Both positive and negative news as well as the manipulations in the market introduced by big players are perfect tools to operate with public opinion = demand in BTC that is one of the turtles Bitcoin is grounded on.
Because current market cap is very small, whales or large traders can swing the order book easily. This is similar to penny stock that can move in large percentage compared to blue chip stocks. Also, since crypto exchanges are largely unregulated, it is relatively to manipulate the market by big players or even by the exchange itself. As we become more mature with better regulatory approach, this new asset class will start to be more "stabilized".
where does the price come from? exchanges
so we go look at exchanges and see how the situation with them are. when we do, we can see that these exchanges are not as big as they should be. for example the order books are not so filled with orders and as a result selling or buying a small amount can make a bigger change in the price than it should under normal circumstances.
that is only one reason for it. the other reason is because the demand for bitcoin changes wildly. for example you can see last year during November and December there was a big surge of new users to exchanges buying bitcoin as fast as they could then the same thing happened in opposite direction during January when they dumped bitcoin as fast as they could.
so we go look at exchanges and see how the situation with them are. when we do, we can see that these exchanges are not as big as they should be. for example the order books are not so filled with orders and as a result selling or buying a small amount can make a bigger change in the price than it should under normal circumstances.
that is only one reason for it. the other reason is because the demand for bitcoin changes wildly. for example you can see last year during November and December there was a big surge of new users to exchanges buying bitcoin as fast as they could then the same thing happened in opposite direction during January when they dumped bitcoin as fast as they could.
Can you please some hidden and secret reasons behind the price of bitcoin volatility? I am just wondering, what reason there could be beside demand and supply thing. Please explain with your logic.
The most striking aspect of Bitcoin Economics is the uncertainty of its supply and the vagaries of demand - the speed with which bitcoin is mined is highly predictable, almost unlike any other asset (currency or commodity) Its final supply is a known quantity that has been set beforehand and will never have more than 21 million bitcoin. This feature makes bitcoin a perfectly inelastic supply of almost "perfect inelasticity." That no matter how high the price, miners will not produce more than 21 million. And price increases do not necessarily lead to faster digging of bitcoin. Supply of inelastic goods responds more to changes in demand than flexible projects. ....
Can you please some hidden and secret reasons behind the price of bitcoin volatility? I am just wondering, what reason there could be beside demand and supply thing. Please explain with your logic.
I don't see any other hidden and secret reason behind the price of bitcoin volatility, it is pure demand and supply of bitcoin, almost all of people know about the bitcoin and what's this is for, some people considers it is currency and the other it is digital asset, the people know that the amount of bitcoin is just 21 millions around the world, so demand and supply creates the volatility in bitcoin. 
Can you please some hidden and secret reasons behind the price of bitcoin volatility? I am just wondering, what reason there could be beside demand and supply thing. Please explain with your logic.
The greater volatility of bitcoin is explained by the lack of its security and regulation, and also by the fact that its price depends almost exclusively on the supply-demand ratio, which are constantly changing. The level of demand is greatly influenced by external factors, such as the general state of the crypto-currency market and especially various news that can influence this market.
In addition to the main factor - demand-supply - Bitcoin's course is also affected by the following signs.
1. Legislative regulation - in countries that have given "green light" to the crypto-currencies, there will be a revival of the market, while in countries that introduced various kinds of restrictions - its decline.
2. The influx of new players to the market is facilitated by the development of infrastructure: BTC-exchanges, crypto-currency exchangers, cryptomats, etc.
3. Positive or negative information about Bitcoin is an important factor in deciding whether to purchase or sell a crypto currency.
1. Legislative regulation - in countries that have given "green light" to the crypto-currencies, there will be a revival of the market, while in countries that introduced various kinds of restrictions - its decline.
2. The influx of new players to the market is facilitated by the development of infrastructure: BTC-exchanges, crypto-currency exchangers, cryptomats, etc.
3. Positive or negative information about Bitcoin is an important factor in deciding whether to purchase or sell a crypto currency.
sale and purchase of bitcoin it affects to volatility. the logic is like a commodity sold in the market, then its value will affect the volatility and the price becomes more expensive.
the meaning, that bitcoin volatility is very sensitive, like china that makes the volatility of bitcoin to fall.
the meaning, that bitcoin volatility is very sensitive, like china that makes the volatility of bitcoin to fall.
Can you please some hidden and secret reasons behind the price of bitcoin volatility? I am just wondering, what reason there could be beside demand and supply thing. Please explain with your logic.
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