Why is Bitcoin so volatile?

[Mortyj 122]

Bitcoin is so volatile due to its dominance, BTC dominance is above 60% now thats why all peoples are holding bitcoin, thats why it is volatile and moving very fastly.

[ReyFG 65]

BTC is volatile because it depends on the supply and demand of the market. In addition, this cryptocurrency runs its course naturally, it flows by itself. There may be times when investors invest a lot or a little money. Remember that if the price goes down then there will be a lot of demand and users will start buying, but when it goes up it will have significant value. Financial indices play a very important role and this cryptocurrency competes with traditional financial markets.

[Ayelet 81]

If you invest as a holder, any time is good to buy. If you invest in swing or intraday, a study and risk management must be done when trading with BTC or any cryptoactive

[bodyhamza 21]

إنه سؤال كان يحيرني وأريد حقًا معرفة الإجابة التي
أهتم بها في هذا الموضوع

[Alexánder Morffe 235]

What you have to really understand is that the cryptocurrency market is very dynamic, it is like that by nature, I had the opportunity to see the rallies of Bitcoin from my first account in Yobit, it seemed somewhat complex at the time, but simply its rebound It was due to the great confidence it had generated globally, and today we see a consolidated Bitcoin, setting trends in the market, it is normal for it to go down or up, especially when it is above 10,000 USD it is somewhat unstable and tends to fall However, it has remained above that price in recent weeks.

[muffix123 2]

because there are many buyers and sellers. All these people are trying to profit from this market. Of course there will be fluctuations.

[Jeoani 84]

Well, for my part, I read a report a few days ago confirming that Bitcoin was affected by the American stock market, specifically the paper market.
The report also talked about Bitcoin being affected by the political situation in America.
The report predicted that Bitcoin will not increase in price until political conditions in America are ripe.
It was just a report I read on Google.
Always read the analyzes and forecasts.

[ehnegociosonline 24]

Bitcoin's price volatility is primarily a consequence of its youth. ... Its money supply is capped at 21 million bitcoins, of which 17,783,800 have already been issued. This means that most cryptocurrencies are still concentrated in a few hands.

[ahmed bika 18]

There are several factors that contribute to the volatility of Bitcoin on the financial markets. Negative Press: There have been major news events around this particular cryptocurrency which in effect scare investors and traders and ultimately have led to major rallies.

[Joli72 18]

Understanding why bitcoin is volatile is very important to potential users. They shouldn't shy away from using bitcoin because payment processors like OpenNode eliminate the risk of using exchange houses. This allows immediate participation in the Bitcoin ecosystem without drastic changes in profits in terms of local currency.

[josbaq 46]

There are many technical elements that influence the volatility of bitcoin, which need to be studied further, for example one can be the bad news about the adoption and price of bitcoin, another is the uncertainty that investors have about the future value of bitcoin, just to mention a few, because there are several factors that come into play.

[Pusha 28]

High volatility applies not only to bitcoin it is generally the main and main characteristic of the entire crypto market.Yes, of course, if you compare bitcoin and other coins, it will certainly increase volatility, since this is due to the popularity and volume of the coin.

[talattabi06 2]

In my opinion, the biggest reason for volatility is that the market is much smaller. Order sizes in the price levels are very small yet. Even the stock markets have high volatility, but they have an automatic market closing feature. Trade stops automatically at 10% change.
 

[Humberto Alvarez 11]

Building a dinamically linked executable was almost straightforward (didn't have time to check if it actually works), however I was unable to get a statically linked executable (lots of undefined references from ld) after compiling static qt libs. Need to investigate further.
I will update the first post with the required steps in the next few days.
 

[jonasma 68]

I think it is very volatile because the bitcoin market is relatively new and its massive adoption has not yet arrived, for this reason it is very easy to manipulate by whales and by centralized exchanges, in a couple of years we can see that bitcoin can be more stable when globally it is more accepted. Everyone will want to have a fraction of bitcoin but when that time comes it will be very difficult to get it.

[alexandra fernandez 44]

On 10/7/2019 at 10:43 PM, Art said:

I'm still trying to understand why Btc is so volatile. There is so much noise in the crypto-world, telling me that it's time for Btc to rise. But each time it kept going down. What's the art in deciding when it's the best time to invest in Btc.

As you can see, according to a report, at the end of 2017, about 95% of the total bitcoins in the world were owned by only 4% of Bitcoin users. This means that a single person can decide to release large amounts of Bitcoin on the market at any time, in order to fully increase its value. Another aspect that can lead to a drastic change in the price of Bitcoin is the intervention of the world's most recognized financial institutions. For example, when one of the most important banks in South Korea tested the Blockchain technology for its internal processes, this generated an increase in the value of Bitcoin. When China decided to ban Initial Currency Offers (ICOs), Bitcoin fell sharply, as did South Korea's recent regulatory announcements against cryptomoney trading platforms.

[luthfi_2a 110]

The reason is simple. It takes a (relatively) small amount of money to move a CC. A few billion is enough to rock the markets. This is a traders dream.

It will be regulated as a security just like stocks. For example, they can suspend trading on a certain coin if it plummets. They can delist a coin. They can allow only certain coins on the markets before investing starts etc…

You have to keep in mind how tiny the market is right now ( around 200 billion). The total cap for the US stock market is 30 Trillion! If you do the math crypto is not even one percent of the US stock market.

So there are different dynamics at work. Making money in cryptos is a little more knowledge based as well. This keeps even more people at bay.

The key is simplicity. If you want to start, start small and just put money into bitcoin. Then on to the next coin….

[Daramola Abiodun T 60]

My believe is that any asset that draws the attention of traders like bitcoin will be volatile. The volatility there is as a result of huge volume of daily trading. It accounted for the majority of daily trading crypto. Millions trade it around the world every day.

[mahmoud atef 4]

As it has money people that come around from all over the world so it must increase in value

[memunis 79]

Because people tend to invest in USDT nowadays.

[sofiaqq 25]

People see bitcoin like a gold of this century, and buy a lot of bitcoin in one day or sell a lot in one day, and tis create volatile.

[Artugul78 91]

Bitcoin like a gold... It is very valuable coin..its market very high. Now days has many significant in the bitcoin market... So bitcoin is so volatile.    

[CarlDash 49]

On 7/10/2019 at 22:43, Art said:

I'm still trying to understand why Btc is so volatile. There is so much noise in the crypto-world, telling me that it's time for Btc to rise. But each time it kept going down. What's the art in deciding when it's the best time to invest in Btc.

 

I'm not an expert on the subject, but from what I understand bitcoin is volatile because of the use and commercial movements it has, it's all about supply and demand.
 

When there are many demands and few offers, its price goes up.

When there are many offers and few demands, its price goes down.

The art of predicting your next movements can be deduced by patterns, in order to profit from your volatility 

Edited October 19, 2020 by CarlDash
Spelling error

[alexandra fernandez 44]

This is why bitcoin is so volatile, because most bitcoins in the world belong to a small group of people. At the end of 2017, 95% of the kryptonet was owned by only 4% of the people who have Bitcoin, according to research. That means that a single person could decide to release large amounts of Bitcoin onto the market at any time, completely destabilizing its value. The price of Bitcoin can also change drastically as countries and financial institutions adapt to the idea of crypto currencies. For example, when South Korea's largest banks tested the technology, its value increased. On the other hand, when China announced its plans to take action against ICOs (a crowdfunding or collective financing based on crypto-currency) without complete information, its value decreased. The same thing happened when a South Korean government official said the country could ban cryptomonies completely.

[SuperCrypto 7193]

Bitcoin price fluctuation is one of its most important features, through which we can profit from trading this precious cryptocurrency. And given that Bitcoin is an emerging technology that has never been seen before, news and rumors about it can be a big reason for price volatility.