Why is Bitcoin so volatile?

[fmtutun 1]

demand and supply are most powerfull thing at BTC price. And also it efeccted by the total amount of btc. 

Other side of the crypto are about the speculations, hacker attacks, goverment issues etch. Thesse all efect to people and demand/supply.

[ayoayo 935]

Firstly, it's still mineable coin and there are big amount of coins not mined. Secondly, don't forget if you ask people about cryptocurrencies they will answer that they heard about bitcoin. Every year new people involved in trading, therefore price is rising(falling) highly comparing to actual currencies like usd, e.t.c

[Nafiaaaa79 111]

Bitcoin is just a small boat in the big ocean of assets. As a trader,everyone should wait for the write time to trade or invest in crypto instead of waiting for the right time after the experts say it's is high time to rise.

[rafa31x 198]

On 10/7/2019 at 9:43 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.

One of the aspects that can generate a drastic change in the price of Bitcoin is the intervention of the most recognized financial institutions in the world. With Bitcoin there are no market hours. Instead, you get an uninterrupted level of trading 24 hours a day, 365 days a year, which means even more fluctuations in its value and less stability every day.

[Gans95 19]

Bitcoin is unstable because Bitcoin is not regulated or controlled by the laws of any country, so the price of a Bitcoin coin is determined by people, because of this, price changes happen very quickly.

Edited October 2, 2020 by Gans95

[arkadio666 11]

Because it is the first cryptocurrency in the human universe and the first asset of this type, I invest when I can and I am a good advisor in this cryptocurrency, the problem is the DeFi that are new and the protocols are more complicated.

[Xavier93 3]

Here are only a couple of reasons behind the price of bitcoin:

Bad News Hurts Adoption Rate. News incidents that concern bitcoin users include geopolitical developments and claim that governments will control Bitcoin.

Bitcoin's Perceived Value Sways. One explanation of the perceived store of value vs. the fiat currency will fluctuate among fiat currencies is. Bitcoin has gold-like properties to it. It is regulated by the core technology developers' design decision to restrict their development to a fixed quantity of BTC 21 million. 

Uncertainty Of Future Bitcoin's Value. The instability of Bitcoin renders it a somewhat uncertain value market, but it guarantees a potentially frictionless transfer of value. Consequently, we see that the value of bitcoin will change as much as we see for fiat currencies, based on news events.

Security Breaches Cause Volatility. Bitcoin can also become unreliable when the Bitcoin community discovers security vulnerabilities to create significant open source solutions in the form of safety fixes. 

 

Good luck and have a nice day

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[rodrigozepol 94]

On 6/7/2020 at 10:50 AM, Raqeebzy said:

Speculations generally is what affected the demand and supply cycle of the bitcoin market which in turn affects the price and make it so much unstable. Manipulations, Governmental policies, the press which affects the public view and blockchain events have so much impact too.

It is an election year in many large economy countries in the world, I also believe that the proximity of having an effective vaccine also makes bitcoin retract its value, but in the long run its usefulness and the effective resolution of economic and financial problems will prevail. traditional coins never solved. Greetings.

[kengman 34]

The market in the upcoming dynamic season will be quite volatile, most investors will be less active by the end of this year. In traditional finance, we have also seen many times that at a certain moment of extreme volatility, a series of liquidation effects will cause primary liquidation to lead to another type of liquidation. 

[kenzi 509]

I don't buy that argument that Bitcoin is volatile because it has no intrinsic value to be backed upon. Nothing is backed by anything substantive! Fiat is backed by the monopoly power of the state, gold is backed by the social capital given to it. If Bitcoin's lack of physical asset backing was a problem, all currencies would be volatile.

[bladexx 63]

One reason why Bitcoin can fluctuate significantly against trust currencies is that it's perceived as a reserve of value against traditional, government-backed currencies. Bitcoin has properties that make it similar to gold.

[Raqeebzy 6456]

On 10/4/2020 at 8:30 AM, rodrigozepol said:

It is an election year in many large economy countries in the world, I also believe that the proximity of having an effective vaccine also makes bitcoin retract its value, but in the long run its usefulness and the effective resolution of economic and financial problems will prevail. traditional coins never solved. Greetings.

The question is actually "Why is bitcoin so volatile". Election, Vaccine hunting, I don't know how that affects the volatility or the price of BTC. Can you explain what you mean and educate me more?

[gaisini2 34]

It seems to me that bitcoin is volatile due to the fact that there is still an influx and outflow of users of the coin. When the coin distribution ends, there will be either a sharp explosion in value or a sharp decrease in volatility .

[chinox2020 11]

The fluctuation of supply and demand causes volatility in Bitcoin in addition to the variability is that btc concentrates more on large players manipulating the field. The second reason why such manipulation of the exchange rate is taking place is that this market is not controlled.

[Javier5678 48]

All this is solely about the interest of the market, bitcoin is volatile because the offers still continue, many enter the space to get rich quick but they end up leaving it just because they do not know how to do the process well and over time making bitcoin will continue to be even more. difficult

[Mosin 444]

at the moment, the amount of bitcoin is growing and many people are buying and selling it, and do not forget that each cryptocurrency changes its price depending on the offers, unless of course it is digital fiat

[SergePhobia 94]

On 13.11.2019 at 10:59, niroblm said:

Supply distribution of bitcoin is still running so that bitcoin price is so volatile and I think it is the right time to buy bitcoin in future bitcoin price will go high

For me the volatility of bitcoin depends mainly on its demand, well obviously. And its demand is controlled by many factors. First is the FUD's that are spreading all over the internet. Second is the banning of bitcoin of certain countries that may lead and/or leads to a very low price. Third, are the whales. Bitcoin has the highest population among all cryptocurrencies but it does not mean its population is big. The population of bitcoin users is quite low that is why the price is easy to control and easy to fluctuate.

[Parviz23 26]

It is not direct causes of political events that occur that fluctuate the price, but rather a subjective response (or responses) on that particular event, which happens to attracts a lot of attention by making a prediction of the expected value of crypto within that response.

[hatem70 20]

The reason for the fluctuation of the Bitcoin price, up and down, there are several factors such as supply and demand, and the impact of the price of bitcoin by the political, social, economic and security situation, like any commodity that is bought and sold. On the contrary

[wiliamblacke 157]

The volatility of its price can be due to several factors such as: events or news, price value vs fiat currencies, forks, Whales, Liquidity and market size among others, but I suppose these would be the main ones.

[Alpinist 19]

Bitcoin is very unpredictable currency. Its price can rise and fall to hundreds dollars in  few hours. I once saw, how Bitcoins price dumped from 8000 to 7000 usd. I boutgh Bitcoin with all my money. After some days BTC price falls to 6000 usd. 

[adidas21rus 37]

Bitcoin's lack of mandatory price stability and its fixed supply will continue to cause short-term volatility, while contributing to long-term price stability. This model is literally the opposite of the one followed by the Bank of England, the ECB, the fed and the Bank of Japan. And that's why bitcoin is antifragile: there are no subsidies to Troubled banks, and this market is free of moral hazard, which contributes to maximum accountability and long-term efficiency. Central banks manage currencies to dampen short-term volatility, which creates instability leading to long-term volatility. Bitcoin volatility is a natural function of monetary acceptance, and this volatility ultimately strengthens the resilience of the Bitcoin network, contributing to long – term stability. Variation is information.

[Ernesto9191 37]

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.

[Hasan211 65]

One of the biggest drivers of volatility in the cryptocurrency market is speculation. Many investors are constantly trying to guess the up and down swings of the cryptocurrency market. These speculative bets cause even more volatility in an already choppy market.

One reason why bitcoin may fluctuate against fiat currencies is the perceived store of value versus the fiat currency. Bitcoin has properties that make it similar to gold. It is governed by a design decision by the developers of the core technology to limit its production to a fixed quantity of 21 million BTC.

[chinox2020 11]

Bitcoin is volatile because the supply distribution is still going on, besides that is the nature of bitcoin, you don't need to understand why bitcoin is volatile. Just go with the trend and get good profits.