Why is Bitcoin so volatile?

[nira09 115]

On 10/8/2019 at 9:43 AM, 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.

Because sometimes people sell their Bitcoin in large numbers with help Good news so people buy more, and use bad news so they can buy at lower prices.

[dmnqe07 365]

The bitcoin volatility index examines the standard deviation of daily returns for variety of assets, i guess bitcoin is significantly more volatile than commodity or tradional equity of market. 

And bitcoin is so volatile because of the decentralization of the trading platform, having data stored on computer around the globe, and having bitcoin trade at a different value on each exchange can cause wild swing's on its price.

[doriahailee 643]

Bitcoin or another cryptocurrency is always violatile because it depends on the basis and does not depend on clear fundamentals such as gold or real estate assets. Because it's full of speculators and it's also not centralized, that's what makes it volatile.

[Agios 1763]

On 10/8/2019 at 9:43 AM, 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.

The price of Bitcoin is so volatile because: Limited liquidity in the cryptocurrency market, price manipulation is rife in new markets / exchanges. The price of Bitcoin is very easily influenced by rumors. We know that if the price of bitcoin fluctuates, the greater the risk or profit we will get.

 

[Naga 1250]

On 11/8/2019 at 6:14 AM, theterle said:

Bitcоin соst is volatilе sееing that оf grеatеr spеculаtors сontributing fоr less timе and a few do no longer trust fоr a lоng tеrm.

No matter how much volatility bitcoins has I'll always buy and hodl because I know in the future the price will go up high specially after halving so if you lost faith in bitcoin thats your problem. 

[shanno4312 12]

Bitcoin is worthy in every single matter,and a really place to give trust.Nope just a waste of time reading,i wish i dont give such time reading this nonsense though i have heard this from a friend and try to check for my self and surprisingly,nothings new another argument that putting bitcoin in badshape..

[myaccount1 584]

And i like this volatility of bitcoin because of  volatility of bitcoin we can make good profit and if in bitcoin price have no  volatility then i think for investors will be very difficult to make huge profit.

[shanno4312 12]

It can become really popular, but that doesn't guarantee that Bitcoin will be accepted as a currency in most of the world nations. The fundamental problem is that since it is protected against inflation, Bitcoin puts the national currencies at a disadvantage if a level playing field is given. And this is especially true with manipulated national currencies such as the CNY and RUR. In such cases, it will be suicidal for the governments to permit such a scenario.

[SagingHilaw15 35]

Because no one owns btc. It highly depend on how many the stocks and trade. It doesn't have a stable value because of the users.

[myaccount1 584]

3 hours ago, SagingHilaw15 said:

Because no one owns btc. It highly depend on how many the stocks and trade. It doesn't have a stable value because of the users.

Yes bitcoin is depend on the peoples and its market is fully free no one can control on the market of bitcoin, and its price is depend on the nature of demand and supply.

[miran523 70]

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.

[SyntaxEr. 709]

Bitcoin is so volatile because it had a limited supply and mostly of supply of the coin is on the hands of market manipulator thats why they can do what they want up or down is possible as long as you hold a big percentage of the total supply.

[Rosepetals 407]

Bitcoin is very volatile because of it's demand and supply.When people invest in stock market supply lessen and the value pumps up.Its depends on it's user or investor why it's value changes every minute of the day.

[nasipadang 399]

That's because the value is determined by demand, moreover the crypto market is very large and more than 60% is the bitcoin market. so it's natural that bitcoin is volatile, especially since users have different trading or investment ideas and concepts. just imagine how many bitcoin users are in a market with a large amount of volume.

[camren653489 57]

I do not agree that the price of bitcoin does not matter. Everyone who says this need to ask what is the significance, such as the dollar. Governments have long used the uncontrolled emission mechanism. If all the dollars in the world are returned to America, this country's economy will collapse in one day. Therefore, the American government supports the theft and withdrawal of capital from other countries. The bitcoin price is more motivated than the dollar price.

[Jimmy 437]

Because decentralized network ecosystems make bitcoin unable to be manipulated by just one person, Indeed some whales can sometimes manipulate but other things will not last long because of supply and demand. That is simply and for more detail you might be able to search on google.

[miran523 70]

This is how crypto market works. Actually we must be thankful for these trend of price cause it give us chances to gain more profit. It is moving every seconds and its prices are really unpredictable. If you know how to play it will, then you're probably won't get worry if it will fall down.

[Brushless4500KV 4214]

I always ask myself who decides the price of bitcoin at every hour or every minute? The answer to this question shed lots of light into the concept og volatility of bitcoin.

Despite the fact that it is said bitcoin is not controlled by anybody or any organization, I think there are people or groups who actively control it and have big influence over its price to gain huge benefits.

From which source(s) websites like Binance.com announce bitcoin price every minute or every second with high precision?

[niroblm 141]

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

[Cryptominded 704]

On 10/8/2019 at 3:56 PM, Consignee said:

Because the market is depending on behavior of its users, since the market isn't controlled and being traded in the whole world for all the time. When the market is decentralized, you can't make it stable by anyhow. More or less, volatility will always be there.

I quite agree with you, but if and when we start having more merchants and institutional traders, the volatility is sure to reduce. For now majority of participants are speculators, who want to profit from every move of the market and they're not particularly interested in the value of Bitcoin - just the profit to make.

[AL SHAIMON 1293]

Bitcoin is too much volatile because there are so many investors in crypto world. Some of them buy bitcoin at high rate and some of them sell bitcoin at low rate that's why BTC price is so volatile. I think right of buying BTC is when it's price down around -0.30%.

[Sahbana 212]

Because BTTC has no objection from the financial side, it is different from fiat currencies that have backups from the state.

[miran523 70]

Bitcoin is so volatile because it has many investors who are investing on it. It is also the most-known by everyone compared to the other coins. Bitcoin became popular because it has already produced many rich people.

[josephrioveros123 698]

I think bitcoin is volatile because. Investors come and go. They buy bitcoin and hold it for a while and then sell it. That is why it is volatile. But other thing to consider is it's demand, number of transactions, popularity, The real thing is that there is no once can really predict the trend of bitcoin. No one can accurately know what will happen. It is just speculations and predictions and theory. But I think that theory has an effect on the movement of bitcoin because of that theories. Some people buy a lot of bit coin that is why bitcoin's price goes up a little. But then when somebody know he can have profit on it then he will dump his bitcoins. That is what I think happening in bitcoin market today. Please correct me if I am wrong.

[Anthomy K 446]

One of the reasons Bitcoin can fluctuate with respect to fiat currencies is the estimated stock of value compared to fiat currency. Bitcoin nowadays is like gold. This is due to the decision of the developers to limit production to a fixed amount, 21 million BTC