Bitcoin Forum

what are the reasons that effect the bitcoin value?

The price is based on supply and demand.

You should ready this article. It's really helpfull.

https://bitcoinmagazine.com/articles/bitcoin-volatility-analysis-1377627247

For newcomers this sudden rise or decline could be terrifying, however if you read more in to, you will understand the concept, and all the pro's of it better.

Good luck reading up.

Supply and demand, what people are bidding for and asking for on exchanges. Those all are factored into determining the price of Bitcoin in fiat. It is just like how the price of stocks is determined, and the whole thing is highly volatile.

Same answer but more detail - the value of bitcoin in terms of dollars is just a translation, a conversion form one metric to another. The  same exists between bitcoin and every other major currency.

The reason  for the changes is supply and demand - if  there are more buyers than sellers, the price goes up. If there are more sellers than buyers, the price goes down. The challenge is figuring out who's buying/selling and/or what's causing the popular sentiment to buy or sell on any given day.

The same exists in the stock market.

i just thinking simple,maybe because dollar is strongest currency and many people using dollar for comparison to other currency

Bitcoin is a freely exchangable digital good (currency). Therefore the price is determined by offer and demand. It also is a very speculative good. That causes the price volatility.

It is all about supply and demand. More buyers = price rise in fiat terms. If there are more sellers = price decrease in fiat terms. These are just the basic factors. There are many more intricate factors that affect the Bitcoin price in international market.

Bitcoin in dollars change because its traded like any other divise, all the divises change its value on every transaction on market.

Supply and Demand.

It's one of the best payment systems out there. And there is a limited number of it.

Not only bitcoin and usd but all currency prices will be changing because of trading. This change may be very fraction of price or very big amount like this week bitcoin price went up almost 100$ in day time and came down almost 100$ in night time for me. So it purely because of trading and demand and supply these prices always changes.

A variation of metrics such as Bitcoin adoption, usage, seed capital and funding into development and the ease of use.
That is all part of supply and demand but it can be approached from a company like approach to growth on a macro level.

The demand rose in the past few days and that's the reason why the prices rose. Some factors that might have affected the price rise this time were : FBI auctioning the Silk Road coin, halvening thats going to happen the next year and some say that 5,500 BTC were bought by someone is a quick time to pay of the ransom demanded by some kidnappers.

The coin is young and not used by everybody. Before it stabilizes it will probably take many more years and many more countries have to accept it.

Not only the dollars, but also bitcoin value in all currencies were changing frequently. Because, demand, inflation, buy & sell. These factors are affecting bitcoin price. :)

where do you live dude , i think everything around the world that have price/value always changing, just like EUR to USD or USD to EUR

Unless you have a peg, the exchange rate between 2 currencies will always vary.
Nobody goes around asking why the value of USD in BTC keeps changing, do they?  :P

this is a good question, but if you think, a price of an object change every time due the necessity or supply or even a lot or other reason...

it's the sentiment, people jump on the most profitable train, bitcoin seems this one again this time

now the trend is shifting again toward the pump and bull market, jumping now in make more people follow the first and so on

you get a long chain of an unstoppable good sentiment toward the market

It is relevant due to a commodities value. Our dollar changes here when gasoline goes up so it is dependant of the cost of a barrel of oil. If that goes up so does our dollar.
Same with any other currency but with a different factor involved.
Now this currency seems to be reliant on the exchanges and sell/buy scenarios. This is never so easy to predict. Because people's actions are always unpredictable.

There ain't just one reason, but many...
There are many factors besides sentiments that decide where the price will go and why it changes, and it is mostly depending upon "manipulating bodies" who work behind the scenes with their huge amount of coins to make bucks on people like us...

That happens for all currencies when compared to another currency. I write for a Canadian stock website. I get paid in CAD even though I'm in the United States. Sometimes I get paid about $0.76 per $1 CAD and sometimes I get paid $0.80 per $1 CAD. That's an exchange rate. The same happens with bitcoin. When more people are buying a currency, it gains value against other currencies; when more people are selling a currency, it loses value against other currencies.

Comparing to Forex and Stocks markets, Bitcoin's market cap is not so huge. Also, there are a lots of newbie investors playing with BTC. Even a slight movement may cause "panic buy" or "panic sell" effect on crypto-coin markets.

The price fluctuates strongly in short time. We can not just simplely apply the  economic rules supply and demand to it. IMO the main driving force should be from the speculative move. We should know that Bitcoin is a type of new currency and ppl are still sceptical about it! Its adoption rate is still not sufficient to make its price stable yet at the moment! We still have long way to go and make Bitcoin be able to compare with the current state of dollar!

yeah that's the name of the exchange rate.
everything is may change with or without cause. it all depends on its policies

It's also because contrary to dollars/euro or others fiat money, you can't really use bitcoins in real life... So there is a hell of a lot exchange between fiat money and btc and everyone is more or less afraid of seeing the bitcoin skyrocketing and missing the opportunity or going to the dump while having lots of btc. Which make that everyone sell or buy bitcoin all the time, contrary to dollars where the vast majority of people using it never change the money ;)