Bitcoin Forum

There are four factors driving the price of Bitcoin they are mentioned below:
1) Animal spirits
2) Political risk
3) Regulatory moves &
4) Bitcoin’s governance
DO you think it is correct? Have you any other idea which effects on Bitcoin price?

Thanks for your nice post. It would be more helpful if you elaborate it.

Clearly animal spirits are the most important factor. I base all my purchase decisions on animal spirits.

You neglected the most important factors:

1. Adoption
2. Speculation
3. Utility


BTW, I prefer distilled spirits to animal spirits.

Exactly my thought - wasn't sure if I understood right about the animal spirits. At first, I too, thought about drinks, even if you could take them as the ghosts of pets, but yeah - pretty impressive list you got there, I do admit.

1) Bitcoin shareholders moves in a market.
2) World countries regulations.
3) FUD in media.
4) Crypto market in general.

5) Merchant acceptance
6) Network congestion
7) Mining cost associated with electricity cost
8) Unpredictable hacks

There might be more factors than all of this but I think you have covered all major factors in your list, nice list.  

There are hacks going around everywhere right so this together with all the distrust from all the governments have had a negative influence on price. But historicaly the price has always been stagnant around this time of year and we are definetly not out of the bubble yet. There is still some money left on the table

Hacks and the sort also bring good media coverage even though I don't believe the saying "Any press is good press" I do agree with it partly. In the case of the hacks of websites then I think it's good press. It get's the name of Bitcoin out there and to be frank Bitcoin isn't being hacked which would be bad press. It's the exchanges and services which use them mostly because a lot of start ups are appearing and accepting Bitcoin and they neglect certain security precautions.

Wow, we are getting more point. I think we will get more point soon.

The media can also influence the bitcoin price significantly. Media hype can lead to an increase in price, while negative news can lead to a decline in price.

A lot of things are solved by the fact that they write newspapers, magazines, speak on television, and this is already being bought and very much influences the masses of people.

The bitcoin demand and supply, market manipulations, technological changes and innovations and the stablilty of the bitcoin network.

Yes a number of factors are there which can effect the bitcoin price but i think that the main factor is the demand and supply, as much as the demand for bitcoin is increasing, bitcoin price will continue increasing, because with the increase in demand of bitcoin the supply decreases and therefore the price of bitcoin moves up, government regulating bitcoin in their country is also an important factor of increasing the bitcoin price.

There is a lot of factors to affect the price of bitcoin, but for some reason at this moment, government reaction and regulation of strong country is the key.
Adoption would be growing up and utility is on the way of developing.

I think the factors that drive the price of bitcoin are FUD and greed.  lets be honest here, most people who buy bitcoin are not looking to use it as a form of payment, theyr trying to make money.  So when they see their investment plummeting down they begin to panic and start selling off because they think it could be going to zero.  The inverse of this situation is true as well.  FUD also plays a roll in this because it usually initiates the sell off.

You are right, although not all are true factors.

9)Security of POW
10)CryptoCelebs
11)TwitterOGs
12)John McAfee

Hahah...John McAfee. Good one. It seems like John McAfee is the Warren Buffett of Crypto-world. His opinion has really impacted the market in last few days. But I don't think he has the real capability to drive crypo market.

What do you mean animal spirit? Animal like eating and sex. Do bitcoiners like both only? I don;t really understand with animal spirit. Human spirit is better than animal spirit.

Trend and growth rate has attracted new users to invest in Bitcoin. Past performance of Bitcoin is term of growth can't be compared to any other financial tool. Many Middle class People who invested in Bitcoin are now Millionaires. Their success story has motivated others also to invest and HODL bitcoin.

These are just few factors and not the complete list. It would be good if you can elaborate these points to make this post more meaningful. However, apart from the factors you've already mentioned, I would like to add few more to it,

1. Adoption & acceptance:
This is a very important factor which can drive organic growth to bitcoin. More adoption will create more possibilities and increase the acceptance of bitcoin. Countries like Japan and Germany has already legalized bitcoin, that's adoption. With this adoption, the merchants in these countries have started accepting it for any goods or services. These kind of adoption is very much required if we want to see organic growth in crypto sector.

2. Utility:
This particular factor is directly linked with the technical factors of bitcoin. Once we adopted bitcoin and merchants started accepting it, then it comes to utility of bitcoin. If we see that a transaction is taking one hour+ to get confirmed and you have to wait for that much time to get your goods in hand, it's not convenient. However, with the adoption of segwit, we have decreased the confirmation time which increased the utility of bitcoin. I am sure, after the mainstream adoption of Lightening Network, bitcoin will be second to none in processing payments pushing the utility quotient to another notch higher!

I am sure there are more factors that is driving the bitcoin price. Like demand and supply etc. But these two above mentioned factors are and worth adding to the list. 

Positive news and acceptability by all countries in the world could be another factors to help grow bitcoin price. Negative news would never help bitcoin because people would be discouraged to invest into crypto currency.

Global currency operations have been cited as an important factor.
CrytoCompare determined that the Korean won and the Japanese yen regained value and reached 48.6 points. Recent regulations in Japan allow retailers to accept legal Bitcoin. Japan's Bitcoin market traded higher than the USD - Bitcoin, with the Yen - Bitcoin transaction at About $ 2058 or 228.78329 Yen. As the yen holds the largest share of the Bitcoin trade, it also boosts the price of Bitcoin.

I strongly believe that at least one of the things keeping BTC of growing even bigger is the general lack of knowledge about cryptocurrencies, there should be an even bigger effort to increase awareness.

supply and demand
When Bitcoin compares with other virtual currencies, it always mentions "a fixed output of 21 million." In the early years, Bitcoin has not been exposed to investors in a large area, producing large quantities and digging much, but there is no demand. Now buying bitcoins, the price is expensive, the output is small, and the demand is high.
When there is an imbalance between supply and demand, the price of the goods will be affected. Bitcoins circulating in the market have decreased, and the market’s demand for Bitcoin has increased. This will inevitably drive up prices, but in the end it will not be the investment speculators who have come in at this high level.
Regional chain popularity
In a report released by UBS in October, the issue of regional chain technology was mentioned. According to the report, by 2027, the value of regional chain technology in the global scope will reach 300 to 400 billion U.S. dollars. And the regional chain, as an infrastructure development, will be applied to more and more scenarios. At that time, whether the spread of the regional chain will drive up Bitcoin prices is also full of uncertainty.
Investor confidence continues unabated
Although many institutions and financial institutions are now bearish on Bitcoin, investors are still confident in the value of Bitcoin in the future. After all, in history, there hasn't been any kind of trading product that could surge 7.54 million times in eight years.
Ten years ago, the impact of the financial crisis has left many countries with no shadows so far, and each bubble continues to expand. Investors will worry whether the original financial system will collapse again. Bitcoin, with its strong performance, will attract more investors and bring in funds, which will drive prices up. To some extent, Bitcoin is considered a safe haven asset.
Bifurcation speculation
Dividing the regional chain into two equals a doubling of Bitcoin, and a doubling of that means that the value of Bitcoin will be diluted. Be affected by the imminent start of a hard fork. Forked pause, which makes the bitcoin industry chain anxious to expand the contention of the dispute somewhat eased, the market for the bifurcation or will lead to the collapse crisis, a little relieved a lot.
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there may be many more factors that make bitcoin prices unstable and certain but clear that determines investors' intentions to invest well and confidence of bitcoin investors will flourish

There are some other factors as well that limits its growth. For instance, as a buyer I do not like one particular feature of bitcoins and that there are no charge backs allowed.  Bitcoin transactions are not reversible; this means that any transaction cannot be reversed. This means that if you have sent Bitcoins to a wrong address, it cannot be sent back. On the other hand payments like credit card transactions can be reversed.