Bitcoin Forum

Hello guys, In 2017, Bitcoin’s price soared from 1,000 usd to just under 20,000 usd before dropping down to around 13,000 usd at the end of the year. Since then, its value has risen and dropped sporadically from day to day. now its around 8,300 usd. So what may cause this drastic change of bitcoin value ?

Big bitcoat volatility is due to the fact that the market of cryptocurrency is still too young. Any minor news can trigger a price change. As the market develops, the volatility of the cryptocurrency will decrease. The more people will use bitcoin, the less there will be price fluctuations.

It is true that bitcoin prices are currently declining after bitcoin prices peak up to $ 20,000, and I think this is because of the price bubbles that will occur in annual prices.

     In my knowledge and understanding the volatility is a nature of bitcoin since it was created. It is also the reason why bitcoin become more popular and valuable. Because of bitcoin volatility many investors are investing to gain more profit from bitcoin. Volatility is the essential ingredient of bitcoin. But there are also factors that cause of volatility of bitcoin like panic selling,digital currencies small market size ,low liquidity and immature regulatory environment,it can help bitcoin price fluctuations.

there are more causes why bitcoin value always volatile,  which the most reason is whales that always bathing on the market and always dump when the growth rate Increase and touch the new value.  And the rest is fuds that always intimidate holders to create panic sell and banning reason such countries ,exchange or site like facebook and google. which is had a huge affects in the market ,

Here's what I understand why bitcoin is so volatile. News, when there is bad news people panic and sell their holdings and if there is good news people buy bitcoin to ride the wave and if they feel it will start to fall again they sold what they bought and take their profits. As for what happen last year from November to December there was a lot of good news pooping up in the internet that time and bitcoin was going mainstream and there was a lot of new people who were riding the bitcoin train that time and after it went to $20k level "I think some whales started to sell their holdings" and when people see that the price was decreasing they panic and cause the crash. Just my thought.

The causes of volatility in bitcoin can be traced to many factors which include the government policies, the laws of supply and demand and individual impact.

Bitcoin fluctuates as investors know that 2017 bitcoin has a strong growth beyond everyone's imagination, but also the time it changed dramatically to the time of flight is not increasing and down strongly. The reason for this is that other digital coin also thrive along with the development of some other currencies, which are close to the bad news of bitcoin as the shaky mayor.

The volatility of quotations of bitcoins in the coming years will increase, rather than decrease, since at the present stage of the development of the currency, the fluctuation of the exchange rate increases its value for speculative investors

Market become unstable for ban news from different sources. FUD is also another reason. This market is will stable soon the more countries will concentrate in it.

Analysts are sure that the volatility and sharp jumps of the BTC exchange rate will continue. The situation can change only if the new asset class does not become a more stable and reliable way of storing funds. If this does not happen, bitcoin in the eyes of financial organizations and the public will remain a suspicious payment service.

Just people buying and selling at the exchanges causes the fluctations. Everytime a positive news comes in, new entrants flock to buy in. Intra-day traders are involved in a big way as they play with large amounts.
The major drops are caused by new about regulations, exchange hacks etc. Bitcoin continues to move sideways afterwards. Once enough time has passed and everybody is sure that nothing is wrong, they start FOMOing again and it rises back, inevitably, every time.

This is the bitcoin boom and gloom cycle. Just hodl tight and keep trying to earn whatever Satoshi you can.

Every economic news, government decision of any country, hacker attack or mass sale only further stimulate bitcoin volatility. While the system goes on all possible tricks to avoid inflation and volatility, gradually introducing into circulation 21 million units of currency, the demand on the BTC undermines all these plans.

Observing the graph of the variability of the bitcoin rate, you can see that the currency could be compared with the stability of gold or the US dollar only for a moment. Many times, the price of BTC jumped by several tens of percent in just one day. The problem of market volatility bitcoin is not solved to this day. And it remains only to bet on whether the e-currency will have time to achieve stability before the economic bubble bursts.

Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors.  Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX).  Volatility in Bitcoin does not yet have a generally accepted index since cryptocurrency as an asset class is still in its nascent stages, but we do know that Bitcoin is capable of volatility in the form of 10x changes in price versus the U.S. dollar, in a relatively short period of time.

Ask and bid  ;D

One of the factors that make bitcoin volatile as it's decentralised system. Central banks manipulate the value of their fiat by changing interest rates.

You can't do this in bitcoin so it's value is very close to the market value. Since there is regulatory commission controling bitcoin, no one steps in when prices crash.

It may be a good or a bad thing, but it is the reason why people flock to bitcoin. To keep the banks from messing with their hard earned money.

The best thing to do is embrace the volatility, I know it sounds counter intuitive, but the volatility of crypt I currencies is a trader's dream. Buy at the bottom and sell at the peak to get nice gains and volatility makes those peaks and troughs both more often and more extreme. I know for a fact that in the future, if and when the volatility dies down,  I will miss it

I agree, with the market be young and with a lot of FUD going around, it's without doubt that it's the major cause of the volatility going on in the Bitcoin market, But i believe that the more people buy and hold on to their bitcoins, the less it becomes volatile and the more stable the currency becomes.

The markets are still too young. There are many many early adopters with thousands of coins and they can suddenly get out or get in to the ecosystem just because they can do it. These early adopters are probably around 1000 or 2000 people according to https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

In time some of them will die, some of them will lose their private keys, some of them will dump their stash and bitcoin will keep growing. In the end, when the bitcoin marketcap gets big enough, it will be a lot less volatile like what gold it is now. It will probably look like what gold/usd when btc's evolution is complete.

The volatility in the price of bitcoin is something that is part of the bitcoin network and market, since bitcoin also operate on the law of demands and supply it price can never be stable. Bitcoin is not like other commodities that has a fixed price so at that the demands for it will always determine the price at every point in time. And that is what big investors are taking advantage of it can easily be influence by them.

the cause of bitcoin volatility, as it is affected by the news that scares the bitcoin users that bitcoin is likely to be governed by the government, the security vulnerability makes investors react, making the bitcoin unstable. Tax imposition on bitcoin also affects the volatility of its price.

I agree that bitcoin volatility is caused by people who sell during the fall and many investors take opportunity for the time like that as it will surely give them profit. Government also cause for that volatility as they want to control on it. Also there is correction to it for more security. The more that users increase the more that many strive to have it.

Bitcoin volatility which causes the change in price is caused by fundamental analysis. The news items from government are the one that causes traders to demand bitcoins or sell off their holdings.

Cryptomarket is very volatile, and the news makes it more volatile. People react on that negatively especially for those new in cryptoworld. There is no specific cause of bitcoin's volatility but I think its more on the emotion of every traders and the manipulation of a great whale.

We really don't know what the cost is, but for my opinion it is the billionaires are manipulating the market with the help of the medias around the world, they raised a good news then the price will pump up then a bad news the price will go down. that's it

Good answer I think, bitcoin volatility can decrease after some year day by day if it's goning stable situation and more more marketing also.

There may be several factors that influence the fall in bitcoin prices if in my opinion, it is possible that more projects use bitcoin so the need for bitcoin is higher and while the presence of bitcoin is getting stepped because there may be some people who hold the bitcoin and release it until right time. So I think it could be this factor that can cause bitcoin prices to go up and so now the bitcoin price drops maybe the projects done in 2017 and before that are still running so the need for bitcoin will be reduced da notes as well as factors about the rules that can make investors wait will be policy on bitcoin

I think there's many reason that cause of volatility of bitcoin because of fud news that affect the market and people are panicking that's why the price dropping because if their panick selling.

When more people are buying and selling that can affect the price of Bitcoin especially if huge amount of the supply is involved, it is the basic demand and supply. You can also expect that if a cryptocurrency that drastically increased its value in a short period of time that it will also experience a downfall or a price correction, because people will surely end up taking their profits. What happened the last time Bitcoin reached its new all time high, there are huge investors that sold their Bitcoins and that creates fear to small investors, and those FUDs are also the reason, that is why it continues to go down to $6000. But it is now starting to recover a bit.

Trading and Selling is the big reason of its volatility, last year before newyear and christmass many people sell their BTC because of the need of money for the upcoming event that's the reason why the price falls back.

I think the main reason is its supply anf demand. Supply increased more than demand which caused the volatility.  Even sometimes the negative news about bitcoin disrupts the demand that leads the market to volatility also.

Hello! a sharp change in the stability will be soon! now very serious players are making a purchase! and I'm sure it does not happen through the exchange! so such a low price is beneficial to large purses, but soon everything will change! the main thing is to catch the moment! scares only one thing soon summer - and in summer there is always a recession! it remains to wait for the winter, then there will definitely be new records in bitcoin price!

there can be many reasons my man, but one of the biggest reason would be the market is not mature enough. so that fuds and things like that can effect on peoples mind. i hope after becoming little bit older market of cryptocurrency will be much more stable.

many factor cause of volatility of bitcoin,  major factor is demand. The negative news also affect the market. The government ban bitcoin , it also affect the demand is low.

It's how the market reacts and the market consists of companies that use bitcoin and traders and individuals, these people reacts positively or negatively on news related to Bitcoin, some thought it will crash, some thought the price is increasing and of course many sells because they already made a profit.

Volatility is natural in this market. In my insight and understanding the instability is a nature of bitcoin since it was made. It is additionally the motivation behind why bitcoin turn out to be more mainstream and significant. In light of bitcoin instability numerous financial specialists are contributing to acquire benefit from bitcoin. Unpredictability is the basic element of bitcoin. In any case, there are likewise factors that reason for unpredictability of bitcoin like frenzy selling; digital monetary standards little market measure, low liquidity and youthful administrative environment that ignite to value changing tendency.

Well, volatility is one of the features of Bitcoin. The price of Bitcoin is never stable. It is always flactuating. I think soon again the price is going to rise.

I think the reason for this price down is there are some big whales who are controling the market and they are behind of this volatility. ::) ::)

Due to the buying frenzy last december! Starting september last year there is a noticeable increase of people who are get interested in bitcoin and even alts. What just happen is those interested people, including me have dive into bitcoins. Thus it create a frenzy buying way up until december. After that, most of the people who are interested in bitcoin have already bitcoin. Thus the next thing they want to do is to sell it off. But most of the people are selling off and no one wants to buy. There, the price continuously decrease. In order to achieve higher price, there should be again millions of people that are willing to buy bitcoins to make the purchasing power of bitcoin increase thus price could also increase.

As we all know that there was a price rally in the last quarter of the last year and that was the result of the involvement of the big whales and institutional investors but there was no actual user base to support the price so when the big whales and institutional investors decided to exit from the market, the price started falling and it created a panic selling wave in the market and ultimately it resulted in a correction of 65%. The market is volatile since then and I am expecting the recovery in the second half of this year.

It's not been many years that bitcoin has established. A lot of price ups and downs go on throughout the whole year. Besides, there are different FUD spread to the market with positivity as well as negetivity which make the price fluctuation and this is how bitcoin becomes volatile.BTC

 With this opinion I can not agree, the capitalization of BTC and the number of people involved in the process do not play a big role in the volatility of bitcoin.  As a rule, the price is influenced by manipulators using the news background positive and negative, just as the price is affected by the actions of those who have a large stock of BTC.

There are numerous reasons that could be attributed to bitcoin's volatiluty. The main ones were the lack of physical representation of bitcoin tgerefore making it hard for people to determine uts exact value. Another is the fluctuations on butcoin's supply vs. Demand curve that show how volatile bitcoin as a cryptocurrrency. These I think were few of tge reasons why butcoin is unstable.

This volatility has been in the bitcoin market from the start and the most likely reason for this is cause there is no regulatory over watch and whales are free to manipulate the market in any way they like. Also the market cap earlier was too low and with just small amount of money whales were able to manipulate the price easily.

The cause of bitcoin volatility is due to its immaturity. This implies that its a growing currency so there are many testing going on with it.  With time, bitcoin volatility will be a thing of the past.

All of these happen because the market is unstable.

This is how it happens by itself, after a large drop, this coin of crypto currency tries to climb to its former place and it does not turn out bad, because bitcoin has already increased a lot.

In recent times bitcoins price is not too good that’s why i think people are not interested to connect with bitcoin, another reason is some countries are banned bitcoin this reason also creates a negative impact on bitcoin. But bitcoin will overcome this problem in near future.

Any negative news will bring volatility to bitcoin.

In 2017 the price growth of bitcoin was just hyped by the new investors who are just attarcted by making money but it is not the bitcoins natural growth in terms of technical analysis.Now only bitcoin has been in the right track and the people who came to invest on ATH are in great danger now but still they have to hold them because again the price will cross ATH by this year.

the following are some causes of volatility of bitcoin:
1. market size
2. low liquidity
3. regulation
4. news event
5. inequality of wealth

After bitcoin price reach $19k, many negative news about bitcoin start from south korea government ban bitcoin transaction. After that, many false news came out and make bitcoin price drop.
I think the main factor on bitcoin volatility is on market psychology because every false news came out, bitcoin price drop and many holder become panic and selling their bitcoin

of course the correction due to the increase is too high and caused several factors. and more than that about the ban and some large media also follow the ban. this is what keeps the bitcoin down falling in, but it can not get it up to zero. and how bitcoin tries to rise from day to day by trying to grow even though it does not have too much impact. but with this, bitcoin in the future will be able to grow back to be greater than the value ever achieved.

One reason Bitcoin is so volatile is due to market size. Small markets are more vulnerable to fluctuations in supply and demand. Government regulations could also contribute to bitcoin’s intense volatility. When news is positive, it can spur investor interest as well, causing price fluctuations too.

many factor cause of volatility bitcoin. The demand and supply , the negative news affect the volatility of bitcoin.

Bitcoin is the best crypto currency system in the world and this bitcoin has that value which no one have this coin is ruling the crypto world but now a days bitcoin price fallen and this is frustrating for investors but soon this price will increase and the market will be healthy again.

The main reason for bitcoin being so volatile at that time is simply because of the fact that it was in an extremely bullish market, then the market sentiment simply went completely bearish, meaning that prices dropped significantly.

This is natural for any asset, including bitcoin. The period in between bull and bear markets have actually gotten a lot less volatile and extremely stable.

Of course, there are other reasons, such as the fact that there is no one regulating the price of bitcoin since it is decentralised and traded on the open market, as well as the fact that we're still in the early adopter stage mainly.

Volatility can actually be a good thing, don't view it as something that will necessarily hinder the growth of BTC at all.

Bitcoin prices just depend on supply and demand otherwise there is nothing to reduce and increase the bitcoin price. But supply and demand depend on speculation that every day can come to cryptocurrency. The various country regulations and corporate decisions involved in adopting cryptocurrency with simply can change cryptocurrency market. Also because it depends on supply and demand so that people who have a big capital and have a lot of bitcoin they will easily manipulate the market they say as a whales. That's what caused goes up and goes down in bitcoin prices.

Here are just a few of the many factors behind Bitcoin's volatility:
Lack of regulations – Even though governments are doing their best to regulate this space, it’s still in its early days – Limited regulations can easily allow anyone with a lot of holdings to manipulate the market.
The legal status of BTC is widely variable and unclear, making it unsuitable for more traditional investment purposes

People react on that negatively especially for those new in cryptoworld.There is no specific cause of bitcoin's volatility but I think its more on the emotion of every traders and the manipulation of a great whale.Bitcoin is getting stepped because there maybe some people who hold the bitcoin and release it until right time.It could be this factor that can cause bitcoin prices will rise.

Numerous analysts have asserted that bitcoin suffers from liquidity problems, which could in turn be contributing to bitcoin’s sharp volatility.Having less liquidity,instead of more,can potentially exacerbate price fluctuations, making it so that the digital currency’s inevitable declines are more severe than they would be otherwise.

I think there's also a possibility of market manipulation. Some party or group can also manipulate the market specially those that hold large number of coins, dictating it's rhythm through dumping coins or other means. Although it's not very obvious, but it is still possible.

Bitcoin is volatile because he is very sensitive to criticism and novosyam. In the future this will change

The thing that causes Bitcoin prices to rise is the growing recognition of Bitcoin, in addition to that increasing popularity gives a trust from the public at large. This is a dynamic thing happening because Bitcoin has a tremendous effect in the financial system that exists in the world. Recently, Bitcoin is in decline, but everyone including me is optimistic that there will be price fixes that will show Bitcoin's value is much better than the current price.

There are many factors that causing bitcoins volatility like negative media reports, banning of crypto from from other countries and negative speculation or prediction from experts both are causing to get into panic selling.

I think this is because of many investor who are pulling out thier investment and transfer to some ICO which they could see some potential. If the price manipulation is true then it would be the #1 reason why the price fall down like this.

Too many factors why bitcoin price fluctuates. One would be the "law of supply and demand", we all know that there is only 21 million bitcoin out there, so limited that people take advantage of this through hoarding/hodling. When so many people are hodling their bitcoins this causes prices to go up.
Negative news like bitcoin being banned by the government in other countries and hacking make the people panic selling their bitcoin at a loss can make the price to drop drastically and a lot of internal and external factors that makes bitcoin price to fluctuate.

There are various reasons which explains the volatility of bitcoin in the market, namely:

• Due to its decentralized nature, no department or government institution has total control over its transactions and regulations in the market. Unlike the other investment mechanisms (like stocks, golds, bonds, treasury bills, etc.), they are backed upon by a government institution which regulates its function in the country;
• Government prohibitions and country implementations which are prejudicial to the cryptocurrency world affect bitcoin's price- which explains its volatile price;
• Large trading companies and famous investors that release (bias?) statements about bitcoin influence the will of investors in acquiring bitcoin, which makes the market supply and demand erratic; and
• Media has an significant impact on attracting new investors and retaining old ones as they disperse the information- which may be manipulated depending on the country of each.

Above are some of my opinions based on my experiences with its volatility. The way to handle its volatile nature is to treat it as an opportunity to acquire more rather to see it on a negative aspect. Never miss the chance acquire more in order to maximize the yielding of income in the future.

Value ia voltile because no one and no system has tge full control to maintain the value. The price is all dependent on how holders will handle their investment. The price changes when great number of user dump the price. At some point, the price might also show tremendous changes if the whale decides to since they have the greater volume of coin.

Well it is true that investors has really an important effect at the growth and fall of bitcoin, so when more people switch to bitcoin it increase the price high ad makes everyone to attract toward bitcoin for highly increasing price, but when more people pull of their bitcoin from wallet and sell at falling price of panics then it decrease the value,. So I think supply and demand of bitcoin makes bitcoin keep on moving high and low but panic selling can also make price of bitcoin immediately down.

 There's a lot of cuases why the value of bitcoin nowadays always drastic change. But on my view the common reason that can cause drastic change in the market is  " whales and fuds "  which is they can manipulate the growth rate of the market in easy way. Especially fuds that always intimidate holders to panic sell when there's a fluctuation.  that's why the valued nowadays always dump after the bullish.

many people who buy Bitcoin with a large amount of Bitcoin prices will soar up. They hear even believe that bitcoin can bring change so many people are starting to move on bitcoin because it is almost the same as gold but high volatility that happens can still be predicted because there are things that affect the movement. Be it political conditions, monetary policy, interest rate changes, and other things.

These people take advantage of the situation and they cause a tremendous panic on the bitcoin market. This is indeed a disadvantage because only they can determine how the bitcoin price moves. In real terms then they will get and ourselves experience losses. This is why the bitcoin price looks manipulated, yes it is true that the actual condition is the price of bitcoin manipulated by bandits with lots of Bitcoin.

it is possible that the bitcoin price will soar high again like the last year did when it was just lurking around $1,000 then it increased drastically up to $20,000 by December which is the ATH we may encounter a new record this time or not, trends and news as well as FUD's possess the major influence with the game of the price that's why media's and fudders take it as an advantage to make the price turn around.

Just bitcoin bubble started to burst. Nothing personal ;D

I can somewhat understand that people consider manipulation to be an unethical activity, but they aren't doing much wrong. They use their capital and freedom that this market offers to take advantage of those who aren't aware of what they are investing in. It's up to you to research before you dive into something, so if people end up selling in panic, they have only themselves to blame for. It may sound a bit harsh, but it doesn't help to remain soft. If people act like idiots because they are gambling their savings blindly, then they should be called out for that. This market has no mercy for anyone, so you either prepare yourself properly, or the market will eat you alive....

These two factors are often playing major roles in manipulating the prices of any coin. I have many times mentioned this issue of rumors and panic selling. If the bitcoin investors realize that panic selling is never doing any good to them and they should not execute it under any circumstances, believe me bitcoin would not soar the way it did in the beginning of this year. Whales could not be handled by us.