Bitcoin Forum

why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?

Because 1. lack of liquidity - Very few are actually trading a single coin and usually holders have too much of one coin. Anything less that 1,000 active traders on a single coin will see strong volatility in altcoins. In Bitcoin, which is less volatile than altcoins, around 100,000 active traders.

Second, there is no real usage/demand for the coins, all speculative. Unlike wheat, oil, rice which can never crash so bad.

The volatility of cryptocurrencies is due to the fact that this is a new round in the economy,which quickly gained momentum.Very large funds are floating in this area,and people who know this a little.The mistrust of investors to a greater extent from a misunderstanding of the process.And losses on investments can be in any sphere, whether it is exchange rates, the price of oil or just shares of different companies.Did you see what happened to Facebook?)Do not be afraid,we must act.

If it would not be volatile you wouldnt be here. Why would you be? Volatility is normal in a new asset that has such wide yet unknown applications. It is called price discovery and will go less volatile with time

Those people that lost a lot and blaming the volatility of crypto's shouldn't invest.

The lack of understanding makes these people lose because they just been told that they'll become rich by investing to crypto's.

In my own opinion, crypto volatility can only be controlled if we have more institutional investors than normal investors,  institutional investors invest in a project for a long term purpose, they don't invest in a project and dump it after one or two months, like the way normal investors do. they will invest in a project only to dump them all on the first day it hit exchange.

Another reason for the volatility is that the market is very thin most of the time and someone without much money can push things around.  A larger investor could push Bitcoin around thus controlling the market.  You better believe the big boys are in here pushing things around.

First of all, no weak hearted person should never come into this sector. This market always moves because people are investing, trading various coins/tokens from time to time and there is that pump & dump situation created and orchestrated by whales who only do those things to make the market even more unstable from time to time and weak hands react to those moments of fud by selling their assets at loss. It is a cycle of cryptocurrency. So, there's really nothing we can do about it apart from trying not to panic during the bloodbath of the market.

There is too little money in this market segment. Unfortunately, volatility is an indicator that even not too large whales can manipulate the course. Within countries, such volatility would be fatal or would show very poor dynamics for investment.

Well the market is still very young and has less liquidity. Less people holding more of a coin. I believe when there is mass adoption it will reduce the volatility.

Despite company sized valuations, cryptocurrencies don’t sell a product, earn revenue or employ thousands of people. They generally don’t return dividends, and just a tiny amount of the total value of the currency goes into evolving it. Because of this, it is hard to value. How do we know if it is overbought or oversold? When is it a good value or overpriced? Without any fundamentals to base this information off of, we can only rely on market sentiment, often dictated by the media that makes money on viewership.


Cryptocurrency is a worldwide phenomenon, and while governments are clamping down on the industry, regulation is still in its early days. Such limited regulation allows for market manipulation which, in turn, introduces volatility, and discourages institutional investment, since a large fund has no assurances that their capital is truly secure or at least protected against such bad actors.

What is the level of volatility? I think there is no financial instrument that does not some elements of volatility, what we need do to survive is to be strategic with our investing approach.

Most asset class turning into emerging markets are usually susceptible to huge fluctuations, gold and silver had their own share of this, the volatility will eventually reduce as cryptos gain wider adoption

This is linked to several factors but for me the biggest influence of this volatility and the lack of volume in the currencies, for example, with any 10,000 coins you can manipulate the market of several currencies and this is because the currency has no volume to brake the invested by large or small investors.

Look, crypto has been volatile since its beginning. Even after almost ten years of its existence, crypto is in developing stage and still not ready for a worldwide usage. Plus, it is similar to the stock market (as its assets are digital as well) and its value fluctuates more than the value of real estate or national currencies. In addition, FOMO and FUD are stronger in a market full of people that had no experience with trading before which makes them more vulnerable to their emotions rather than analysis and rational decisions. Ultimately, it is very difficult to predict the price of these assets in the future, so it might make you rich or poor while you are playing a lottery of life  ;D.

crypto space is so volatile because people are in charge of their money and will make their decision without facing any consequences, you can sell at your own price and you can buy at your own price.

There are many many reasons but I think one of the major reasons on this volatility is because of the lack of regulation in the cryptocurrency market. Despite the good things about crypto, there is so much negativities going on around.

Crypto is so much volatile because it has to do with supply and demand, it's a free market where people choose the price at which they want to buy or at which price they want to sell. so anyone can sell or buy at any given price available, and there nothing anyone can  do about it.

It is because the price all depends on the market demand, it all depends on the investors and traders since they decide at which price do they sell or buy cryptocurrency. A cryptocurrency without demand most likely becomes valueless.

Just wait for the big investors are getting in Bitcoin.. I hope they do.
Watch the historical price of bitcoin and altcoins.

If you go up 2000% we can also go down quickly.

Until the market has no regulation and punishments for manipulation, the market will be very volatile. Big money earns a lot of money.

That's because people speculate so much in the market. There are actually so many whales, playing the market price. Their power caused high volatile. I think there is no solution yet. Anyway, this thing is both good and bad so let's just enjoy this.

Yeah I agree with you, crypto market is all about demand and supply, and if you really understand the market demand and supply then you will know why crypto market is so volatile, when much people are willing to sell and few are willing to buy, the markets goes down vice versa, the only to control crypto market volatile is when much people are holding their coins to create a huge demand in the market, of which that is not possible.

but oil ,wheat prices are regulated by the governments but the crypto is decentralized , moreover it is the fact that some addresses possess the significant price of the certain coin not all of the crypto currencies according to you particular coin should dump not the whole market

Dont think so, when we start to get news like " BTC is 10-12k now" new people also join the bullrun, greed is working that way, human memory is too short)

It seems to me that liquidity is the main feature of the crypto currency. Of course, whales seriously affect the market, one can say - control, but this is not the state. Still, the crypto currency depends on the community, which, as for me, is its positive feature.  ::) ::) ::)

Take a look at the past.
In 1980s Japan's stock and property markets were increasing very sharply. It was like a miracle, everyone thought that Japan's technologies are the best and its markets would never crash.
But than in 1990s there was a longest crisis that japans ever seen. Stocks values decreased for more than ten years and there was many bankruptcies.
In cryptomarket there could be very similar situation, so I do not think that the volatility of market is the main problem for investors.

I think that it is possible thank to the crypto's dependence on the real event in the world and so on. Such influencers could make a great impact on crypto.

One of the major reason crypto is so much volatile is that most of stocks values decreased for more than ten years and there was many bankruptcies.
In crypto market there could be very similar situation, so I do not think that the volatility of market is the main problem for investors.

This is the nature of the crypto early on. fluctuations is already a reasonable risk to take place. to overcome these things certainly is difficult let alone is indeed the market it is difficult to control the erratic and unpredictable. This may be a consideration of many people before entering in the field of crypto.

It's hard to control volatility as this is what make cryptos attractive to us. If we just see the bigger picture here volatility is what actually gives us decent profit and without volatility we can't maximize the market and we're just stuck in a stable yet boring market. So will you still wish to control it? I know volatility is somehow annoying but just always think unimaginable and always be careful from what you wish for.

Because crypto is spreading all over the world and its value is increasing only, I am sure that the potantial has not been opened yet and there will be much more interesting events.