Bitcoin Forum

We all know that pandemic has caused a surged in demand for foods, commodities and other goods in the past few months which caused the price to rise. But the market and other business establishment are already open and the economy is slowly recovering from pandemic crisis which helped prevent prices from rising sharply despite the pandemic.

Now that Christmas  day is about to come, the price in the market suddenly increased and doubled the price.

Is it still because of covid-19 pandemic? Or because of upcoming Christmas? Or just because of higher consumer price index (CPI) inflation?

What do you think guys?

My personal opinion is "take advantage" of traders since in these days we have seen the price rising very fast. If I remember correctly, we have seen some collapse also in the past. Maybe it could be also related to end of year taxes that are payed in most of western countries.
be aware price can rise to old level in a matter of days ...

ake a look at coinmarketcap now, and it's a good time to hunt bitcoin.
is undergoing a significant correction above 10%.
that is, at a price of $ 16,000 and observe its movements. completely unexpected correction affecting all altcoin prices.

This is a direct prediction of many people as to whether the correction will last long or not. What is certain is that mid-December there is a lot of speculation by analysts who think there will be new movements that will dominate the price of bitcoin.

When the pandemic strikes in our country the price of commodities really increased worse some of these products have doubled the price from the original amount prior to the pandemic.  Now that our country has started to reopen the economy slowly people are getting back to work and businesses are opening their doors again but the price remains the same.

There are a lot of factors that affect the price of a certain product it could be the availability of the product itself or the materials used for it, it could also be the demand due to the season or the tax that the government has to impose on it but rest assure this changes will give a huge impact to the economy.

Inflation is the major culprit here, food prices, taxes are on the high. The government seems not bothered by the plight faced by the masses because of greed and exploitation. Christmas doesn't have major impact on most of the commodities which are on the increase in the market.

As a result of pandemic more countries have experienced a negative economy. For the past six to seven months the global business is drastically affected. The medical sector and the telecommunication industry experienced massive growth in its stocks. Now slowly things were getting to function normally. As a result now to compensate with the past losses and to make use of the festival season now there might be hike in the price.

Despite the rise in inflation the market demand for bitcoin is increasing as there is no government tax here there is no government or institution huge populations around the world are circulating these currencies through a kind of secure network. No one is a policy maker everyone is equal just a node in the networ this coin will go from buyer to seller directly without any intermediary safely and surely christmas the demand for investment increases and the market price increases a lot.

None of the above.

I think the March crash completely destroyed selling liquidity across most markets. Then the combination of bond market QE and fiscal stimulus pumped trillions of dollars worth of demand into the market. So we had very thin ask side liquidity (low supply) combined with extremely high demand, and this essentially applies to all risk assets, not just BTC. Gold went parabolic to a new ATH earlier this year. So did the stock market. Bitcoin was actually rather late to the party.

Anyway, after the initial recovery, the market kept rising for technical reasons. Markets trends operate on price feedback loops: higher prices tend to reinforce hype and demand and seller greed (not to mention short squeezes as bottom sellers become trapped), which bring about higher prices in a repetitive cycle.

I am from Nigeria and the major cause of price hike in the first and second quarter of the year was due to the pandemic all over the world but this last quarter is as a result of exchange rate. Mostly the price of importing is now alarming due to currency exchange rate. Hoping to have it better before the end of the year.

The head of the Central Bank warned of a new financial bubble in the real estate sector (in Russia).  This financial bubble arose from the preferential mortgage lending.  In Russia, in connection with the coronavirus pandemic, measures of state support have been introduced for key sectors of the national economy.  

This situation is typical not only for Russia, but also for other countries.  The money supply of paper money in the world has increased significantly.  At the same time, the number of bitcoins remained unchanged.  

Satoshi Nakamoto created Bitcoin to deal with the global financial crisis.  It is a defensive asset.  Therefore, its price is currently increasing.

I just can’t tell anymore, but I’m not happy about the lockdown that took place when the pandemic started because that’s when the price of foodstuffs started increasing.

It hasn’t been easy for a lot of people where I live, and the funny thing is that as people are complaining the price of foodstuffs keeps on increasing everyday you go to the market to buy the things, I don’t know if the sellers are the ones that are just increasing price on purpose or what? Even the least thing you will get in the market is still costly. We have not even entered December yet, when we now go into December what will happen?

Demand.
There's no other reason for such an increase, it's always being caused by the demand. Even if seasonal, there's also part of demand's contribution in it.

It's supply and demand. Those are the two core components that determine price.

In 2013 and 2017 there was a noticeable "drying up" of BTC supply on exchanges. Holders were refusing to sell. New buyers were withdrawing coins from exchanges instead of placing asks on the order book. All of that meant there were less available BTC to buy, causing prices to spike even higher when new demand hit the market.

That's how bubbles are born: insane levels of demand and a collective refusal to sell. HODLers have a huge effect on the market.

Yeah, just go back to the basic tokenomics of crypto, supply and demand.

We all know as we see another halving this year, supply has it's effect - increasing Bitcoin's scarcity, which based on historical logs is the catalyst for a huge price increase, a bull run months or years after the halving. So we are seeing the start of the bubble again and this will build up and eventually we are going to hit a peak. Just a question and matter of time what will be the top or all time high in this coming bubble.

It's not caused by the pandemic and crypto has started to build a good fundamental to make the institutional investors are feeling confidence to invest in the cryptocurrency.
I think that you must often read the article on the various platforms. There are so many news with good fundamental have published since the announcement from paypal about the bitcoin service.
The christmas is not giving any impact to the market. The institutional gave all of these impact with a their money.

The bitcoin halving could be the reason but i personally take the crypto adoption as the main reason.

Well yeah. I'm assuming that everyone is aware of the supply of bitcoin having its limitation at 21M.
We've got a natural demand and it just keeps on increasing with all these institutional players and news that are coming out. It's very encouraging when people see such news and it's giving an idea to everyone that this time, it's no time to waste.

Crypto is increasingly being seen as a possible hedge against irrational money printing of fiat. Bitcoin is more or less deflationary as the supply is limited and the expansion rate at present probably is outstripped by it's demand - hence the price increase.

As to why Bitcoin is rising stronger, well the media still presents it as if it's a singular movement. Only channels like CNBC even bother minuscule mentioning other chains like Ethereum.

What I'm talking about is way less abstract than the idea of trying to "price in" the scarcity of 21 million BTC.

I'm talking about the literal amount of BTC deposited and flowing into exchanges. The less BTC held on exchanges, the less BTC there is on the ask order books, therefore the higher price will go (assuming equal or greater demand). There are services people use to observe this, like Glassnode.

Media is not that strong this time but we can actually hear many good news on social media which I think is more effective and the hype of Paypal makes bitcoin almost reach its all time high. Well, we’ve pause for a while and I know the trend will continue after this correction, many good reason for the price spike in the coming days.

During the pandemic, many people lost their jobs and the economic sectors are getting worse. Even worse, the investment field like Forex and others also got bad impacts. While crypto investment seems to get no significant impacts, instead can continue to improve. This fact, make people try to join crypto investment or trading. They need a place that can gain money this time. As the result, the demand in the market is increasing a lot.

First of all it is weird that this was started literally around the time it crashed.
Secondly, how in the world do you think Christmas could cause a spike in bitcoin price to double in 2 months?

I mean sure if it was just few days I would maybe understand but it has been going up for months, on top of that there is ZERO connection between Christmas and bitcoin neither, it is totally different and unrelated stuff.

Maybe we have increased in 2017 during December which makes people think they are somehow related but remember during 2018 we were $3k, so in a year we moved from $20k to $3k and it was still same period. So, I am sorry but you are wrong, the holidays have nothing to do with it, there has been a million other things going on during this period in crypto world that could affect it.

Hello
Bitcoin is a decentralized currency which does mean that we cannot ever put a pin on the reason why the price hikes, therefore instead of this I do believe this all reasons have a commutative effect which inturn creates a better reason.
The Christmas 🎄 actually should cause decrease in the price according to me since during the holiday season people tend the incash out. We still have 25 days to see how it will go since we are not  that near Christmas.
At present I believe it's just that Bitcoins is proving to be extremely helpful during the pandemic and people are finally seeing this and therefore many companies and the business ventures are even investing in cryptocurrencies, over the month we have seen news of companies keeping their funds in Bitcoins and banks accepting it as a inheritance etc...

I understand your desire to know why something is happening but you are never going to figure out something as complex as the market, each person is buying and selling with the intention of earning money but at the same time the reasons behind this are unique to each people so more important than why this is happening you need to ask what is happening? If you can answer this question successfully then you will become a better trader and be more accurate in your trades and be more profitable with them.