Bitcoin Forum

Please am trying to understand how the systems work that's why I need more clarification from you. I watch this cryptocurrency prices going up and down the axis but often times I ask myself outside the fact that when people made withdrawal it affects the price going down and when people invest high capitals it increases the price automatically but is there some kind regulators like human agents or electronic technology who always do the regulatory price actions especially when trading bitcoin? Or is totally program that way? Only your views please.

Withdrawals from exchanges does not have an effect on the price, it is the exchange when the coin is traded for fiat that does. Investing high capital does not have an automatic effect, it has the possibility of influencing the value but depends on the process of purchase, the amount involved and the influence of the buyer, if known.

No, there are no regulators or tech that regulates the price. Traders have an impact but that is from the exchange between buyer and seller. Sell and buy pressure is also a factor.

- Jay -

I was once like you when I started trading in the financial market, the principle of price movement and charting of Bitcoin is not an exception. I would advise you not to bother yourself much with the accuracy of the price gauge, but the factor that decides the price is what is setting the price of Bitcoin and the currency paired with it.

What happens to either of them (BTC/USD for example) could be technical (market sentiment in which the technical chart would dictate the prevailing price) or fundamental (economical factors in which the news and events surrounding or linked to Bitcoin and the paired currency, including the country spending the paired currency).

Either of this or both could be detrimental or appraisal to the price of the coin as you see it moving up and down at the slightest influence.

What I thought about with the agents are those that are in the Matrix. Agent Smith. Lol.

Anyway, It's affected by the people who have significant amounts of BTC and really affecting the market with their decision. There are a lot of factors that could be about why they chose to sell, but it's not easy to quantify. As long as people buy and Sell the crypto, it will change in price depending on the demand.

No there is no central authority controlling bitcoin price and that is the sole purpose of why people address it as a decentralized currency. The driving factor for bitcoin price is the demand and supply of investors, just like what we are witnessing now that many banks are having trouble you see many people moving into bitcoin and this has increased the price. Also the bad news from either exchanges collapsing or either a threat to bitcoin or cryptocurrency by the government which prompts people to withdraw from it which leads to it dropping in price.

Another factor is the mining equipment, if the mining equipment gets expensive like the ASIC tools it gets hard to have more miners and the less people mining the more fees they earn and this Also affects the bitcoin price.

This ability of bitcoin not be controlled by a central body makes it an hedge against inflation because there’s no central body to regulate the interest rate like banks or governments do to our fiats

I think we Humans still play an important role in the cryptocurrency ecosystem. Traders, analysts and other market participants can influence sentiment and contribute to the overall price direction through trading actions and decisions.

Yes, the Algorithm can be programmed to execute trades based on a variety of factors, including market trends, technical indicators and news events. Additionally, the decentralized nature of Bitcoin means that there is no central authority or regulatory body that can manipulate prices, further strengthening the role of electronic technology in shaping market outcomes.

Withdrawing your coins won't have any impact to Bitcoin because you're still holding Bitcoin, right? it's different with converting your coins to fiat and you withdraw your fiat. Selling your coins will not have a direct impact to make the market down, especially you not sell a huge amount of coins.

There's no such human agents or electronic technology which will control Bitcoin price, but they did make a correction whenever the price is too far from the average price on other big exchanges, if not there's people who will take advantage though arbitrage trading.

What do people want to do with deposit to exchanges and withdrawal from exchanges?

Not all of them make deposits to sell their bitcoins. They can do it to consider exchange wallet as their wallet to store their bitcoins. That is a bad idea.
Reminder: do not keep your money in online accounts (https://bitcointalk.org/index.php?topic=5421039.0)

They can make withdrawal from exchanges to store their bitcoins more safely in their non custodial wallets. It does not help to increase demand or reduce selling pressure on exchanges. Just your theory.

A best thing they can do is using regulations, regulatory news, proposals to make panic on the market to manipulate it. This market is manipulated by news, fuds which have biggest effects if related to regulations.

There may be technical factors that may help influencing the price of Bitcoin, namely the value spent to keep miners mining. Specifically the price of electricity running those miners. But this is part of the system and PoW. If, all of a sudden all countries decide to ridiculously increase price of electricity, price of bitcoin can also raise because it becomes more expensive to mine new Bitcoins.

You need to conduct research and gain a thorough understanding of Bitcoin. The price of Bitcoin is primarily based on demand, but it's important to note that not all demands are organic. Whales can manipulate the market by causing it to pump and dump when they play. If you're interested in short-term trading, it's crucial to be aware of this information.

However, if you plan to invest in Bitcoin for the long-term, it's sufficient to understand the basics and trust in the future of Bitcoin, which will be driven by real demand.

The price of Bitcoin is not controlled by human agents nor electronic technology, but one factor which affect the price of Bitcoin is it's demand and supply, i.e the higher the worldwide demand, the more its price tend to increases due to it's limited supply, while if there is a lower demand in the use of Bitcoin, it automatically causes a decrease in price.

Supply and demand makes the market open, and therefore what leads to balance in the price is arbitrage.

When I find that the price of bitcoin on one platform is $31,000 and on another platform it is $28,000, I will definitely try to transfer my currencies to that platform, and this is how the cycle of supply and demand is achieved until the market balances.

But the difference can be very large, because I remember in 2017, the difference between one platform and another was more than 30% on the same day, but it is rare to find that these days.


You will notice that the difference is simple between CEXs and is greater in DEXs.
example:
Binance $29,309.71
Birake Network $30,191.90

Up to now, there are only speculations on whether there really is someone, an organization or whatever group of people behind the movement of crypto prices. While it has a possibility, we are yet to find any proof about this. On small cap coins though, there can be manipulation but on huge coins specially bitcoin it would be really difficult if the person or the group of people don't have a huge amount of capital to use in manipulating prices. Hence, we can only conclude for now that the holders and traders are the ones responsible for the price movements of the price of bitcoin.

In theory, what you say is true, and the value of bitcoin will be determined by supply and demand. But in my opinion, with what is going on, we have no central authority managing and controlling the price of bitcoin. But the price of bitcoin is still manipulated by the big players instead of depending on supply and demand. The bitcoin market is still very small and without regulation, so it is more susceptible to manipulation than any other financial market.

I do not think that it is that common to have that much gap anymore, when there is a gap arbitrage people and bots take care of that and get it closer, you may find it rarely here and there but most of the time that's covered. Even in dex projects when you have spread in the LP there are bots that take care of it as well and make some profit.

This is why I have to say that it is important to keep that in mind when you are making this difference, I would highly suggest that anyone who tries to make this should be able to realize how difficult it is. Even if you want to create a new bot for it, that would be start hard, because there are ones who have been doing this and fixing every little issue for many years now.

There aren’t any human agent or bots that regulate the price. Bitcoin price is subjected to the law of supply and demand. Economics 101: Less supply and high demand would result to an increment in bitcoin price and vice versa, it’s historically proven that certain negative events in the crypto space such as FTX scam, Mt. Gox collapse, can cause the price of bitcoin to go down for a period of time.

These buy/sell orders cannot affect the price of bitcoin on a large scale.

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This topic should be in Economics board.

Not exactly, there isn't a single person or a group of people behind it to determine the price of bitcoin but it can happen that a large whale influences its trend for a short time. Just as there isn't a technology behind directing the orchestra but instead everything depends on a series of factors linked together.

It's always at the market price. When people buy Bitcoin, it goes up, when people sell, it goes down.

This is true for all the markets around the world because you can buy and sell online 24/7 so people and companies try to get money by using arbitrage:


There's no trade halting like in wall st for example, and you can always just trade Bitcoin peer2peer anyway.

If you understand Bitcoin first, Bitcoin is decentralized, no one owns it, and no one can control it. So in terms of price, I agree that it's not being controlled by other entities too.
Like any other asset, the price of bitcoin is influenced by market supply and demand dynamics. It is influenced by a number of things, including international political and economic developments, cryptocurrency-related news, or about laws, other regulations of different governments, and many more.

Bitcoin is a decentralized asset, so no one can control the price, and no one can control the bitcoin network, it all depends on our supply and demand. But the bitcoin price can still be manipulated in the short term by people with a lot of money, and manipulation occurs in most financial markets, not just bitcoin.

Demand and supply is mostly applied on Bitcoin, it's very special to map out these zones inother to know the direction of the market. When there's presence of strong Buy, it means there's good bullish candles on the chart, whereas witnessing strong supply, it definitely means the market is displaying signs of bearish candles. Bitcoin is generated for the space and it can only be be controlled within the range of it's existence in Blockchain. However top whales like Elon Musk use it for to gain more profits for himself, because only his single trade affects the market, not only him but there are countless whales in the market. The manipulate glitch of bitcoin because of their best interests.

Usually the price of bitcoin is being controlled by market forces that results with either low buying pressure or higher buying pressure, and also by low selling pressure or by higher selling pressure. These typically controls the market but most time there are some bad news that may influences the market maybe due to hack of any exchange or company dumped a huge amount of bitcoin into any exchange may also affects the market. While for trading, whenever you want to sells or buy bitcoin and you noticed some certain drops or changes this is a results of Trading robot.

There is no central authority that says that today the price of bitcoin should be at a certain level and then a few days later they decide to make the price of bitcoin to go up or down, every single one of us has an influence on the price when we sell and when we buy, obviously the whales have way more influence than us, but at the end they are still held to the same standards we have to face, and if they make a mistake then they can lose money as well.

Bitcoin is totally Decentralized and not under any government, institutions or individual control. Bitcoin price depends on
1) supply and demand within the crypto space
2) Bitcoin halving impact
3) influencers such as the whales
4) change in demand and supply due to social media influencer.
5) adopting Cryptocurrency in countries where they were not accepted or used before.
This are the few things that impact the price to some extent. The impact at times are not too significant.

With all points mentioned above, everything still point to demand and supply of the coin . If in a market , there are 30 bicycle for sale at $2 each, when some one buys 1 bicycle , it increases the price of the remaining bicycle because there are limited numbers of bicycle in the market. If more is bought, the remaing bicycle price will keep growing by a percentage. What happens if people bring more bicycle to that market, the price will start dropping due to availability of bicycles in the market.

In a nutshell, the more coins that's available, the lesser the price becomes, and the fewer the coins in the market the higher the price becomes. This explain reasons why Cryptocurrency market is so volatile. Cryptocurrency is not controlled by anyone

Exactly, that's because Bitcoin is volatile, there's no guarantee when it will pump or dump. The market goes up and down not only from buying and selling, there's always news that for example the economic situation that might affect the market in the cryptocurrency to pump or dump. For sure, whales also one of the reasons that can affect the market price especially most of whales are in group so they act together. If they want to pump the price for sure they'll invest but when they sell the coins value will reduce. That's why most whales have discord or telegram for them to announce they will invest or sell in a certain coin for other people to be aware and be ready to enter the market.

in itself the withdrawal or deposit of the cryptocurrencies does not directly affect the price of the coins or bitcoins but directly affects the traders' sentiment, many look at how many bitcoins enter or leave the exchanges and from there they start with their market strategy, obviously not it is a certain rule, the market sets the price. there are many chained situations that affect the price, for example whales sometimes manage to dump or pump with large capitals

No one controls the price and there's no person capable of turning the price into nothing as well. Therefore, everything you see in the exchanges is just the norm now and when the price will increase and decrease, that's because the liquidity of transactions is flowing and sometimes when there are lots of people that are massing to buy bitcoins the price will increase but no single person can make the price decrease unless he is a multi-billionaire and want to sacrifice all of his wealth just to hoard bitcoins and there is no person who is in his right mind would do that.

It depends on buying and selling bitcoin is a decentralized currency, no human controls bitcoin, nor does any government control it, whoever has it in his wallet, controls it, if the selling pressure is high, then bitcoin is strong and the buying pressure is high.  Ho to pump hota hai Well it is true to pump bitcoin but cannot control it, whenever bitcoin is live then its value demand is very big.

Bitcoin price is ultimately controlled by us who puts faith in what it can do with what it can offer. As of the moment we see it as an asset but it has the givings of a bona fide payment system and currency. I don't know what people will think of bitcoin in the future but one thing's for sure, if bitcoin remains relevant in the future there's a good chance that it's because of the people once again and not bots crunching ones and zeroes. I can't even think of such a scenario being viable to this day.

The price of Bitcoin fluctuates based on people's demand. Bitcoin price does not fluctuate with electronics. For example, a news portal that a country will accept Bitcoin spreads to everyone and people see it and start investing. Then everyone will want to invest. For this, the price will gradually increase. People will invest from that high position. At some point the price of Bitcoin will increase a lot. In fact, the price of Bitcoin fluctuates based on people's investment needs. Those who think that the price of Bitcoin can be driven by electronics are completely wrong.

Since the op is asking for personal views, I think that human activity is the central factor to the price dynamics. There are times of stagnation, times of panic selling triggered by some news, and times of optimism and active buying out of FOMO. All of these impact the prices, and the prices are a direct result of the buy and sell orders, and what sort of prices allow filling the orders because people are willing to buy or sell at those prices. Technologies just react to these changes and the prices are constantly updated based on human activities.

What controls the price is far Greater than what humans can imagine. It's infact beyond human control. But it's possible to reach a consensus on price limits if they are reasonable and won't create more problems for the Network and society. Always remember the deflationary principle while considering your good reasons to put forward. So far, humans or even computers have been unable to put forward something that is reasonable or superior to reasons that currently dominate.
Same applies to Agric, Gold etc... They would be able to "control" the price of Foods or Gold if they want affordable foods for  the masses, or need affordable gold for their industries. But if you want the price of gold to skyrocket and break whatever limit that is set for it, you have to use a reason that is superior/better than the "industrial uses" reason.
Once you have good/better reason your wish may be granted by the ONE who actually controls things. HE could cause demands to increase & supply reduced in the case of Bitcoin.

No, there is no central authority in charge of regulating the price of bitcoin, and this is the only justification given for calling it a decentralized currency. The demand and supply of investors, much like what we are seeing now that many banks are having problems, is what drives the price of bitcoin. This has led to an increase in price. Additionally, bad news like exchanges collapsing or a government threat against bitcoin or another cryptocurrency causes investors to withdraw their holdings, which lowers the price.

Crypto prices fluctuate due to demand and supply from people who want to profit from crypto so they buy and sell at the price they want.

And even though the price is already high, if there are still people who want to buy it, the price will still increase. And what drives its price is the desire of humans who trade bitcoins for profit.

So no one can control the price of bitcoin, especially since the price of bitcoin is now very high. Maybe it could have been a few years ago when bitcoin prices were so low and altcoins were so low that people with a lot of money could control one exchange.

Bitcoin price is controlled by supply and demand, obviously, it is controlled by the action of people setting up buy demands and sell pressures.  It is known that people who wanted to cash out (those who convert Bitcoin to fiat currency) add on the selling pressure making the price of Bitcoin to plummet depending on how huge the sell pressure is.  On the contrary, those who add on the buy demand eat out resistance which makes the price of Bitcoin uptrend.  Though there are cases where the condition of markets is affected by bots, still these bots are set up by people according to their likings.

Regulations are set up by the government but it is only in effect on Bitcoin usage and acceptance. Bitcoin is a free market and there is no regulatory board that controls its market flow.  This is one reason why Bitcoin sometimes is subject to pump and dump when whales decided to either sell their holdings or scoop more Bitcoins for keeping.

Actually, that's not entirely wrong. Bitcoin is also influenced by electrolytic technology although only a few percent.
We should also know that Bitcoin is based on Blockchain technology that is encoded with mathematical algorithms in a globally distributed computer network.
It will also play a role in maintaining the security and integrity of the Bitcoin system electronically.

And for some bots that are used by other people or trading companies, they are just bots that execute based on what has been ordered in it.

And the interaction between supply and demand in the Bitcoin market is the main role that affects the price of Bitcoin.
Some of them are also about government policies, economic events, good and bad news, and global market conditions. 

Let's start with the basics - price is when demand meets supply and a deal is made.
That's when the price is formed. It's the same in cryptocurrencies. It is the consent of one person to buy bitcoin at a certain price and the counter desire to sell it that creates the ticker that we see on the chart. It would seem that such a simple mechanism cannot be broken, but there are manipulations of the so-called Walls. This is when a Fictitious volume of supply or demand appears. And this psychologically intimidates people, which is why they do not buy or sell. At the same time, of course, this affects the price.

The simple formula is supply and demand mate. That’s the basic formula which gives rise to value. This is applicable to almost everything in this world that’s tradable. For example, we have plenty of iron in earths crust so it’s not rare and that’s why value isn’t much as compared to let’s say gold. We already know gold is rare and finding it is big task however demand is huge. It gives it more value.

In similar fashion, fiat has been around since long while bitcoin is new technological advancement through crypto graphy. Bitcoin that’s why got more attention with the time, it’s rare and limited in supply while demand is high all the time. That’s why it’s getting valued.

My opinion is that the daily movement of price is controlled by traders.  They digest the news and then try to trade it daily as if Bitcoin was sensitive to whatever was going on in the news.  Ironically, these traders are the ones that move the price based on this news.  Zoom out a little though and it becomes clear that Bitcoin's halvings scheduled every 4 years dominate control of the price.  Traders get to decide the little daily movements, but every 4 years we see a massive jump, not because traders or news has had an effect, but because of the way Bitcoin is coded to reward miners with block rewards.

Bitcoin price is form when demand and supply meets,Bitcoin is a digital currency that is perfectly work online as a means of payment and also trading and investment as it applies, Bitcoin does not have a central authority. The bitcoin network is peer-to-peer, without central servers. The network also has no central storage, Bitcoin price is controlled by supply and demand, obviously, it is controlled by the action of people setting up buy demands and sell pressures. Cryptocurrency is not controlled by anyone

What happens when price falls as a result of withdrawal is just simple panic and that typifies market reaction in the negative. A lot of investors who aren't chart readers take their cue unnecessarily from what they see others do, whether good or bad. So, they find others selling; they also sell. They find others buy, they FOMO and buy  It's a ripple effect that is capable of causing panic selling or frenzy buying. Price will expectedly crash when supply gets higher than demand or rises because demand gets higher than supply. It's a natural market dynamics that fixes price not anyone.

Nothing controls the market price other than demand fromd the majority. Well, if some people would point out whales or large investors in particular with 'waves' on the market price, that is just temporary or short manipulation. The continuous movement in the market value depends on the interest and investment actions of people in this industry. What contributes to demand are factors such as news and beliefs such as with patterns or cycles in this industry.
The size of the network or chain just determine how huge the community is of a crypto. But other than that, there's no such thing other than demand, which controls or even affects the market price movement of not only Bitcoin but all cryptocurrencies. A domino effect is the pattern which would explain it all as characterized by demand and supply in this industry in general.

Bitcoin is not under the control of anyone and no one can increase and decrease its price but it is effected by the demands of individuals as more people desires to buy bitcoin it will have good impacts of price.

The news also play a significant role in changing the price because if positive news arises more people will buy bitcoin and its price will increase and if news originates in opposite direction then its effects the price differently.

Neither humans nor any technology has control on bitcoin but as we talk about the demand so we can say that indirectly human desires and human demand can have impact on Bitcoin's price.

Because of the decentralization of Bitcoin there is no center authority who control the price and movement of Bitcoin, it's true that some how number of  people(whales) affect the price of Bitcoin due to number of Bitcoin supply they have, because when someone has a large number of Bitcoin and he sell it simultaneously then we can see a dump in Bitcoin and the reason is simple supply and demand formula,
News play also an important role in Bitcoin price because due to bad news like exchange hacking produce negativity in market as results price drop also positive news does opposite to it.

Even other assets that are not decentralized do not have a central authority which determines their price, humans took a long time but we finally understood the law of supply and demand, and once we did we realized how useless it was to try to do this, one very famous example are price controls, in which governments try to keep the price of food fixed so it is affordable for people during a period of high inflation, but if governments do this then the businesses selling that food will go bankrupt, and then there will be an even lesser supply of that food, which will increase its price on the black market.

Bitcoin is controlled by the public's outlook and faith. The more people that are believing in bitcoin and are cashing in on that belief, the more valuable it becomes. Electronic Technology in the sense that bitcoin has something it could offer technologically that other commodities couldn't could still play a part, but if you're talking about bitcoin's value being bloated and artificially pumped by botters, that is not the case. This isn't to say that bitcoin has a central organization that decides the price, but it's more like a consensus that the general decentralized and democratic public agreed upon over years of service.

The process is done by the electronic system, but the market is made up of the human beings. Just the system running and none to use it, then it doesn't hold any value. When the demand keeps rising, so will be the increase/decrease in the price. Apart, it is known that the users holding the major volume have got control over the market to some extent. This way the market is with the human beings whereas the technology things were with the electronic system. The electronic technology part gets importance when the number increases tthe technology need to be effective to withstand and here the technology does it. So, combined move seems to be fair for the effective growth.

In fact prices of all trade-able assets including crypto currencies are primarily determined by basic principle of economics: Supply and demand. In a decentralized market like crypto there is no central authority to regulate or control prices, instead it is determined by collective actions of buyers and seller. However, when it comes to trading crypto currencies, human agents and technologies are involved to execute trades. Human agents, such as traders make buying and selling decisions, while algorithms & bots execute the trades.

The Bitcoin/crypto prices are estimated by gathering a bunch of buy/sell orders, which are made on the big crypto exchanges. Why is this so hard to understand? The price goes up, when there are too many buy orders and less sell orders and vice versa.
Of course, many traders are using automatic stop loss orders and there are some traders, who are using trading bots. This leads to bigger automation of the trading process, but that's not a big deal. What do you mean by "electronic technology"? This sounds like a boomer term, made up by somebody, who doesn't know how to use a computer. ;D

Bitcoin's price is determined by a combination of human agents (traders, investors) and electronic technology (exchanges, algorithms).

While that's true, it usually only affects a small portion. It's basically a short term noise in the price.

The long term trend is usually more interesting, and usually follows the halvenings, and overall increases its scarcity, making it more valuable.