Bitcoin Forum

In the foreign currency market, I recently experienced the BTC/USD volatility effect, which prompted me to investigate what makes the pair (bitcoin) so volatile.
Volatility is the evaluation of how much value of a financial asset fluctuate on a particular time.
Averagely, Bitcoin volatility ranges between 1.68%_4.54%, where Wednesday is the most volatile day compare to other days and Saturday which is the least volatile days.
The significance of volatility is that an asset is risky to own on any particular day, Its value could significantly increase or decrease.
There are a number of causes for bitcoin's historically erratic price behaviour. By knowing the elements that affect its market value one can choose if to invest in it, trade it, or keep following its advancements.
Bitcoin's price; just as other commodities, stocks, other products and assets rely upon supply and demand.
As it is an asset which traders and investors have swiftly adopted, its value is heavily influenced by opinion about price changes.
Investors concern are also influenced by media sources, influencers, industry titans with strong opinions, and popular cryptocurrency supporters, which causes price volatility.
Factors that create bitcoin volatility.
1. Demand and Supply
2. Investors' and user sentiment
3. Government regulation
4. Media blitz

• Bitcoin demand and supply
As much as any other aspect, demand and supply determine the pricing of the majority of asset. The quantity of coins in spread and the price at which individuals are prepared to pay have a significant impact on the value of bitcoin. The total quota of coins in the cryptocurrency is set at 21 million by design; when the circulating supply approaches this number, values are projected to increase. Source: www.c[Suspicious link removed]m
• Bitcoin investors reaction
Since the quantity of bitcoin; the most popular cryptocurrency is getting more scarce, demand for it is rising.
• Government policy also influenced bitcoin volatility
• News/Media outlets
In the news, or media, we see different analysis from different “experts” predicting the future movement of Bitcoin, with that action, holders tend to hold more or even increase their shares.

In a simple understanding, the main reason of the volatility is the relation between Circulating Supply and Market Capitalization. It also depends on the number of holders of a currency. If we compare Bitcoin to other cryptocurrencies, Bitcoin has less volatility. It's simply because the market cap is so big and it's number 1 cryptocurrency base on the market cap. This is one of the reason why Bitcoin is the safest cryptocurrency to invest with. Time will come that Bitcoin will be more less volatile where the establishments really accept Bitcoin as payments.

Something like this is not happening for the first time, bitcoin is known to be a highly volatile cryptocurrency and what we have to consider most is the market supply and demand for bitcoin, the value of bitcoin if we are to consider that one as well isn't stable in recent days and the exchange rate is increasing more in value with BTC/USD, this is another good reason why holding bitcoin is more valuable than any form of currency because you will miss out any exchange rate opportunity than when you're holding fiat currency alone.

Though above factors matter a lot, I am sure we know the fact that it's decentralized currency thus making it vulnerable to the big changes if significant group of people starts to sell it OR buy it. The power to make this change can not come from few groups but vast majority of people together plus the volume of the Bitcoin getting sold or purchased..

I think "no control" is something that matters a lot in this regards.

The volatility effects on the market can be seen with the reactions like FOMO, FUD's, selling under pressure when markets not right and buying in the opposite case.

Since any amount of Bitcoin can get liquidated at any point, there is high chance that Bitcoin can either fall or raise based on those actions.

In my understanding the factors and the volatility are directly dependent, anything can happen.

As per my understanding, Volatility goes mental when there is a Bitcoin news spreading around like a forest fire, that time is the best time to take a trade as more the volatility, better the returns. In Bitcoin, it can happen for some reasons however the main/primary reason is the rumors or the news related to it. Other cryptocurrencies do affect the price of Bitcoin like ETH, BNB etc. All of those are co-related to each other.

I think volatility of Bitcoin is only weird when a person isn't used to cryptos and is way more used to thinking about volatility regarding fiat currencies. Yeah, Bitcoin goes up and down much more than typical fiat currencies on a daily basis, but significant increases or decreases are actually not that common, IMO. Bitcoin can stay within a certain price range for months, so it's not like the volatility is making it truly a wild card. It's around $30k today, which means it can be a bit closer to $29k or to $31k tomorrow, but it's pretty rare to see a change that goes beyond such differences.
And while for some volatility is perceived as a risk, to me, it shows that Bitcoin is alive, that the price isn't regulated. Moreover, many make profit precisely because of volatility at traders, so they wouldn't be thrilled with more stability either.

Bitcoin's maximum supply is 21 million. Some other cryptocurrencies have their hard cap, examples are Monero (XMR)  (https://decrypt.co/34876/why-is-bitcoins-supply-limit-set-to-21-million?amp=1) and Dash with 18.9 million, and XRP and Tron (TRX) with a supply limit of 100 billion. Some other cryptos have unlimited supply limits.

Bitcoin is the most stable cryptocurrency. Other cryptocurrencies are highly volatile because their prices can go very high in a few minutes and nosedive in another few minutes. But we hardly experience such with Bitcoin. Bitcoin is when more stable than some fiat currencies and even my country's currency is more volatile than Bitcoin. I can say that Bitcoin is quasi-volatile

Bitcoin will likely remain more volatile than most of the fiat currencies, as it has a fixed supply and is lacking any central authority (such a government or a central bank) to keep its price under control.
There's also no guaranteed demand that fiat currencies have (e.g. you have to use them to pay taxes), which bears extra uncertainty on how long an it drop when market panic kicks in.
But I wouldn't worry too much about volatility at this point. For many traders an investors, this is viewed more as a feature than a bug. The risk is higher, but so is the potential profit yield.

And you expect that they're going to keep on coming telling different predictions because that's what they're up to. You're going to see them tell such predictions and will mention that they're an expert in some point.

Although coming to the point that these experts probably know little to nothing and they just joined the bandwagon, thus they're giving predictions that makes them a good investor.

They're all for the clout and they've got no credibility but only the media to cover them.

Most of them are self-proclaimed experts and they are just giving their own predictions.
Just like any of us, they are also humans trying to make a good guess for what's next in this market.
And most of the time, they only predicted a good one, and they try to paint that they all know about what's next.
Volatility seems to be not going away anytime soon in this market, and that's the reason why a lot are coming into this market.
This factor is the attractive feature as they can earn profits at a short period of time if they know what they are doing.

Volatility is not bad, it is what characterizes this asset and it is what allows you to win at any time, when it increases of course, and perhaps some who decide to bet and use it, for example, in trading, are a little more exposed to losing or increasing their investment, but it is all part of the magic of this currency, even more so if we analyze it, fiduciary assets also have this volatile system, it may not be as marked and notorious as bitcoin but it is not as stable as is believed, or because they believe that when comparing a centralized currency, such as the dollar, which is apparently used as a replacement to counteract inflation in a country, one notices the ups and downs it has, if it is supposed to be stable it must remain fixed, right? ?.

What i mean is that the volatility of bitcoin and other cryptocurrencies, as well as centralized ones, plays an important role in the market, and allows people to take advantage of this to generate more, and.... how do they do this?, investing.

Since there is no central authority and censorship in the Bitcoin market, it is highly likely that the market price will have high swings depending on the supply, sentiment, and demand of the market.  The high volatility of the Bitcoin market is proof that Bitcoin is still in the stage of developing and propagating.  The good thing about the volatility is that Bitcoin can attract traders and speculators to invest in its market while Bitcoin is establishing its market value as adoption and different government reactions such as rejection and acceptance commence.  Volatility also gives Bitcoin popularity since those who grasp the flow of the bitcoin market will definitely profit from it.  And most who profit oftens shares their experience and that sharing also hook many investors interest.

True, they do make out their own speculation and on the time it do hits then they would really be boasting out that they do really know on how the market behaves or works on which it is really that something that very common nowadays. This is why it would really be that better that you should really be that mindful with your own market approach on things on which not really that a fan on listening out these kind of speculative approach on the time that it turns out to be that looks an assured thing to happen but ending up that it is really just that the same overall. Volatility is something that would be in default since this is a market on which it does really involved moving up and down of prices on which it is really just that normal that you could neither make profits or losses with those movements. It would be entirely be depending on how you would really be
gonna able to deal up with things whether you would really be selling out on a certain point or would be buying out on some moments and vice versa.

How true these words? I mean, what makes Bitcoin more volatile on Wednesday and less volatile on Saturday? This doesn't make sense since bitcoin exchanges are not closed 7 days a week.

Yes, this may be true in the forex exchanges, because it is closed on Saturday and Sunday. As for the cryptocurrency exchanges, I do not think that this is accurate.

During my experience in bitcoin trading, I did not notice that the bitcoin price is more volatile on a certain day of the week. This may happen by chance some times, but not always.

In principle, price movements are determined by the difference between supply and demand. But the volatility of bitcoin and cryptocurrencies is greater than that of traditional assets because the market cap is so small that manipulation becomes easier. Bitcoin has the largest market capitalization and accounts for half of the cryptocurrency market, but its capitalization cannot be called too large. For a potential asset like bitcoin with a market cap of just $500 billion, it's too small and insignificant compared to the capitalization of gold or stocks.

Volatility will decrease as manipulation disappears, and to fix that, bitcoin needs to be more accepted, which leads to a larger capitalization and will be harder to manipulate.

Yes. OP is right. This is very influential, especially for Users and their trading physiology, where the factors that the OP mentioned above contribute to the volatility of market prices, especially BTC.

This happens very often. If we pay attention to market performance, when the price moves down more and more drastically (correction) it will cause high selling and if it continues it will cause panic, fear of other bitcoin owners so that more and more parties don't want to lose. well, what in their minds would have taken similar action to immediately sell their bitcoins. As a result, the price of BTC can be corrected and continue to fall.

This volatility in price causes the interest in Bitcoin to increase. At the same time, it allows those who want to make a profit in the short term. This also contributes to the fact that Bitcoin trading is always active.

All of this will continue for a long time to come. When Bitcoin is generally accepted in societies, the volatility in price will decrease and it will progress more steadily. I think this way. I find the current volatility to be beneficial for Bitcoin. Because someone who has not invested in Bitcoin can see this volatility and want to make a profit and invest in Bitcoin. This gives more people access to Bitcoin.

As the US presidential election approaches we are seeing more of these last two factors influencing bitcoin volatility. There is a growing number of Democrats who supports bitcoin and in the past month we have witnessed an increase in crypto lobbying and awareness. Certainly, outcome of the election would have a magnificent influence on the crypto bull run. One of the most out spoken of the candidate who is pro-Bitcoin Robert F. Kennedy Jr. (RFK Jr.) he is already advocating for DeFi and self-custody rights. These are factors including how news outlet choose to analyze it that would add to bitcoin volatility.

Maybe but we have seen Presidential election like Trump winning and says that it is good to crypto or bitcoin in general. But nothing happens, so for me, the election could have short effects as far as volatility of bitcoin is.

It is still based on supply and demand that has basically affected how the price is moving. And of course, negative or positive news that comes along. But the good news is that the market is on a cycle and so maybe next year, it will still be volatile but it could be on a positive side as we are going to see a bull run.

Yes, they're no better than us because we're all the same that has an ability to give predictions.

But the difference of them is that they can pay a lot of money for them to get exposure from these media. And whether they talk shit or not, as long as the media wants to publish it and they get paid, they will do that.

That is the reason why many people don't listen anymore to random people telling this and that about the fate of Bitcoin and its future price.

I see bitcoin is paired with a major currency which happens to be the dollar...is it possible you experienced the volatility during NFP (non-farm payrolls report) ??

I think these pointers given here pretty much sum up what influences how our crypto markets behave...

Though external factors  such as Politics, Environmental impact, technology etc have proven to influence the volatility of bitcoin as not everything needs to be directly related to cryptocurrencies.

Well said. When the market is volatile, the returns are better. But many newbies forget that along with better returns, high risks also comes. So if you are someone who is new into this field and gets attracted towards Bitcoins or market by seeing the volatility, then let me tell you that, before jumping in, do proper analysis, research and risk management.
The price of Bitcoin really affects by the news and the masses. The news or the rumours make the investors crazy and they do quick unwanted decisions. This fluctuates the price all the time.

Bitcoin is becoming more stable lately and that is all due to fewer activities in its market, not in the like of daily trading volume but price negotiation and settlement, Bitcoin has settled within a price range doing a cycle of up to 3-4 months which is long enough to declare Bitcoin stable because compared to other coins whose market volatility are high and prices are changing frequenting either in an uptrend price movement or downtrend.
The same can not be said for Bitcoin and that is because of Bitcoin's value and scarcity coupled with Bitcoin's independent decentralized network that disallowed control of the market.

It's going to be obviously a difficult thing to handle when you are not used to it, but it is not really unheard of neither. You should be able to do it if you can and it shouldn't really be a problem in the end neither. We are talking about something that will take a while but it is not something that will make it near impossible for you to make a profit from neither.

I believe that if you could end up with a good result from some of the volatility then you are going to start enjoy it. The problem with it is just the first time you see it, and when you see it for the first time you are going to be scared by seeing it and the way it moves and you will need some time to adjust your brain to this much movement this quickly.

Volatility doesn’t matter so much if you have a long time frame and aren’t worried about day to day movements. The news agencies, exchanges, traders, all benefit from volatility. They want you hanging on every piece of news and trading every event to create volatility. News outlets benefit from advertising, exchanges benefit from trading fees, traders get more opportunities, and the suckers that fund it all are traders seeking a quick buck.

Dealing with the volatility is a big challenge for every trader emotionally because it can ruin their strategy so as a trader you should be able to adjust accordingly and always have your selling price and the cut loss price with this, you can deal with that volatility professionally and you'll not be affected by this emotionally. If you're into long term trade then I think volatility is your least concern since you believe for the future price and you're confident about that project and you choose to hold long term.

Bitcoin is known for being a volatile cryptocurrency and that's how it will always be, we should forget about the cases of instances whereby we experience dip and bull in bitcoin market and we often say much on the bear than when we have the bull, have we even consider it that it was during the bear market that we have fear of missing out to be very common, even some people holding will try to sell if think otherwise, but bitcoin has always been this volatile base on it demand and corresponding supply and the two will always have effect on the market.

Volatility is inseparable, it will surely be there forever for bitcoin trading. That is why everyone is warned about the risks of trading and investing, this is meant to let them understand that volatility can be both detrimental and profitable. Traders and investors must properly understand price volatility in order for them to benefit from it. After all, volatility is needed by traders in order to take advantage of the market.

Bitcoin has had its volatility for a long time, so it's not surprising that the price goes up and down a lot, and even when the price falls, we wouldn't expect it to hit a lower price. We often talk more about bears because we want to know how deep the price analysis people are doing so we can be prepared to buy at that low price.

You don't need to worry about the price if you are used to volatility. You just need to know when to place a purchase order and leave it until it is filled. Don't worry if the price drops again, maybe even down to a few percent, because that is a bonus for you to buy bitcoin at a low price.

Broadly speaking, high volatility is a characteristic of Bitcoin, and with this volatility,
the price will fluctuate which can be utilized to generate profits from each price movement.

High-Risk High-Return, of course, is the tagline that is always attached to crypto.
It will be very fast to get profits, but also faster to experience losses.

Everyone who enters crypto must be aware of this high volatility because it will be a self-borne risk.

How was this data gotten, is it proven or verified or it is the opinion of one trader/written. I can agree that bitcoin volatility averages in the range of 1.68% - 4.54%. It is understandable and believable. But Wednesday and Saturday being the most and least volatile days respectively, I have no idea of that claim.

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The volatility of bitcoin is an advantage and also disadvantage to the industry and as well as bit holders. I can say it is only an advantage without disadvantage to day traders because coins must be making significant moves for day traders to profit.

Honestly, one of the reasons we invest in bitcoin and crypto is because of its volatility. Due to volatility, we can make higher profits than other markets, so high volatility is a good feature, IMO. But volatility is also a factor that keeps bitcoin from becoming a currency, but for investors, that's what they care about.
I always wonder, if bitcoin becomes stable and not so volatile, will people still use it for other use cases or will they find another asset to replace it?

It is good to learn if Wednesday is the most volatile and Saturday is the least. I bet that it has something to do with the fact that we are back at work and just underway already for a while so we look at other things, on Mondays and a bit on Tuesdays we are handling that weeks new stuff, and on Wednesday we do not have that much job but still at work so we trade a lot, and on Saturdays we are out, it's the weekend and we are going out so we do not trade and instead just go have some fun.

This is why it's quite important to do something that will benefit us the most. I believe that it can be done a lot better and we should be considering it a lot bigger and better in the end. I get that it's not that great but it can be done.

It's fair to say that bitcoin doesn't have strong volatility this year. This suggests that bitcoin has had a sideways movement over the past few months. In such a case, it becomes difficult for traders to make successful trades if it is not within the trading day. Volatility will have to return when the real uptrend starts.

If that does happen, then Bitcoin will be slowly forgotten.
The uniqueness of bitcoin from other digital currencies is due to its high volatility which results in price fluctuations.

Bitcoin is not like stablecoins or like gold, Bitcoin has its own characteristics and that is the attraction.
In addition, Bitcoin is truly decentralized, still using the POW network and not moving like most Altcoins that move to the PoS network, where PoS is semi-centralized.

Bitcoin is truly unique and nothing has surpassed Bitcoin as the most decentralized digital currency today.

None of OP's valid data includes the source of where the data is pointing to, so I think it's just his assumption.
I don't think so where there are certain days that get unstable prices? Is it more on weekends?

Volatility is inseparable from trading or any type of investment in cryptocurrency, traders will find it more enjoyable to see the price move significantly this makes a slight change where they are profitable.
Investors only need patience in terms of holding their bitcoin, nothing more than that except traders who are always alert when there is a significant change.

Yes exactly news have a greater role in the volatility so successful will be those who take benefit from volatility and not get feared with decreasing price. Both bullish and bearish season are to take the advantage because both have its own role in crypto world.

When due to some news bitcoin fluctuates then at the same time other crypto coins also follows the same trend which suggests that all crypto coins have relation with that of bitcoin therefore bitcoin is getting trust of everyone.

News are not true all the time but effects the industry of cryptocurrency all the time, bad news moves the price negatively while good news moves it positively.

Wayback into those previous years on which fundamentals or traditional economic situations or statuses wont really be that affecting crypto space or simply its really that independent and doesnt really make out some

significant effects into its price but now we are moving in an era or years on which it is really that becoming more significant because whenever there are economic kind of news or happenings which this market is really that having that particular movement whether it would really be negative or positive on which we can really be able to tell that it is really now on making some effects on the time these news or fundamentals would come out.This is why it would really be that so hard on trying out to neglect or dont pay attention when it comes to fundamentals.

This is why on the time that you do set your foot into this market then it would really be just that right that you should be having that in preparation in between fundamentals and technical
which you could really be eventually be able to have both things for you to be able to handle out yourself on this unpredictable market.

People have been too reliant on the news and easily believe it without any verification if whether is true or false. This is a big factor that affects the volatility of Bitcoin which is why we need to become updated to whatever happens around us. When there is too much FUDs/negativity spread, people become panic and cause a sudden drop in price but if there is positive news, demand is high. It eventually told us that manipulation can easily win the minds of the people and so no way we can see a stable market price but the volatility keeps going.

Indeed - this is one of those things that may not be very profitable for a trader. Those who tend to panic over FUD news are just more likely to find losses than gains - but if they understand the trading strategy well then cut losses should always help.

Volatility is caused by supply and demand ^{[one of them],} but there are many other points that can cause volatility to exist. Speculation - the world's financial situation - politics - market sentiment and others can also influence prices, but traders must be wise enough in adjusting their trading strategy so they can minimize losses instead of panicking.

Honestly this reminds me exactly of the price action in 2015 and 2019. Basically absolutely no movement day in and day out. Every single break is a head fake. The day traders are the only ones that can make any money in this market.

I guess it’s good. You can call it the accumulation phase and we will eventually breakout. However this is testing a lot of peoples patience and many will simply leave crypto for stocks due to boredom.

I also think people will gradually forget and limit using bitcoin if it becomes stable because most of us enter the market for profit and not looking for privacy. We'll still use it, but it won't be as popular as it is today.

If comparing bitcoin and altcoins, bitcoin is still the best in every way. But in terms of volatility, bitcoin is gradually more stable than altcoins, and that is why many newbies are not interested in bitcoin, and they rush into altcoins in search of bigger profits. But the way I see it, people who invest in altcoins after a while will also return to bitcoin because investing in altcoins is not as profitable as they think.

The "crab market" is just part of the game and as you said, it could be an indication of the accumulation phase. I don't think any serious investor would abandon crypto just because of the boredom. As long as there's no reason to believe the next bull run will not happen - I think we're safe.
And of course, if people leaving due to the lack of action was true, we'd see the price tanking rather than holding still.

The volatile nature of bitcoin is good and is the best amongst other cryptocurrency because it is decentralized and gives no room for the government to control it. As long as any project is centralized, there is higher possibility of manipulation in it just like the way fiat currency and shitcoins can be manipulated.

You shouldn't depend on what this so called expert speculate on bitcoin price,that was why this forum was created to teach people on bitcoin. It is better that you DYOR and learn here as most experts that they claim to be have little knowledge on bitcoin. If you follow bitcoin history and understand its cyclic movement you can make your own speculations but some times some bad news or good news by government can also cause the price to dump or pump.

As we have seen all week long and a bit more than that, the price goes close to 30k and then close to 29k and then close to 30k and the.. well that continues like that non-stop. The volatility is there but the amount is very little and that is what I want to talk about, its not that much all the time. Volatility does happen time to time but it doesn't happen all the time, we just end up with bigger volatility during bear and bull runs. However, when we are not on a bear or bull run, we do not end up with any of that, price gets stuck and keeps on being the same price again and again. This is why there is no need to worry about the situation and feel a lot more comfortable about it.

I am in this market because i know that crypto markets have high volatility. If crypto markets had low volatility and market intervention, they would be no different from stocks and stock markets. One of the main reasons for volatility is that Bitcoin is decentralized and affects the entire market with its price movements. I have to say that in a market that is closed to intervention and open to manipulation, the biggest impact on prices will be volatility. Anyone who understands the dynamics of the market knows that Bitcoin and most of the major coins have healthy volatility.

If you judge the volatility of the market by shitcoins, you don't understand the market. The impact of negative news and manipulation on volatility is no longer felt as much as it used to be in a bear market and we see a market that is on track. Which i consider the beginning of the bull market in the halving period, the impact of volatility is still very high and that's what attracts people. Periods of high volatility are periods of excitement and increased traffic in the market. As the halving approaches, we will see volatility peaking.

Actually I will agree with you, but I know quite well that the marketcap is been determined by two things, which I will portray that it's the demand and supply, of course is large and bitcoin serves as the dominance in cryptocurrency due to it has a very good potential and good reputation, even though its been taken as general payment option it will still be volatile because its impossible that generally bitcoin will be adopted and all nations legalized it as payment option, what we are narrating in bitcoin is just an assumption not real about bitcoin values,  bitcoin volatility depends on the gravity of the demands and the supply as well the holder as you pin points earlier.

The interesting thing about Bitcoin is a fluctuating price, when the price of Bitcoin is very fluctuating, it becomes a good opportunity to get profit, even when the price is red like now there are still many people who get profit, the most important thing is to always sell with profit and not panic.

I don't think high volatility is an inherent feature of the bitcoin market, it is expected for volatility to drop as the market cap increases and as the market matures (clear regulations and less legal uncertainties).
And I'm not sure if it's still appropriate to consider stock markets as stable and predictable. Recent years proved they can be as volatile as Bitcoin, with some of he biggest stocks noting huge drops, i.e. Netfilx going down by 75% from late 2021 to mid 2022, or Tesla dipping by 63% (2nd half of 2022) and 72% from its ATH, but there are plenty of other, lesser known listed stocks with bigger drops.

You should've been here around 2017–2018 to observe what volatility is. This day, it's almost like Bitcoin sleeps throughout. Those days you would check charts and be dismayed that Bitcoin had done over $5k in a day, either in loss or in gain. I know someone will say the market is ranging ATM that's why Bitcoin seems static. I don't speak for the moment, it's something I've observed over a period of time for a while now even before it got itself in this range.

The easiest thing that affects Bitcoin (or alts) volatility is news, nothing else. Any impactful news, whether positive or negative will effect direction immediately it's released. It doesn't matter where price was headed before. Bitcoin is more fundamental than technical analysis.

Generally, there is not this much stability in the market because the market is either in the bear run or the bull run, which means it is either going down or going up, this thing only happens once in a while when the market gets totally stagnant as it has become right now. However, it is obviously nothing to worry about, those who want to buy or those who want to sell both should have some patience and keep holding their assets until the market moves.

The current market is not bad for buyers though because it isn't that high, and as the bull run is expected to occur next year, if the price starts going up from this point, this might be the bottom for the current market until the next cycles come when the market enters the bear run once again.

Without a doubt the last quarter of 2017 and the first quarter of 2018 allowed us to see a period of extreme volatility, and while bitcoin may present bigger movements in the future due to its higher price there is no doubt the movements were more extreme back in those days, which in a way explains why so many people were unable to keep holding their coins and sold them during the crypto winter that followed and they never returned despite the new bull market that took place after it.

Bitcoin volatility is one of the highlights of Bitcoin. Because of this volatility, many people use it to get income from profits, at least it will be successful in trading. And of course, this will also provide benefits for both short term and long term investors. Imagine if there was no more volatility in Bitcoin, and Bitcoin became a crypto stable coin. This will not be attractive enough with a stable Bitcoin price like that. So it's difficult to get a specific price target when trading or investing in Bitcoin. So, as long as we can take advantage of Bitcoin's volatility, I'm sure that most will still like it and don't expect the price to really stable.

Broadly speaking it is so, Bitcoin Votality will gradually stabilize, but seeing how stable Bitcoin is depends on how market demand is.
Bitcoin's volatility will also rise and be more aggressive so that bitcoin market movements become more active.
As will happen in Halving, this will make Bitcoin's volatility increase

When Bitcoin has shown a decline in dominance, and volatility is quite stable it is an opportunity for Altcoin to party.
Loss or profit in altcoins depends on how each person trades and what altcoin they choose, it will greatly affect.

This is included in Fundamental Analysis, the market is affected by some news that appears either a trend for FOMO or FUD that is deliberately raised.
Technical and Fundamental analysis both have continuity, in time it will synchronize.
It also looks at the history of bitcoin travel, usually some FUD that appears is always repeated every year or every increase in Bitcoin that will reach the highest price.

While bitcoin's decentralization gives us a lot of utility and use cases in our lives, there's no denying that we care about returns more than anything when investing in bitcoin. Money is always something we care about more than anything in this world.
To be honest, I also never expected bitcoin to become stable, which would make it less attractive. Bitcoin's volatility is really great for investors, but it makes many people who see bitcoin as a currency feel uncomfortable. It is bitcoin's erratic volatility that is one of the reasons it has failed to become a currency so far.

Bitcoin can't see new ATH everyday. Market has to take correction. If you see price chart of bitcoin then its very much clear that bulls do take over but there time can't be predicted. Having said that current price of bitcoin is not bad at all, its very much stable in 29 to 31k$ bracket. Halving is coming next year and this is the best time to accumulate bitcoin before the bulls take over after halving.

..and another one that's hot now and we know that previously BlackRock has filed a bitcoin ETF and it was considered a move that many saw as a game changer for the industry but, what's happening now is the US Securities and Exchange Commission (SEC) has postponed the decision until 2024 the listing of a Bitcoin Exchange-traded Fund (ETF) by Ark Invest led by Cathie Wood was previously planned for the middle of this month.

So, will Bitcoin be sluggish again?

I wasn't aware of that, but looks like the SEC indeed took advantage of the option to extend the deadline for making the decision from the initial 45 days to the maximum of 240 days.
This doesn't mean SEC have to wait till the early 2024. In theory they can make the announcement anytime before the deadline, but I don't think they'll be rushing.
So far the news didn't seem to have much impact on the price with only small dip in the price. It could get interesting if SEC's announcement gets aligned with the halving date.

Regardless of how low the price changes are, that is still called volatility. You may call it high volatility or low volatility, only thing is that bitcoin was known for it's high volatility. Also, volatility happens from time to time, otherwise day traders wouldn't be able to take a profit if bitcoin stops being a volatile asset for a specific period of time.
The current price movement is caused by the investors being neutral on buying or selling their bitcoin currently, but I suppose people would be accumulating more bitcoins anytime this year to take advantage of the bitcoin halving effect, it would for sure going to cause a significant increase in price.

The market is like a roller coaster it will be going up and down. But we should never have to think that every drop is a bad thing in crypto instead, we consider this as an opportunity to accumulate more. As we usually heard when there is a market crash, many people got panic and sold their coins but not knowing that some people had take this advantage of buying them cheap coins which could give them a huge profit once it pumps back.
Well, as usual, not all will understand and see the opportunity in every market situation because what we had focused on is today but we're not looking at the future outcome.

Does seem familiar and I should chime in as I did sell in the autumn of 2016, of course the 2017 lead up was memorable and I was bullish about the start of Feb 2017 but it was a bit unfortunate that I chose to sell some BTC previously when it was not far off going up so much.     2016 as I remember was not negative at all, it peaked and then got boring as mentioned and a bit of a decline but not severe hence lots of opportunity to sell if you wanted.   I needed to buy something so used the BTC, took a guess it could return down so not too bad a time to sell but it was really.   Never short a dull market, this one is pretty dull so yea its in line with history of BTC I agree.

One of the main things that you would really be able to realize on the time that you do step your foot into this market on which it is really like that riding a roller coaster ride which is really definitely the precise picture
on what this market looks like.Therefore, you should really be making yourself that be prepared on whatever things that you would encounter but this would be mainly talking about volatility. Somehow if we do really talk about its effect then it would be neither a profit or a loss depending on where you do position yourself whether on the bottom or on the peak. You would be finding yourself about the outcome whether its positive or negative. We cant really be able to predict on what would happen as this should be the main thing that we are really that questioning since market is unpredictable.

This is why we are really that prone to mistakes and errors due to unpredictability on which it is really that something normal to be faced on. Only people who are really that good on decision making
and making some analysis on the market would really be always have the advantage but of course it isnt really that an assured thing.

We know that there are changes in the Bitcoin market, sometimes the market will start to fluctuate which causes a lot of losses. But it doesn't stay the same but the volatility will disappear sometime and there will be risk of profit. All investors face the most volatility when the market is in a bear market. But when a bull market re-emerges in the market, the volatility is removed and all investors are able to earn a good amount of profit. Many a times people make predictions with the aim of making their profit but most of the predictions are not right or wrong and they get stuck due to market volatility. Bitcoin has a reputation for dominating the market and is usually able to pay well when volatility ends.

Today is another bad record because the price has dropped by more than 7%, the price is getting farther away from the bull run and it doesn't seem like it will happen this year, bitcoin's volatility is still high, so we must always be vigilant, I use coinbase which gives a warning if there is a price fluctuation high of more than 5% in a day, but we shouldn't panic in facing dump situations like today.

People believes on news and they don't stop to trust because there is no guarantee that the arising news are false or true so believing matters alot. Like that of upcoming good news heard by all crypto investors so they can't say that this news is fake but they will prepare some amount of bitcoin to reap the benefit out of it.

News sometimes appears to be good for investors because of these news the market goes in that direction in which investors wants so should think positively about it as everything has dual functionalities that are beneficial and harmful.

Speaking about public reaction whether they do believe or not will always be questionable and if decisions had been made then it would really be significantly be seen in the entire market and this is why it would really be always better that you should really be needing to have that speculative approach when it comes into your investment decisions because there's no such thing about assurances on how things would turn out. One things for sure that volatility is the key for us to earn some profits at the same time it is the reason for us to lose our investment. This is why if you cant really be able to bare out such condition or situation then its better to skip out
crypto investment but if you are that someone whose prepared on to deal with volatility then it would really be your choice on what you should really gonna do. Effects could neither be positive or negative and
basing up on which price point you had entered on the market.

Bull run was never going to happen this year, this year was meant for recovery and we're still going to have that at the later part of the year, we still have like 4 months before the year ends and that's a very long time for the narrative of the market to change from bearish to bullish.

Don't see red days in the market as a bad day, that's not a mindset of a smart investor. You have to see all red days as an opportunity to accumulate Bitcoin because if you join the crowd by panicking and selling your Bitcoin, there's another smart inventor buying them off you.

Instead of selling, we should be buying and hold until Bitcoin has given us profit to sell. Bear market are for accumulating and we should be expecting days like today in the market that's why we should have fiats available so we can enter the market and buy at a discount of -7%.

It is bad news to people who are planning on selling their Bitcoin holdings but for those who wanted to accumulate, the Bitcoin dump is a very good news to them.  Here is some of the reason:

1. We all know that Bitcoin is highly volatile so there is a huge possibility that recovery will happen anytime.
2. Those who wanted to buy can buy BTC at a discount.  This is also good for DCA.
3. Bitcoin trend is not always downward, once the Bitcoin bull run kick in, those who buy Bitcoin during a dump like this will have a higher profit when Bitcoin starts its record-breaking ATH event.

I don't think it's bad news because before bitcoin was dumped, many people said they wanted bitcoin to fall back to be bought cheaply and finally their wish came true. So I think they were very happy when what they expected happened. But I doubt they will buy bitcoin, or will they be scared and not dare to buy when they see bitcoin falling so fast?

I remember in 2022 when bitcoin dropped to $30k due to Luna crash, and then many expected bitcoin to drop even more to be bought cheaply. And eventually, FTX brought bitcoin down to $15k, but not many people bought in because they were scared and no longer saw it as an opportunity. Many people say they will buy bitcoin, but I really doubt it because there are still many predictions of bitcoin going deeper, which proves that people are more scared than excited to buy.

Your statement about bitcoin volatility is correct and I support what you said above, but I only have to dispute you in one particular statement that you made. You said that for the fact that bitcoin volatility is still high. It therefore means that bullrun is not close and may not happen. This is an outright fallacy or a misconception. For there to be bull run, it therefore means that bitcoin must be highly volatile. If bitcoin is tilting towards stability, how will bullrun be achieved?
All I have to say is that the people that are holding bitcoin should hold fast and try to accumulate more for the coming bullrun.

Even if this year doesn't have any significant drops, there won't be a bull run and that's almost certain. From historical data as well as the macroeconomic situation…all do not support a bullish scenario this year. I even start to think that there will be no recovery at the end of the year when there is news that the Fed still wants to keep raising interest rates because inflation shows signs of increasing again.

People who feel the red market is bad because they bought at a higher bitcoin price or they don't have enough money left to buy more bitcoins. It is not always available to everyone with fiat to invest because as we all know the current economic situation is not very good.

When Bitcoin moved from 16k to 30k we heard that bitcoin is going up because economic condition based on fiat is not good and Bitcoin is the solution. Now we have a dip and there are speculations not in favor of Bitcoin. I don't know from where bitcoin will move from here, but based on my experience with bitcoin I can affirm that this situation is very much normal and there is nothing to worry about. I am not selling my Bitcoins and so should everyone.

Almost the majority of the community here in the bitcoin space knows that it is volatile, in short most are aware of it. So it's not new. The level of aggressiveness of volatility only varies depending on the movement of demand supply and news in the bitcoin industry.

But the volatility that Bitcoin has is a good feature of Bitcoin for any traders to make money, depending on the understanding of each individual who will carry out the trading activity. And it is also possible to lose or lose the capital investment natib if we are careless.

Bitcoin volatility has its pros and cons, it's not quite as good as we think. Bitcoin's volatility would be a good feature for investors, but for those who use bitcoin as currency, it is a very annoying feature. It can be said that depending on how each person uses bitcoin, we will see this volatility feature good or bad.

We don't have too many people using bitcoin as a currency, most of us are looking at bitcoin as an investment to make a profit. So my question is, will bitcoin still become popular and widely used if its volatility disappears?

And the reason why businesses are not preferred to accept Bitcoin than just keep on fiat. Of course, volatility was not good for them as it was so stressful on their part but investors does and profited more. So until now, the majority are considered it as an investment and even it was been accepted in our place, it was seldom for someone to use it to buy stuff instead, they just converted it to fiat money because of its value. And so I understand that merchats wanted to see Bitcoin become less volatile for at least, it was not too risky on their part.

In theory, bitcoin was created to fight inflation, it is a viable alternative to fiat when the devaluation of fiat is getting worse. But in reality, bitcoin is being treated as a speculative investment, so I doubt that people will hold bitcoin when inflation or crisis hits. If people actually hold bitcoin to deal with inflation, then I believe there won't be any dumping.


What's happening is a very normal thing, and I think it's just the bitcoin's movement. Bitcoin has increased, it must decrease and vice versa, after falling, Bitcoin will definitely increase. So as long as we don't sell bitcoin when it drops in price, nothing will happen to us.

Bitcoin is a very volatile commodity, on average daily price fluctuations may range from 1 to 4 percent but things that happen several times are that it can reach 2 digit percent or more than 10%, because bitcoin is very volatile so we must always be vigilant and don't make it a the greatest asset that we hold.

It depends, it is true that the volatility of bitcoin is extreme for most traders, however if you know what you are doing and you can resist that volatility without selling your coins when there is a dip then I think that person can do well in this market and could make out of bitcoin the asset in which they invest the most money, however someone which cannot endure the volatility should without a doubt diminish the money they invest in this market and maybe even leave this market behind for good.

actually your investigation is at some point useless , because everything that you said has been tackled and mentioned in this forum for how many times,
and the simple thing to explain is? Volatility is about Supply and Demand.
not only 10% sometimes there are even higher than what we are seeing .

The volatility of Bitcoin is like a double edge sword and can move in both directions. Its volatility that took BTC price from 26k to around 28k yesterday and anyone who has bought Bitcoin on 26k or below has already good adequate benefit. To me price volatility has done more harm to Bitcoin then good, its good for day traders but to achieve BTC mainstream adoption we need to have stable BTC.

Bitcoin is becoming known and attracting people's attention because of its volatility, they can make profits from it. If bitcoin becomes stable and ceases to be profitable, will it still be as attractive as it is today? I also know that in addition to profit, bitcoin has many other useful uses such as being able to become our own bank, transferring money across borders without spending too much time or incurring other costs...But obviously, we are focusing on its profitability more than any other feature. So if it stabilizes, I'm afraid it will lose its appeal.

The volatility in the market can bring opportunity for other investors in this field of Bitcoin or crypto. And for others, it can cause them bad things if they don't have a deep understanding of this industry. But do you know that volatility also teaches us to balance the assets we have here and decide if we should buy or sell? Because this is the beauty of volatility, actually.

That's why others say that this is an opportunity because it gives us a signal to have income, or else we will be even more prudent in what we do here as investors or holders.

It can be said that volatility is essential when it comes to investing because it is through it that we can make a profit. But whether we can make a profit or whether it will be harmful to us depends on our own abilities. Like @Watche said, volatility is like a double-edged sword, if someone knows how to use it, it will have very good effects, but if someone doesn't know how to use it, it will harm them.

Cryptocurrency is famous for its volatility, I know many gold and stock investors turn to bitcoin because they like its high volatility. The more volatile the market, the higher your chances of making money.

I think investing is not something that requires volatility, trading is. When you are investing that means you are going to hold for a while and it can grow slowly and you would still make a profit and you would be happy about it and that's fine however when we are talking about trading that's going to be different and you may want to see some volatility so you could make a profit.

In order to make a profit from trading, you need to end up with a up and down constantly to make that profit, otherwise you are not going to make that profit easily. I get that it is not that simple, but it should not be, that's not the point and you should be making some profit that would make more sense on the long run whenever you can.

Agreed. Volatility is what attracts traders. But the main question is why volatility occurs. If the trading volume is low, even a small buy or sell can lead to major price changes, i.e. volatility is there, but you can't capitalize on it. Therefore, you need to have a good understanding of the nature of volatility

What you're talking about is short-term volatility, but volatility also has long-term effects. As you know during the off season bitcoin is dumped very severely but during the bull season it also increases in price wildly and that can also be called extreme volatility. You won't see that volatility with gold or real estate, so when it comes to bitcoin volatility it can be used either long term or short term. Don't think that bitcoin's volatility will only happen in the short term.

Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

I believe that market volatility is intentionally created by someone, not volatility according to market demand.  in addition to macro news that affects market sentiment, sometimes we can also see fluctuations that occur unexpectedly and there is no explanation for it.  market makers know we like volatility, and perhaps that's their way of making us care more about the markets.  every time the market fluctuates, people are very eager to long/short and the result is known to everyone, many long/short orders are liquidated afterward.

volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

Crypto has a much higher volatility than the stock market. In rare cases, the price of stocks or gold can rise or fall as much as in crypto. If the price changes by more than 10%, trading on the stock market stops. And in crypto, this is a common thing. That's why people are more worried about crypto than gold.

What is happening to bitcoin volatility is not a new thing in the field of economy, even the the fiat currency is also unstable level and that caused the inflation in some countries in the world. In most of the countries in the world, dollar control the price of goods and services. So the fluctuation of dollar also determine the price of things in my country. And the fluctuation of bitcoin price is depending on the market inflow of the whales, that is, the number of whales buy and sell in the market cause the volatility of bitcoin.

If bitcoin users use p2p transaction system then the government regulations would not affect it but whereby users of of bitcoin make their transactions through exchange then the regulation from the government policies would affect the asset.

And that what makes it interesting for most traders is that when it comes to volatility then crypto does have that very huge movement on which you could really be able to play with those movements at your advantage to make profits in a short time as possible which this is something that you cant really be able to get or see on traditional markets like forex and stocks which it would really be just that normal on having that kind of reaction
on which you would really be looking for this market to be really that interesting just because you've seen about those probabilities on making profits in shortest time as possible but of course you shouldnt really neglect
nor really that ignore the probabilities about getting losses as the risks is really that much higher on which it is really that understandable on this way. The hardest part on dealing within this market is that it is really
that too hard on predicting on where prices could go on which it do sometimes getting that significant movement came from technicals but sometimes in getting in line with fundamentals too.

While there is sense in what you are saying, there is something I want to draw your attention to. First thing you need to understand is that volatility is like a response of the market to speculations, news, human emotions, panics and other factors. If you have ever traded the currency market, you will notice  that there is always high volatility during periods of high impact news such as NFP or FOMC. I like the fact that you acknowledged the market makers as key players in controlling price movement... they indeed create these false narratives that lead people to panic and shocks and this is what reflect on the market as volatility.

The earlier the better for us as many as possible to understand the needs for volatility, why there must be volatile bitcoin market always and the price cannot be stable, we need a proper understanding that bitcoin is so designed such a way that this volatility is what create an entry and exit point for bitcoin investors, either they are on a long or short time investment plan, because of this same volatility, some have the reason to make profits from their investment from this same view.

Without price volatility – what's the point of putting money on the market then?
Money means absolutely nothing when you get nothing out of it in the market - meaning the volatility of crypto prices is to be expected for the money used in the market to be useful.

Exchange developers, traders, investors and the government expect volatility. The higher the price volatility, the more transactions take place - meaning exchanges can accumulate profits from trading fees, traders and investors profit and governments also benefit from taxes.

If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.

You cant really compare a digital currency or something that in build with codes into a natural resource or mineral that could be seen physically and its true that it is been known for thousand of years and it does have that supply which could really be dig and extract out on this world compared to something which it is that built by a human. We can compare out numbers but it would really be just that good on that way and i dont know on why they are really that a fan off on trying out to compare both things knowing that they are really that totally different to each other. Bitcoin as digital gold? I dont think so but if they do have that kind of impression then so be it but comparing about their value then its obvious on whose volatile and who do have that potential on rising up even more in the future.

Market volatility is always been that present or something in default. If this market turns out to be stagnant then there would be no investors that would really be loving on hanging out
on this place but rather finding out some place on which they could really be able to make money.

Profit from investing in gold (or any other commodity) is not anymore physical than profit from investing in bitcoin. But if you meant that gold is physical, while Bitcoin only exists online - that's true, but the majority of those invested in gold would not hold physical gold anyway (but rather be invested online, i.e. via ETFs), as it's very inconvenient to store, so the difference is just theoretical.

Because gold is one of the most valuable assets we have and people think that just by comparing bitcoin with what is considered the most valuable, bitcoin will become more valuable than anything else. Those who are comparing gold to bitcoin just want to say one thing, bitcoin is the best and nothing can compare.

I have also said that before, we only care about bitcoin's volatility, I believe that if it becomes as stable as gold, people will no longer care about bitcoin. It can be said that volatility is what makes people more interested in bitcoin than any other investment.

Yes, most commodity investments today use ETFs or sheets of paper which are also done online, while people who buy gold directly might be a different story, but that's rarely encountered.

Returning to the topic of the impact of volatility because of some of the influences that the OP mentioned, it is scary because volatility is very high, and because of that bitcoin is also very difficult to use as a standard of value, because it is too volatile and moves based on sentiment.
If bitcoin's price had a stable movement, I think there would be many people who would use it as a currency, but bitcoin would not be a place to invest if it moved as a stable value standard.

I would say it's even better, why? Because gold could be stolen, whereas if you store bitcoin good then it shouldn't be stolen. Like a bitcoin that is in your own possession shouldn't be stolen without any type of passphrase or anything, whereas gold could be stolen very easily.

We have seen that happen many times, to be fair a lot of people also got their bitcoin stolen but that was their own fault, not the fault of bitcoin whereas gold is naturally easy to steal, wherever you put it, someone could take it there without much force. That's of course a tough deal, and you need to be careful about what you are doing. I think it is going to be a big deal when you are not careful, and that is why it is going to take some time.

Well, what I am comparing is about the popularity and acceptance of those 2 assets. Having your property stolen is a risk created by you, not by anyone else.

That's right, if you own a large amount of gold, storing it will be difficult and can be attacked and stolen. But bitcoins can also be stolen if someone knows you have a lot of bitcoins, or they can also be hacked if you are careless while storing them...In short, this is a risk you create and you can control it, but in terms of popularity and acceptance by people, it is a risk you cannot control. If your gold is lost, you cannot blame the gold but your carelessness.

I do agree that bitcoin is much safer to hold and it's definitely a good bet. I know that it's not going to be easy to make it work but at the end of the day gold is tough and we shouldn't really rely on it. I get that some people do not think that it's going to work out in the end but we can't really make it change.

All we have right now is that bitcoin is digital and digital things are sensitive. This means that it could be stolen easily as well as protected easily. Depends on how you secure it, you could make your bitcoin impossible to be cracked if you want and impossible to be stolen, or you could literally give it to some project that will rug pull it, simple as that. So, it's not that easy and you shouldn't really expect anything.

When you enter the cryptocurrency market, either as an investor or as a trader, volatility is basically what you look for. An investor is someone who just buys and holds specific assets or cryptocurrencies like Bitcoin, while a trader is someone who buys and sells cryptocurrencies for a very short period of time to get very small percentages of profit out of each trade, however, both of these need volatility to help them achieve their goals and earn some money.

An investment from an investor would make no sense if the market doesn't move from where they've bought because they will only earn money if the market moves up, and when it moves up, it can move down as well. Similarly, a trader cannot make any trades if the market is completely stagnant.

Yes, volatility is trader's best friend, but it's not necessarily welcome by (long-term) investors. Low volatility doesn't mean the market does not move at all, it means there are no sharp and sudden movements, and instead of jumping up and down, price can go up slow but steady.
Example: gold is still considered a low-volatility market, but it's still popular among investors. There's nothing stopping Bitcoin behaving more like gold in the future, when block-rewards are lower and halvings have less impact on the supply.

Yes, we can either see it as a friend, even with long term holders though. I mean long term doesn't care about what the current price is, or how it move, maybe it was sideways or going down on a free fall.

What's important for long term holder is when they are going to sell. And obviously they are not going to offload their stash during a bear market. They are going to maximized and squeeze every profit so for them volatility is non-factor.

Volatility can play both good and bad roles but it depends on us that how move according to it like if there is increase and decrease so we have to take decision of buying and selling according to it but if decrease in price persists for longer time then it can be unhealthy for investors.

Volatility is beneficial for both trader and investor but due to Volatility short term traders are in more risk due to regular changes occur in value. People consider gold as a safe investment because the changes are not so sudden and huge down like that of bitcoin.

One disadvantage of volatility is that someone wants to multiply income quickly so when market decreases due to volatility then there is a chance of losing your hope as well as money.

If there is a decrease in the price of gold then people don't rushes towards its investment like that of bitcoin and neither they wait for the dip but in case of bitcoin people wants a season of bear where they can buy bitcoin at affordable price.

Gold is not only used as investment but there are other purposes of gold like for marriage gold is utilized as an ornaments for bridal therefore people believes that gold cannot vanish and price will go more higher.

Other thing is that crypto volatility occurs in a few moments but the gold price does not changes as soon as that of crypto coins so may be this is the cause of worry in people who desires to invest in crypto.

Volatility is what makes an investor and also trader hopeful but sometimes regretfull because it has a two way effect and as it's good and beneficial for you as a trader that's the same way it's aslo dreadful when the volatility doesn't favour you. For bitcoin volatility is what made people like us who missed the early time bitcoin started to actually be able to buy now because of the constant fluctuation of price.

Volatility in the market is good for traders as they use the opportunity to make money from the market. An investors doesn't have any business been concerned about the volatility of the market because he isn't trading and only holding his investment up till it gives him or her profits then she can sell. Mostly when an individual invest in Bitcoin they already know when they want to sell and it's mostly during the next all time high of Bitcoin during the bull market.

Without volatility the market won't have been interesting and it wouldn't have had the opportunities it has to give traders profits everyday depending on how good the trader is in interpreting the charts and predicting correctly the movement of the market if it'll be up or down.

How the volatility benefits the people is based on the way the market is being observed and the decisions were made. Volatility is one among the best of bitcoin and other cryptocurrencies. If the Market used to be stable we couldn't have got such a level of growth in the short time period.

Gold obviously has less risk than Bitcoin for the money invested in it due to the level of its volatility which is a lot lower than Bitcoin's volatility. And gold barely loses value over time but it just keeps getting more and more expensive as we move into the future, whereas Bitcoin is volatile and moves in both directions equally. In a total Bitcoin cycle, it has a bull market and a bear market, and we get to see both a very low price and then a very high price every cycle.

However, as you said, the higher the risk, the higher the potential for greater rewards. So, people who want to get a lot of profit in a very short span of time, tend to go for investing in Bitcoin, and those who are okay with stable and long-term profits, prefer investing their money into gold.

or is btc going flatter in its peaks and valleys.

2012-2013 about a 200x move up

2016-2017 about a 40x move up

2020-2021 about a 17x move up

2024-2025 maybe only 10x up?

I was compelled to reply to your post due to many errors I found and I hope this corrects it.

Volatility, Liquidity and Market participation work hand-in-hand to define the condition at which the market moves. With low liquidity and market participation, the market could be very volatile and could also be manipulated as well, which is why we see some spikes and haphazard movements at times when the market is speedy. This could cause some unrest and whipsaws as well, conditions that are not good for trading. However, it's often difficult for the market to be manipulated when the liquidity and participation are high. This is when you see the market smoothly sailing towards a definitive trend without much of the dangerous moves.

Mind you, any market could experience high or thin liquidity, gold is not an exception, and when it comes to volatility in the market, gold is one of the assets on the high side, it's volatile.

Gold being a safe investment (or store of value) is a bit of a myth. People confuse the actual value with the nominal value (aka fiat price). When adjusted for inflation, things are not looking so rosy. Depending on methodology, some charts like the below are looking pretty grim:
https://www.talkimg.com/images/2023/09/11/6XL1f.png
source: https://goldprice.org/inflation-adjusted-gold-price.html

The low amount of liquidity causing a lot of volatility is the hardest part of it all. I understand that it is not that simple to make it go up in volume, because liquidity lacking is a problem with a lot of low coins and that's an issue, but we can't fix it aside from finding more liquidity and many of them can't find it even if they try hard for it.

So long story short manipulation due to low liquidity is very common at low cap tokens and that's something that cause a lot of people to lose money as well. One whale could make it go up a lot all by themselves, make it trending and liked by a lot because of how much it went up, and then they could sell it to all those new buyers to make their profit from it as well.

Maybe that's the problem. People think they have to react to every change in price, by either buying or selling. This obviously only escalates volatility even further.
The problem with Bitcoin is it doesn't have a fundamental or intrinsic value. In other words, it's impossible to say whether Bitcoin is over or underpriced at its current price, which makes it way more prone to wild swings than any traditional asset.

You touched a very interesting point, people by the education they have received believe they have to respond in some way or another to the situation at hand, not understanding that sometimes the best thing they can do is to do nothing, a famous example of this is when people get lost on the wilderness, many survival books advice the person to not move far from their current location in order to make it easier for the rescue parties to find them, but people hardly use that advice and they keep looking for ways to save themselves, only to fail and get farther away from the point rescue parties may be looking for them.

LOL Gold is highly volatile. It creates price action that than you also cannot imagine but still goin into a clear direction going higher. There's even still an argument whether Gold or BTC is king. That's how most speculators describe Gold. Also most volatility in the marketplace was brought with some fundamental news that will affect commodities and currency, hence will also affect cryptocurrency. News releases also inject volatility in short term of BTC prices.

Wayback on which fundamental aspect when it comes to news doesnt really affect Bitcoin or whole crypto market but now it turns out to be that relevant whenever we do see those news that pop out like mushrooms which it do really basically shows that it is really that having that significant effect whenever these news do comes out nowadays comparing into those early years that we do have on this space. This is why if you are really that a fan when it comes to fundamentals which is correlated to traditional markets and economic issues and events then you would really be loving on making out connections in between Bitcoin and this one.

To be exact, gold is also very volatile, but its volatility is not as great as bitcoin. If anyone has ever traded gold in the foreign exchange market, they will understand that the fluctuations of gold there are not pleasant.

Gold or BTC, who will be king? Which aspect are you talking about? In terms of safety and capitalization, bitcoin cannot catch up with gold, but in terms of utility, bitcoin will somewhat surpass gold. To be fair, gold is a thousand-year-old asset recognized worldwide, while less than 5% of the world's population owns bitcoin. Basically, bitcoin has not yet been able to surpass gold.

News is always an indispensable part of the financial market, sometimes it will be news that drives the market, sometimes it is just an excuse to legitimize the market's price line.

Why would an investor have no business with the volatility of an asset that they have made investments in? Would you be okay with Bitcoin being stable for years after investing all your money into it hoping that you will get huge profits after some years? I don't think so, that's why, whether someone is trading for the short term for small profits or investing and holding for the long term, volatility is important for both of these cases because there is no profit without volatility.

So, anyone who is involved in a financial market like the cryptocurrency market does care about the volatility of the assets they are trading or investing in because its the volatility that determines how much profit one can make from a certain investment that they are willing to make.

Yes, and that's why majority of us here are into crypto because we haven't seen this kind of assets that is very volatile, but yet in the long run, it will give us huge profits. And the design itself by Satoshi is very unique and controversial that's why many is against Bitcoin for that matter.

But for us, volatility might be difficult to understand in the beginning, but once we know how to play and manage risk or have a strategy to accumulate if we are going to be a long term investor, then we can treat it as a friend and love to see the ups and downs of the market.

When people talk about volatility as it concerns bitcoin and cryptocurrency, they often dwell on the disadvantages side of the divide which only talks about how an investor could lose their investment value should the market go the reddish side. Hardly we talk about the bullish part of it, but each and everyone of us has invariably benefited from bitcoin bullish trend.
That is one part, another angle I wish to emphasis is that volatility is also an advantage, because day traders benefit from the movement of the coins. If the coins don't move, there will not be trading.
Op, don't you think volatility is what we need more to achieve bull run, why think the reverse?

Volatility really plays an important role in each and every crypto market. For this volatility, the traders make profits and for this volatility only the traders make heavy losses also. Basically the volatility plays an important role in manipulating the market from one end to another. If a trader underestimates the volatility offered by the market, then definitely he will make losses in long term. You need to analyse the risk involved along with volatility of the coin and then only trade.

You definitely make your point here, I mean there are just so many things that are affecting the market price of Bitcoin, and it's just the nature of Bitcoin and cryptocurrency, we can't really do anything about that because even though there are a lot of disadvantages on being a volatile market it's still a lot of advantages to the point where it makes the cryptocurrency unique to other investments and assets like stock, real states, etc.

I mean if Bitcoin or other cryptocurrency wasn't volatile like what it is we weren't really going to make a good profit on it, probably those Bitcoin and cryptocurrency millionaires are going to be rich after a few more years like the stock market since most of the time it would take many years before they could gather momentum and skyrocket its market price. I mean we could just compare it to the stock market with just a much faster movement, But we can't really control this kind of thing since it is cryptocurrency nature what we can do is adjust to how we can make a profit on it, probably most of the investors are already doing DCA in order to accumulate cryptocurrency and in the end still make a good amount of profit, bad side probably is there are always going to be losers since you're going to lose money if you didn't sell at the top, there where only a few investors that is going to be lucky to sell at the peak.

Volatility is expected because bitcoin is not a stable coin pegged to the USD. Bitcoin is traded freely without anyone's intervention, but if its price volatility didn't really exist then it's clear the average person would never want to trade it or invest in it. For me, price volatility is mandatory for all crypto assets, even USDT always fluctuates and never has completely stable value.

Moreover, price volatility is not a threat to the future of crypto, especially bitcoin. However, the impact of this volatility must be minimized so that investors and trader do not experience losses over time.

Many people invest in Bitcoin because Bitcoin has volatility. Because volatility gives the investor the chance to make a profit. It also has risks, but volatility makes investing more attractive. Maybe we will see a time in 50 years when there will be no volatility in Bitcoin, but Bitcoin needs volatility right now. Volatility also brings new investors.

Some of the people who invest want to make a profit in the short term. Not all of them, but still a significant number of them are short-term investors. Volatility allows these investors to get what they want.

How do you expect the impact of the volatility to be controlled or minimized? That might be possible if an asset or a cryptocurrency is centralized and the control is in the hands of the creators or maybe the holders which is barely the case with Bitcoin or a lot of other cryptocurrencies because the amount of volatility depends on the demand and supply rule and we are not really able to control the demand or the supply unless a cryptocurrency has a supply that can be increased or decreased by the developers which makes it centralized, somehow.

And the main thing is, as you said, the volatility isn't really a threat for cryptocurrencies but it's the reason why they are so popular in the world today. Imagine if Bitcoin wasn't volatile from the beginning, and the price didn't increase at all, would it be able to reach where it is today? I don't think so.

I couldn't agree with you more; without control of number of sells or purchase, they won't be a limitation to how an item can rise or fall.


In my understanding the factors and the volatility are directly dependent, anything can happen.
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The factors are directly dependant in the sense that it what triggers the choice of marketers(sellers/buyers) and thus, causes the fluctuation in the market.

These are applied to forex exchange market, particularly BTC/USD, where the volatility and signals varies in some days.

This is clearly why Bitcoin would always be above the others. Just imagine the frustration that comes when you buy any project outside Bitcoin and fail to make tangible profit for years due to how slow that particular crypto market is due to centralize influence and unimaginable number of supply.

Bitcoin on the other hand is driving by the demand of the people as you've stated, which makes it very impressive (whether good or bad), i.e price changes as time counts.


Volatility is clearly why we make profits and losses , and profit and loss are clearly part of economics. If either of them remain constants for a very long time just like how so many altcoin behaves, it certainly leads to total failure at the end of the day for investors. This is unlike Bitcoin where profit and loss occurs at a decent interval making it best I must say.

You are quite right about bitcoin been the most stable cryptocurrency, but in exchange with other currencies, it can be highly volatile, with price going from 0.1_0.5 within a blink of an eye.

One of the main things on why crypto market had been that mainly supported or been backed by the community is just because it did really be able to built up that kind of confidence that this isnt something a market which could really be that easily be controlled or manipulated. Well, we do know that some part of might be but in general there's no way that only a few entities would be able to make out that huge effect into this space.

If they have been able to have such control then they wont really be trying out their very best on trying to get rid of it. Cryptocurrencies are indeed revolutionary thing that had been created.
Market makers are the ones who do make out such volatility or movement into its price plus having those other factors on which considered out to be also the reason. Effect?
It would really be pertaining mostly or considering about making profits or loses into those people who had been able to get along with those movements and decided to take up some ride
out of it. Outcomes will really be determining on how well you have done such thing.

news or issue is the main reason why bitcoin prices fluctuate so much, especially news about exchange hacks and ETF. this is the reason why investing in bitcoin is a high risk investment. However, this also has a positive impact, namely that it can provide profits in a faster time because the price of Bitcoin rises and falls very quickly. However if you invest long term you don't need to worry too much about the very fluctuating price of Bitcoin.

Behind it all I believe investors also have a tagline 'buy based on rumors, sell facts' and vice versa. Exactly the four are the most dominant components and are enough to affect market sentiment either positive or negative so that it more or less affects the price performance of BTC, but if the news is good, everything will be fine.

Well, if we see suddenly the price of bitcoin dropping or rising drastically in the near future use that concept as well. and This is why we should study and understand how it works in the market. Many traders profit when using this strategy.