Bitcoin Forum

Nevertheless, cryptocurrency is still the hottest asset in the financial markets and it gives great opportunities for trading. The main feature of crypto is that the crypto market is NOT efficient, unlike traditional financial markets. It means that any anomalies that emerge on the market do not disappear instantly. They can last for a long time and give huge potential for speculation.

For instance, big fragmentation of crypto markets around the world and large spreads between different crypto-exchanges give the possibility of arbitration. Long-term unchanging trends can be used for directional trades both for long and short positions.

Due to its speculative nature, the cryptocurrency has high volatility, thus creating many opportunities for potential profits and possibility to buy your own Lambo some day.

Read full article here: https://bokka.com/cryptocurrency-news/what-can-affect-the-cryptocurrency-price/

As from my experience, it will depend on the nature of the coin and the project itself,  but as for bitcoin and ethereum, from what I see it still based on supply and demand, we had just seen a sudden drop because of the release of coins by Mt. Gox, that had entered the pool, in return, there was more supply than demand and in return, it had also affected the price of altcoins, since they are also pairing their value to bitcoin, FUDs also affects the the price of coins, it is not just for bitcoin, but for all cryptocurrencies, however for altcoins, there are those who are POS coins, that sometimes ran into oversaturation and the value will drop due to supply and demand again, but if the devs know what they are doing they can make sure that no oversaturation will happen, also for altcoins, it eill depend on the project itself and the team, however FUDs will still be there and it is up to the community on how they will support the project.

The market of cryptocurrencies is without a doubt the market in which there is more volatility, this means that you could as easily as you could earn a fortune you could lose everything that you have, this means that the factor of luck is a lot more significant than it is in other markets, which is one of the main reasons of why you can see some people investing in a coin and becoming millionaires in some months while another investor could hold a coin for years and not obtain profits.

When we can use it well then we can get a pretty big profit. but when we misuse and can not make decisions then we will even lose.
Bitcoin price fluctuations are indeed a dilemma, sometimes people feel happy and there are also people who feel sad about such things.
There are so many aspects that can affect and I think that we should be fully prepared to accept any conditions and risks that might be caused.

There are numerous more factors other than volatility which have much more impact on individual's holdings. First coming to volatility, in my opinion Volatility exist in crypto market only in short run. In long run, there is only upward rise. Compare Top 100 coins from their rates in 2015 to rates in 2018, almost all of them will show upward sloping price curve. Hence, volatility is never a big cause of earning / losing.
Rather, factors such as right time to enter/exit, Government regulations, patience are some which are more determinant whether individual will gain or lose via Cryptos.

There are some tendency that crypto currency price can affect with the supply and demand in the market, and even releasing of fake news about crypto currency it may affect the price or some other country who didn't accept the crypto currency.

Yes maybe if people do not think too much and do not have to bother when there is hot news that can affect a person psychologically and lead to a massive sale, for me if still want to always hold all their coins then there will be no decrease, on the decline because in the Blockchain system we have our own place and it depends on itself and the responsibility itself there will be no one to touch your coins at all.

There is a clear distinction between the price and value of an electronic currency. The price of any coin is simply the cost of buying it, while value is a perception of its benefits and usefulness.
Several factors affect the price of crypto:
1. Supply and demand
Supply and demand of any kind of electronic money will affect its price. An electronic currency has a lot of supply, but less demand, its price can not be increased. While an electronic currency has a limited supply, it is expected to see significant price increases
2. Utilities
Utilities are one of the most important factors when looking for an electronic currency and make investment decisions. If an electronic currency solves a problem, that is, it is very useful, but that is not reflected in its price, that kind of money is still underestimated. This is a good indicator, even if it is undervalued, but once the market begins to realize the importance of that kind of coin, it is likely that the price of that electronic currency will increase.
3. Market psychology
Positive or negative market news can also be a factor in deciding whether or not the price of electronic money increases. The reason for this is that, depending on market news, the perception of the value of that kind of coin may change.
4. Mining Difficulty
The increase in mining difficulty means that it is difficult to increase the supply of this kind of coin, as compared with rising demand, which may cause an upward movement in the price of the electronic currency. This factor requires you to have technical knowledge about the type of coin you want to invest as this can play an important role in future price movements.

There is not some people gripe because the price of cryptocurrency is very volatile, and this factor causes many companies to think several times when they want to use cryptocurrency as mean a payment tool. I agree cryptos market is strongly influenced by speculation. So that something has not happened any cryptos prices will change drastically. It is good for someone who trades in cryptos to see market conditions if it is possible to trade then they can spend their money, but if the market does not support fiat money they can be stored well.

I think the speculative nature of investors in Crypto currencies will just increase once the institutional capital enters the scene. Until now, some early adopters of the technology has dominated the scene and these whales kept things from going out of control, because they still hoarded the majority of their coins.

When institutional capital enter the scene, you will see a lot more volatility.  >:(

the most obvious factor influencing the price increase is its limited supply and the huge number of requests. we know, that this high votatility is very beneficial for some people who have joined in this crypto world. this fluctuating price invites many traders, investors and companies who want to join it.

Interesting thing that better being extra attention are TRADER SPECULATION, this action actually doing not because there's something happen or generally base, so sometimes it blind or getting bigger. All trader that doing this buy on bitcoin in a very big volume, cause the others trader panic and also buy bitcoin so the price getting higher. When the price increase, trader doing the pump and dump will sell all of their bitcoin, cause the price down and cause damahe to the trader that haven't sell their BTC.

Bitcoin.co.id

The eruption of bitcoin marked the changes of economy. In just a range of 9 years, the expansion of bitcoin as well as other cryptocurrency rapidly increasing. News, social media and other article have been fulled by the context of cryptocurrency. People are shock, amaze, impress, fear and attract by the new development created by Satoshi Nakamot. Bitcoin really changed the way we are and the way will be in the future.

Tendency about the supply and demand is oneof the major causes of crypto prices,when supply is mostly used,then the user will seek for it thats why the price will goes up,then vice versa if the demand is smaller then price will goes down.

But fake news and fuds alsa big benefactor of price falling because panic person will react wrongly and sold l their coins to cut loss

In my insight, one of the biggest factors that affect the cryptocurrency price is the social media marketing and advertisements, just think how much people rely on news and information that was going on on the internet, people read also news in the internet nowadays compared to newspaper so if people advertise it to people online then inviting investor individual or group is one factor that add crypto price when they put their money on the market.

If i may add into it, in my experience and observation, cryptocurrency downfall in prices are often manipulated my fear uncertainty and doubt, all these negative publicity can actually burst the bubble and make the coin collapse for a while until such time that publicity wear off. Whilst good publicity and advertisement can actually convince some investors to putting in money into that token or coin.

I think what affects the price of a cryptocurrency especially if it is a new one is the success of the campaign. Afterwards ,the law of demand and supply has relation to the currency's price .When more people are willing to buy the coin, there will be chance for the price to rise and when more people are selling their coins, the tendency is the price will be going down.

i think cryptocurrency whales and government they are the biggest enemy of cryptocurrency prices. the biggest difference in prices is when government will do a job with it. they keep in touch until when they become a whale reaching the biggest price that crypto could be. and other holders are crying begging that crypto whale come back. creating the currency is not easy then it will easily destroy by the government. government has been the best enemy of any crypto.

You just described any investment with high margin in a regular stock in the stocks market.
We can surely say that bitcoin will never be worth zero, because as long as a single man runs the network and mines , bitcoin will still have a value.
There are tons of things that affect the price of bitcoin, most of them are being caused by a small group of strong financial people.

Crypto currency price is mainly determined by the increase and decrease in demand for those currencies.But nowadays FUD play a major role in affecting the crypto currency price and hence it is widely used as a tool by big whales for manipulating the price.Also the major decisions taken by governments regarding legalizing or banning cryptos also affect the price.

There are so many helpful statement in that article but actually there are so many more reasons why the cryptocurrency is increasing and decreasing it is because that those people in the world that has a influence to people to not promote cryptocurrency it is one of the main cause why btc and other crypto decreases and increases as well.

at first i thought this was a question thread until i read the content,

in general, we know that NEWS is the one that can really affect the cryptocurrency price

Indeed. But this is the only reason which makes the bitcoin and altcoins work just fine in terms of giving us the profits. Now just look at the market it self, if you have put some bucks in the BTC early this morning then you could have ended up earning at least 10-12% of margin profits thus making some $$. This is how it works, the volatility has to be there and no matter what are the reasons for it.

I cant agree more on the stability of the bitcoin where people keep cursing for its instability. Its better to have them likewise and keep blessing that they never get stabilised. Lolz.

Even though the crypto currency is different from the traditional markets, one cannot deny that they are bound by a lot of similarities which includes the markets being affected by FUD and sometimes governments. At the moment fake bad news is the number one doom of the crypto market.

Law of supply and demand. If there's a large supply of token in the market, it might mean that production of the tokens is too much or simply no one has interest in buying it.

If the demand is way too high beyond supply, price of the token will soar high. Of course it's possible if the project was a success and a lot haas became interested by it.

Project's success still determine the price in the long run.