Bitcoin Forum

There is the normal fluctuation, and then there is a particular reason - like Tesla deciding to not accept bitcoin payments which caused bitcoin to plummet %40.

This thread is for those particular reasons.

Sometimes, the market moves abruptly and drastically and we might not catch the reason in the news. That's when this thread comes in handy. You can know here what the reason is for the drastic increase or decrease in prices that you're seeing.

If it's not already mentioned, ask, and someone will reply.

I'll start...what's causing this recent price increase. Anything particular?

tldr; supply and demand

Not sure if that was supposed to be a smartass'ish answer...

Might not be the smartest answer, but the market is base on this tenant though.

Probably the reason for the recent spike is that there is no FUD, or at least the China FUD is dead already. Even when Amazon confirmed that they are not going to accept bitcoin as of the moment, the price continue to soar above $40k'ish.

It is difficult to know the particular reason why the market has plummeted. And it's harder if there's no published article that we usually check within the news websites.

I can't find any particular reason for it but I think it's still the Tesla and Amazon news.

Might sound like it, but especially in this case, it's pretty much it. We didn't even have any notable news that could've caused a huge speculative pump. In fact, we actually had some sort of "negative news" concerning the government wanting to force KYC one way or another.

So yea, supply and demand.

It was speculated at first that Amazon will accept BTC which causes the price to shoot. This turned out to be a rumor only which Amazon also denied they will accept BTC. But I think there are news recently that made investors see that price will go up so they rush to buy more BTC particularly to the news that thousands of BTC are being withdrawn from exchanges.  And then there's also new institutions buying.

hashrate stablising over 100exa again.. (finally)
more hashrate = more competition=less reward per user

this makes more users want to just buy instead of mine it.
this makes the price go up.
then more users see the price increase.. meaning they can make profit mining.
so they mine..
.. rinse and repeat less reward per user. =more buyers

Wrong.
News like this only has a small and short term effects on bitcoin price specially when it is from a completely irrelevant company. If you think about what you say a little, you will realize that Tesla doesn't even have that many customers to begin with, so it is not like they exposed that many to bitcoin with their announcement; and from those customers there aren't that many who would even consider paying with bitcoin. So the only thing the accepting bitcoin and later not accepting bitcoin did to the price was a small hype and FUD that didn't last more than a couple of days and I'd say it caused less than 5% price change.

Yeah, FUD for me too is one of the reasons because of these.
FUD comes with fake news, there's a lot of cases even before about fake news, and FUD comes in.
Just like what happened on Amazon accepting Bitcoin news a few days ago, it is one of the best examples of an abrupt pump and followed by abrupt dump.

The only "rumor" that I have seen, was that Amazon will be making an announcement soon ...about allowing "Bitcoin" payment on their platform. True or false.. I do not know... but I think it definitely had a impact on the buying side.  ;)

https://cointelegraph.com/magazine/2021/07/31/amazon-rumors-micostrategy-btc-bitcoin-40k-hodlers-digest-july-25-31  .....but just 5 days ago we had this, https://www.reuters.com/business/retail-consumer/amazon-denies-report-accepting-bitcoin-payment-2021-07-26/

So, either "insiders" want to keep this information for themselves to buy low, before the official announcement is made... or it is just FUD to hype up the price... time will tell.  ;)

this rise is not due to any social drama. its mainly about the mining drama of the last month now settling and now coming back to normal

chinese pools increasing their hashrate again and no longer selling to cover costs of the drama last month.
along with the ripple effect i mentioned in the last post i made in this topic

The supply and demand of users and traders affect the market situation. Other events such as adoptions and banning also affect the market positively and negatively. Different happenings could trigger the volatility of the market even FUD and false information. If we're wise traders and investors, then we shouldn't fear all the changes that would happen but rather take it as an opportunity to earn and take profits.

the cause of the price fluctuation I think the main thing for the increase is the large number of requests and for the price decline, namely the negative news about bitcoin which is currently intensively banning bitcoin mining in China, where the largest mining is in China.

The main reason for bitcoin price pump and dump is just the demand and supply. When a coins demand is high and the supply is low then there will definitely be increase in the price of the coin and if the demand is low and the supply is high this will lead to decrease in the price on the coin so basically the main reason for a coin pump and dump is demand and supply.

For now, i don't see any reason why bitcoin is in a pump because as far as i know, Amazon denied the rumor about accepting bitcoin. So it turns out to be a negative one for bitcoin. Maybe its definitely the huge demand of bitcoin that makes it supply become less. In this way, bitcoin price will bound to increase. And i think this is good not just for the market but eventually for all investors. Bitcoin will soon to have its ATH once it breaks its resistance level so let's just patiently wait for it.

To be short I can see the supply and demand can make the price increase or decrease, no matter the market. Doesn't matter where you are investing this supply/demand factor is the basic reason for ant price change. The reason for supply and demand are the traders and their thoughts, depending on how they feel they will sell/buy and change the supply/demand values, and the reason for the investors to make decisions to buy or sell comes from their mind, their knowledge and the fundamental news they see on the social media. Tried to explain everything simply.

This is very true. Although supply and demand is the most common movement of the bitcoin market volatility. FUD and FOMO have a huge influence on the fluctuations of the crypto market. Things like this should be known by beginners so they don't get trapped in crypto investments

There's already a (mega) thread where they talk A LOT about the price. It's called “Wall Observer (https://bitcointalk.org/index.php?topic=178336)”. It looks more like the forum chat, but there's lot of discussion about the exchange rate.

The cause of price's fluctuation is the laws of demanding and supply. The reason of price's fluctuation is the marketing manipulation. So I wouldn't call it a smartass'ish answer.

Why would they buy it instead? Usually, when someone wants to mine, he does it by ensuring he'll have a profit from this procedure. If he buys Bitcoin, how can he be sure that he'll increase his earnings?

first. someone doesnt join bitcoin to mine.. they join to get bitcoin..
the way they get bitcoin then becomes a decision. some prefer trading and dont want to mine no matter if its cheap. some will mine no matter the price.
some look at the price. vs cost. and then work out the best way

so to answer your question why buy..
because there are occassions where its not cheaper to mine!!!
(unless willing to sell your house and move to another country)

its better to ask it in another format..
why do greengrocers buy banana's..
because they are speculating they can later sell banana's for more then they bought them for..
part of this is deciding should they farm their own.. which has a cost. or find a simple method to obtain banana's if the wholesale price of banana's is cheaper then farming this season in their region

most regions find it cheaper to buy banana's than to farm them themselves.. and so they do that.

and thats basic economics. .. of every 'produce'
the real question is not why buy if they want to mine.. the question is why mine if you can buy cheaper
EG when the price was $30k but american hobby miners had a $35k mining cost.. why would they mine.. its cheaper to buy

and now you understand that different regions have different margin zones that have a pivot point of that decision. which is where most of the 'support levels' and resistant levels occur

This topic should be in the speculation sub forum but the answer to the question will always be supply and demand and that is for everything that has a value. Food is expensive because there is a lot of demand but it is not $1000 per carrot because there is a lot of people supplying food. Bitcoin is worth what it is because there is a lot of demand but there are limited amounts that are being supplied because of how the block rewards are designed.

Supply and demand and altcoins will benefit from Bitcoin increasing in price look at any charts and there will be a correlation between both Ethereum and Bitcoin with Bitcoin leading the pumps.

Your answer is equivalent to...

"What do you want to eat?"

"food"

there are some good news about bitcoin reason there's a sudden increased from the support level sice the hard fall. Indeed market nowadays is about what's treding around the internet that's why when we there's a good news such adoption there's always an impact in bitcoin price, so don't be surprised when there are some changes in the market, because its totally obvious what really causing of bitcoin performance nowadays. Or should i say ever since before.

So what's causing these dips now? Any particular reason?

No, I don't see any reason for the dip, maybe it was about time to have what we call a "healthy correction" as we can build more in the next coming weeks and the possibility of a $50k break out is positive.

And if you look at the price movement lately, that $48k price levels seems to be a big wall. So in order to break it, we need to step back around $44k-$45k again, gain some momentum and then attack that big wall in front of us.

It is just another correction that happens to the market, but if people think that the price will go down for more and panic to see the price now, they will sell their bitcoin and that can make the price go down or even the price will drop significantly. It will be almost the same thing if the bad news is released to the public and makes people panic, so hopefully, nothing to worry about. We hope that people are not panicking and still calm down with the current situation and think that is a good time to load more bitcoin.

I guess at this point we will always call any and all corrections as healthy;) But no of course,,, when we are making slow pumps like now and I mean slow in relation to how volatile crypto can get, these kinds of dips are actually healthy as they throw out the shortterm speculators and give buyers more space to keep demand.

They join to have a profit. If they don't have a profit from this procedure, they have no reason to mine. They can simply buy if they want Bitcoins.

I was trying to tell you that buying Bitcoin and mining Bitcoin are two separate ways to earn Bitcoins, but not to increase your earnings. As long as the income from mining is greater than the cost, you'll prefer to continuously mine, because you'll definitely have a profit assuming that you'll sell it later at the price it was valuated when you started. But, by buying Bitcoin you don't ensure a profit.

That's all I said. Nonetheless, if you insist on earning Bitcoins, you could mine them instead of buying them even if doesn't worth it.

Most likely this is the case, just small corrections, as we have been testing resistance for many days now.

Actually we have two good news, first the Walter wanting to get a crypto expert for their blockchain strategy.

And then we have Binance hiring Greg Monahan, a ex-US Treasury criminal investigator, as its global money laundering reporting officer.

So let this correction happen, so that we can solidity which price it will sudden because the next attempt to break $48k.

This might be the smartass'ish answer like you said but that three words speaks it all.
There is no need to answer your question with a paragraph that consists of 5 sentences or more or anything because as an investor, that must be the first thing that you must've know.

Possible that many of the holders or those who bought Bitcoin at the near $30,000 price sold some if not all of their holdings. Dips, corrections and massive downward movement are all normal when it comes to cryptocurrency and that is also the reason why people are earning many profits :).

Maybe, but it's true though. What @mk4 iss saying might put you off but it's true. I meam why are you offended by it? It's not like your thread is a complicated question because I think any person who at least have learned about economics in their schoold days, probably knows about supply and demand.

I mean we don't need to over complicate things, it is the basic economic principle of any assets, not just bitcoin so yeah, supply and demand it is. But there could be more underlying reasons to it, and maybe that's what everyone is trying to dig here. But if we can't then we go back to supply and demand - "occam's razor".

Because the world of crypto now are just being matured enough to not becoming a stupid panicking like what the past dictates in every time there is changes in prices.

In past every 1-5k price difference people already think of either to sell or buy and this is what changes now.

even small investors are now willing to Buy and Hold and not to earn quick bucks because they already knew this will only brings losses .

The simplest answer to your querry is, It is Supply and demand that moves the price of any asset in any market but there are many other factors as well. Any update of coin network that adds value to its use case can also move the price like what happend with Ethereum after London Hardfork that cause almost 1000$ increase in its price. Going furthermore on the Tpoic, whales aslo manipulate the price for their benefit. they pump and dump and small investors suffer.

I assume that the current market price is no longer influenced by supply and demand, so the ups and downs of the bitcoin market are now influenced by rumors circulating in the media world. if the rumors are positive, investors flock to buy bitcoin because they see the hope that bitcoin will be pumped, then when rumors say the opposite, investors are competing to sell some of the reasons for selling at a high price and then buying at a low price.

Binance really needs a pick me up like this after the past 2 months of people terrorizing them:) Their Binance US CEO already stepped down citing differences of opinion so them hiring the US ex Treasury guy as AML processes monitor should be a really good first step to marking down their recovery in US and rest of the world.

Totally agree with you, it's just that @9thsky made things a big deal plus this thread shouldn't have existed in the first place because it's a simple question with a really simple answer or in this case an obvious answer with the nod to the Occam's Razor reference. The underlying factors might not be too much of an influence to the market and if it is, it probably affects the supply or the demand.

People believed some media reports. Believe in FUD.
The price will fluctuate because people's demand for currency rises or because of panic selling.

|Good to see that finally there is a thread dedicated only for spam threads like the questions mentioned and that caused many new created thread time to time specially in out time now that changes comes here and there.

Hope that Mod will delete the same thread , to push all details to be answered here so there will be no another megathread to be born.

Actually OP is asking for more detailed answers so the question will always remain unanswered .