Bitcoin Forum

Increases or decreases Bitcoin price depends on what factors?

question is rather strange, can u specify?
chaos theory i would bet

It depends on two factors: supply and demand.

How much of each there is is a result of the psychologies of thousands of different individuals, which each react differently to news about bitcoins, changing situations in their own finances, the price movements of bitcoins caused by other individuals, etc. The price is therefore essentially not predictable, nor can one even predict how much of a change a particular large news event will have on the price. This is analogous to pricing of stocks, futures, forex markets, etc, except that in those markets rather than dealing with the psychologies of thousands of individuals you are dealing with the psychologies of millions, which allows statistical analysis techniques to be much more useful.

Exactly.



Though people perceive info in different ways, a bad news will be perceived as bad for most people, so you could still expect the price to go down if you read a bad news.

As others have mentioned, it depends on supply and demand.
And why only Bitcoin? Price of ANYTHING depends on supply and demand. Why is platinum costlier than silver?

Price goes down when people panic sell because of bad news, price goes up when many people buy back because of good news.

The first few days, any coins have good supply and demand & not exist good or bad news.
Increases or decreases OTHER COINS prices depends on what factors?

The day u can determine it xactly, the day no1 can stop u t be a millionaire  :D

demand,demand,demand

bigger the demand bigger the price

lower the demand lower the price

Like people have said simple supply and demand and panic sellers/buyers.

I believe this is your answer:

1- Bitcoin is at the moment only a stock (with a potential it may or may not become something else). And as a stock no one (not even the people at the wall street) knows when it goes up or down.

2- Since it works as a stock then it will go up and down with DOW and S&P indexes.

3- Since Bitcoin is a way to cut expenses, Walmart yesterday announced a new way to transfer money to cut customer expenses by 50%, which in turn affected all companies that transfer money (if you want some names of those companies then i would be happy to provide you with some).


People on this forum are more like hobbies. living a dream that's all (probably me too) waiting for one big news release that says all the world will drop all currency and deal with BitCoin and then the price will be come 1 million for each BitCoin.

If you want to know prices fluctuations then you need to do your research that's all and hope for some luck in doing the right decision.

However since BitCoin future is unknown yet, its price is very volatile and this became a great opportunity for many stock trader (and some hobbies) to trade with it and make some money.
Here is my 2 cents again that I learned from etrade.com training video: if people start selling then you want to be a seller, if people start buying then you want to be a buyer, DON'T BE A HERO.


 

Demand and supply, as with any other good/stock/currency.

However, BTC is a subject to a lot of manipulation, speculation and rumors that can easily destabilize the market. That's where you get such huge volatility.

BTC is still immature, it's influenced by emotions, hopes and even greed that affect demand&supply levels. No other world currency nor good can go from $60->$1100->$400 in such a short period :-)

Now the bitcoin in good position, its a good symptom

in a normal environment, buy and sell orders control price a lot

The question is the same as what determines the value of anything. Mentioned above, supply and demand.
Remember, bitcoin is real and therefore has a value.

today btc price is little bit low

Why would a new coin has good supply and good demand?

Yeah indeed, that's just nonsense.

It might have high supply because it was premined. Which is usually a bad sign.
It might have high demand because it has new and unique features.
Probably no alt coin has high supply and high demand. It just makes no sense, as they would cancel eachother out and result in either low demand or low supply. I just assume "good" here means high.

Factors can be positive news such as china launching btc atm.

Most people though, is treating this like a stock, so similar to a stock news.

If that makes sense, but most people just ignore the news since where its headed since the day when it had 0 value.

No alt coin has a high demand or they would be valuable, lol.

regulate the course  - gossips

What do you mean?

Huh? I don't get it.

Maybe he means try to regulate the gossip, but only people can do that and stop listening to it or selling because of it.

lol you cant regulate gossip.

but you can send in the right direction

Mostly it depends on supply and demand. Certain political events and natural disasters will also have an impact

Unless you kill all suspected blabbermouths. :O

Most of the guys who wanted to buy when the price was super low in fiat just got their account approved/verified.

response and request

The general long term trend is supply and demand driven, but yes, the day to day, week to week trends depend on mass psychology.

For example, MtGox ceasing trading should have been great news, because if they've "lost" 600,000 BTC, whether by rendering it permanently inaccessible due to buggy software, or by it actually being stolen, they were representing that 600,000 more BTC were available for trade than there actually were. This is some ~5% of the total BTC mined, or possibly 30% of the BTC day to day liquidity, if much of the rest of it is held long term in cold wallets and is not "up for sale" per se.

Any logical analysis should tell you that if there is 5-30% less of something than expected, the price should go up!

as far as I know, the price in china is the most important factor, there are too many bad guys want to short of the market to make more money or bitcoin, just because they lost lot of bitcoin in MTGox. And the government attitude is ambiguous.

Price goes down , when more bad news.

Well you know what to do about that, buy, drive up the price, and bankrupt them :D

Depends if china is buying or not!

In short term, it is possibly right.

Great company accept it.