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Author Topic: What's the reason behind increasing or decreasing price of bitcoin daily?  (Read 820 times)
swastik384
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December 15, 2016, 07:57:06 AM
 #1

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh
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December 15, 2016, 09:31:18 AM
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Simple answer is like other trading assets bitcoin price also fluctuates according to demand and supply.

For example take a look at bitcoin price trend for last few years you will see uptrend which is because bitcoin that generate/mined per 10 minutes has been decreased from 50 bitcoin per block to 12.5 bitcoin per block which shows supply of bitcoin is getting limited where as you can see marketcap of bitcoin have grown exponentially which shows huge demand for bitcoin.

So when some big traders or group of traders sell large amount of bitcoin for fiat = Decrease marketcap and also there will be price dump
When old/new traders buy back bitcoin with fiat = marketcap will increase so that price will be pumped.

Price swing is normal for any trading assets including bitcoin but price of bitcoin is more volatile due to comparatively low marketcap it have.

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December 15, 2016, 10:10:31 AM
 #3

it is all about supply and demand, when demand goes up (more people want to buy bitcoin) price goes up and when supply goes up (more people wanting to sell bitcoin) price go down. and this happens every day and every minute as traders on the market want to buy and sell bitcoin (and generally anything else like stocks) and make profit every day from doing so.

I suggest reading some articles on investopedia. you can understand so many good basic information and it doesn't matter what they are about (it can be stocks, gold or forex) in the end they are all similar markets in many aspects.

an example: Stocks Basics: What Causes Stock Prices To Change?

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December 15, 2016, 10:19:00 AM
 #4

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

i think the factor is people want to buy and sell bitcoin and make a movement of the market then they can make money with easy. its the same as real money and other, for small examples for this, we can see in money changer in every city. people need to buy and sell the currency to buy something.
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December 15, 2016, 10:24:34 AM
 #5

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

Its exactly the same, all currencies fluctuate up and down daily based on perceived strength or weakness of each.  Most western currencies move very slightly each day, but some other world currencies are more volatile than bitcoin.
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December 15, 2016, 10:31:18 AM
 #6

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh
Increasing and decreasing price of bitcoin daily it is because of speculation the traders for making money from trading,
But for factors increasing and decreasing price bitcoin for long time everything depend on the developers who make updating, comunity and investors who put the money in bitcoins. (Fundamental of bitcoins)
Not all of same with real money but there are impact on price of bitcoin, bitcoin is like stock without dividen and be gained is like gold by mining.
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December 15, 2016, 11:25:05 AM
 #7

The increasing or decreasing of price of bitcoin daily is because of its transactions like trading and conversion. Its price is volatile and it fluctuates in no time. As you observe in the bitcoin chart, the value now goes high because of the supply and demand and also the effect of halving...

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December 15, 2016, 11:47:14 AM
 #8

The psychology of masses and buy/sell bitcoin can change the price daily. We know that most of the people use fiat currency as a medium of exchange compared to bitcoin. Bitcoin at most has value in exchange markets so its price change very easy compared to fiat currencies. That's in my opinion the main reason we have fluctuations of the bitcoin price daily.  
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December 15, 2016, 11:49:25 AM
 #9

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

Yes that is supply and demand on the free market, you got it in one brother that is one of the reasons that affect the value of Bitcoin.
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December 15, 2016, 11:51:08 AM
 #10

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

Market demand. Supply. A dash of hype & a splash of FUD every now & then.
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December 15, 2016, 03:23:51 PM
 #11

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

NO NO NO . Bitcoin has a limited supply of 21 million unlike paper money who have billions so if the demand increases the price will also be .Since everyday many people is selling and buying bitcoins thats why the price changes everyday

This article will help you to understand the basics of bitcoin hope it helps
https://www.cryptocoinsnews.com/affects-bitcoin-price/

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December 15, 2016, 05:18:36 PM
 #12

Fluctuations in bitcoin much the same as real money, gold, etc. It was very reasonable fluctuation occurs in bitcoin. I think probably one of the factors that affect bitcoin fluctuate daily is the small volume of bitcoin spread across the network. As we have seen, the absolute price of Bitcoin is determined by supply and demand. If many buy Bitcoin, then the price will go up and also works in reverse. Perhaps that is one example of that affect fluctuations bitcoin.
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December 15, 2016, 05:42:09 PM
 #13

it's about having more buyers than sellers when it increase, and those sellers become buyers, and the opposite when it's dumped, it's simple as that no magic there, also you can say it's about the trend, if many see the price will increase because of good news, the price will increase even further etc...
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December 15, 2016, 06:05:55 PM
 #14

The main reason behind this increase and decrease is due to the people selling and buying bitcoins.  If a person sells bitcoin, it will process the buy order which is lower in BTC price than the Sell wall . If the transaction is complete then the current price where bitcoin is sold is then publish or announced to the public.  And the same thing when bitcoin is being bought where it process the sell order transaction which is higher than the current price and then it will be published.  Once there is an exchange of buy and sell , there will also a different price resulting to increase and decrease of bitcoin price.  But when the market become bullish and sell order in the sell wall is continuously processed, then we can see a continous increase in price which mean people are buying bitcoin. And the opposite will happen when the buy wall is being processed.

This is more likely affected by News, developments, updates and possible price manipulation of whales.

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December 15, 2016, 06:16:33 PM
 #15

The reason of increase and decrease in bitcoin price regularly is due to the variation happening with the buying and selling of bitcoin in accordance to time period and increasing adoption. At times the variation happens due to panic buying and selling from big traders who circulate bulk transaction causing fluctuations.

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December 15, 2016, 07:17:21 PM
 #16

What everyone will say is that its the forces off demand and supply and that's what I settle with to console myself as per my understanding of basic economics but what I am really concerned about and I am sure you will want to understand is what factor is behind the demand and supply to change? The answer to that is what quite a number of people will not be able to answer all are just guesses. So I advise, its OK not to know all the answer... Just do your and leave the rest...



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December 15, 2016, 08:10:38 PM
 #17

What everyone will say is that its the forces off demand and supply and that's what I settle with to console myself as per my understanding of basic economics but what I am really concerned about and I am sure you will want to understand is what factor is behind the demand and supply to change? The answer to that is what quite a number of people will not be able to answer all are just guesses. So I advise, its OK not to know all the answer... Just do your and leave the rest...

Supply and Demand is the basic and overall factors which affect price, for every currency.
More specific factors, it's comes mostly from news, when media is the big weapon here, the community, since bitcoin is become grow with community, it's also the community needs to take a good development for bitcoin and when there's so many altcoin out there, it's also affect bitcoin price.

You can read this: https://cointelegraph.com/news/why-bitcoin-price-changes
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December 15, 2016, 09:20:30 PM
 #18

Bitcoin is not real money and we cannot fully compare bitcoin and real money they have things alika in anyways. But also they have a lot of differences. Bitcoin price is mostly determinated by supply and demand. So more people use it the price will be higher.

   
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hase0278
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December 15, 2016, 09:48:57 PM
 #19

Bitcoin's price is increasing or decreasing in price daily sometimes hourly because it is in a free market. If someone buys, then the price go up after he/she have bought all of those who are set sold by another bitcoin user. If someone sells, those who set their buy orders will get bitcoin and if all of their request have been fulfilled, then the price will go down a little. That's why bitcoin's price go up and down.

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December 15, 2016, 10:11:02 PM
 #20

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

Price fluctuations and the so called volatility.

Bitcoin is real money literally but it doesn't mean it has the same status of volatility with fiat or any assets like gold. One factor that affects the impact of fluctuations in any kinds of assets is the people's response in the market by doing buy and sell. Bitcoin traders are always on the move 24/7 actively that's why you will noticed some drastically changes every minutes or even for a seconds in bitcoin price.

Since bitcoin can quiet be manipulated or should I say, big hoarders can create a panic resulting for a big price increase or decrease, active price fluctuations is really present in bitcoin.

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