What power does Traders have on the Bitcoin price ?

[AltcoinAuthority]

Btc price may not be controlled by traders anymore but there is no denial that some exchanges do manipulate it heavily.We in india always have to pay a higher price than international market because of manipulation of some exchange and wallets

I think that the price of Bitcoin is much more easier to manipulate in the 3rd world countries and other countries other than the main ones that are more lenient on Bitcoin exchanges because there is not much Bitcoins being put on the order books. I usually see Bitcoin having a high price in the India region and I don’t really know why someone would pay so much for that when they could just use LocalBitcoins.

[radamiel]

Btc price may not be controlled by traders anymore but there is no denial that some exchanges do manipulate it heavily.We in india always have to pay a higher price than international market because of manipulation of some exchange and wallets

I think that the price of Bitcoin is much more easier to manipulate in the 3rd world countries and other countries other than the main ones that are more lenient on Bitcoin exchanges because there is not much Bitcoins being put on the order books. I usually see Bitcoin having a high price in the India region and I don’t really know why someone would pay so much for that when they could just use LocalBitcoins.

True, if the market capitalization is small, people with lots of bitcoin can control the bitcoin price, but globally it is not possible. I think the issue is the main reason for the bitcoin price drivers

[deisik]

Btc price may not be controlled by traders anymore but there is no denial that some exchanges do manipulate it heavily.We in india always have to pay a higher price than international market because of manipulation of some exchange and wallets

I think that the price of Bitcoin is much more easier to manipulate in the 3rd world countries and other countries other than the main ones that are more lenient on Bitcoin exchanges because there is not much Bitcoins being put on the order books. I usually see Bitcoin having a high price in the India region and I don’t really know why someone would pay so much for that when they could just use LocalBitcoins.

True, if the market capitalization is small, people with lots of bitcoin can control the bitcoin price, but globally it is not possible. I think the issue is the main reason for the bitcoin price drivers

It is still possible but it simply doesn't make sense

There are quite a few multimillionaires sticking around the world and looking for sources of reliable income. What they are looking for is nowhere near hundreds of percentages annually (many would be quite happy with 20% that Warren Buffett has been making for decades), but the price of the question is in the billions of dollars. Bitcoin is simply not ready to swallow and devour this amount of money. If that much money gets poured into Bitcoin within short time, it would wreak total chaos at markets

[Omega Weapon]

Or they are simply slave of the system like every one of us ?

I think traders are just sheep like the rest of us following the general trends and hoping to get rich quick, there are too many whales for them to be able to realistically collude enough to affect the price substantially.

While many traders try to follow the trends the truth is there are many traders that are anti trends, they try to time the market and see when the trend seems to be about to change, when this happens they short bitcoin, obviously the problem with that strategy is if they time it wrong then they can lose a lot of money if a big bull run follows.

[ktabb]

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts 

Bitcoin price is controlled by small, retail investors, which is harmful to it as a currency. It means that the price is driven by mob mentality and the market is very inefficient (the price and intrinsic value rarely match). So the answer to your question is yes, regular every day bitcoin investors like the people on this forum do affect the price. They don't affect it individually, but together they do.

However, for bitcoin to grow as a currency, it needs its price to be controlled by institutional investors instead (such as hedge funds, banks, etc). I discuss why in a post here if you are interested: http://demoinvestor.com/articles/00000001

[ocid]

In all trades that determine the price is the trader itself where the number of requests and offers received so that the price provisions can only be done by all trades.

[nethead]

For now traders are the determinants of bitcoin pricing and the forces of demand and supply are the tools in their hand. The market capitalization of bitcoin which stood at over $41b today are sign that bitcoin is not control by individuals, governments and nations.

[jennywhzz]

Bitcoin, and alt coins in general, has easily the largest percentage of unreported lost monies.  There is a vast number of wallets that cannot be retrieved with BTC in them and that amount is still part of the overall circulation.

[onrise]

For now traders are the determinants of bitcoin pricing and the forces of demand and supply are the tools in their hand. The market capitalization of bitcoin which stood at over $41b today are sign that bitcoin is not control by individuals, governments and nations.

Certainly no one control the btc prices. But as a country if we would have to say then it will be China. So majorly if they bring a transformation changes overnight in their bitcoin policies then certainly the prices will get impacted in a very big way, Else generally the price may not be significantly impacted as such even if bunch of people may come together and try to buy/sell or create a short term demand supply gap.

[rngkll]

A lot of power. That's why the price can be stable. Traders are a necessary work-force that keep things under the markets control.

[jovs]

the bigger it becomes, the harder it is for small groups of people to control the price, but it is still possible.

no one sets the price other than the people buying and selling on the exchanges and there probably ain't very many who do it full time. but all it takes is one surge of serious demand and the coins they use to play are eaten up and never returned.

in the early days on mt gox there was one guy who was putting up walls of thousands of coins, the chart was a vertical line into infinity. some other guy came along, bought it all and he was never heard from again.

Bitcoin always have a development to have. Yes I agree that the more development happened to bitcoin the more transaction can possibly made by higher people because its price is way to high to do. And the changes of the price of the bitcoin also the traders point to trade because in trading you have to monitor the changes of price for you to earn and have an income on trading.

[Omega Weapon]

Btc price may not be controlled by traders anymore but there is no denial that some exchanges do manipulate it heavily.We in india always have to pay a higher price than international market because of manipulation of some exchange and wallets

I think that the price of Bitcoin is much more easier to manipulate in the 3rd world countries and other countries other than the main ones that are more lenient on Bitcoin exchanges because there is not much Bitcoins being put on the order books. I usually see Bitcoin having a high price in the India region and I don’t really know why someone would pay so much for that when they could just use LocalBitcoins.

The reason of why people buy in local exchanges at higher prices is very simple, they do not have access to cheaper coins and they still want to buy bitcoins, this is a classic case of supply and demand, there is a lot of demand but there is not enough supply so the price goes higher and higher,  another reason may be they just don’t know better and buy from the local exchanges because they do not know they can buy cheaper bitcoin elsewhere.

[cafucafucafu]

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts 

Traders have all the control over bitcoin price.

Now, you and I can both be traders as long as we sell/buy bitcoin actively. There is no real "minimum" per se for you to be classified as a trader. But the more capital you hold, obviously the more influence you are going to have on the price.

Market capitalization rising is good, it does reduce manipulation to some extent. But the fact is that early adopters still hold bitcoin - so their share of the entire fiat market capitalization remains the same as their bitcoins has risen in price as well. So if they dump their coins, there will still be a major impact on the bitcoin value.

We all hate price fluctuation, but unfortunately that's what makes bitcoin special. It is completely out of the grip of governments.

[bit1]

A lot of power. That's why the price can be stable. Traders are a necessary work-force that keep things under the markets control.

First we would have to differentiate the type of trader, those who have more coins or money they could certainly exert more influence than one or more small traders, so in function of your investment and strategies seek to maximize your profits trying to manipulate the price, but they are only part of the puzzle, there must actually be many more factors that significantly affect the price even more than traders.

[iamTom123]

Traders have a good place in influencing the ups and downs of a certain cryptocurrency. Traders are bringing in the demand as well as the supply in the whole trading system. Although I would say that it is the general demand and supply of the coin that makes the great impact for its price.

Traders can be liken to agents bringing in the juice or the fuel needed for cryptocurrency to get into the roller coaster ride experience. I am just a new trader in Bittrex but am starting to see the whole picture.

[Esphere.in]

Good job comparing the combined valuation of fiat currencies,just consider it has two different form of currency. The big whales you are talking about does not have that much significant amount of control over the price of bitcoin and if they did they could have done that already.Just embrace the current volatility and try to make some profit.

[audaciousbeing]

Hi here !

So, the captitalization of BTC reached 40B $ , this is nice but not huge at all compared to FIAT currencies.

My question is : with such a "low" amount of money, does the traders have real power over the Bitcoin price ? I always heared about the natural inflation, simply more demand etc... But don't you think that if a lot of early investors with huge amount of BTC could gather and have control over its price ? Or they are simply slave of the system like every one of us ?

I'm waiting for your toughts 

The traders have influence on the price of bitcoin to the best of my knowledge because those money bags you are referring to are also traders but the issue is just the volume they control whether individually or collectively is enough to make a difference considering the market capitalization which is just like a bucket of water from a pool in comparing it with foreign exchange market and other stock exchange market.

[Omega Weapon]

Traders have a good place in influencing the ups and downs of a certain cryptocurrency. Traders are bringing in the demand as well as the supply in the whole trading system. Although I would say that it is the general demand and supply of the coin that makes the great impact for its price.

Traders can be liken to agents bringing in the juice or the fuel needed for cryptocurrency to get into the roller coaster ride experience. I am just a new trader in Bittrex but am starting to see the whole picture.

Basically this, traders bring liquidity to a market that is full of people not doing anything with their coins, just think of satoshi approximately he has 1 million coins that is about 6.5% of the whole supply and those coins are not moving at all and we have no reason to think those coins are ever going to move at all, traders help this situation by being willing to buy and sell bitcoins.

[Bagaji]

One cannot completely take away the influence of buyers and sellers  (i e. Traders) from not affecting the market value of Bitcoin. This is because the forces of demand  ( buyers) and supply  (seller's) always has a positive or negative impact on the market value of Bitcoin. In summary, traders has both negative and positive impact on bitcoin price.

[MFahad]

Alt coins, and Bitcoin, deemed by Florida courts as "meaningful value tokens", behave differently in the currencies markets as other world currency.  Normally, if the US dollar rises in the markets, that means at least one other currencies has fallen to some degree, Bitcoin can gain value and all FIAT currencies actually benefit from the additional movement power that increased value has brought to the world.