How Does Bitcoin Gain/Lose Value?

[pooya87]

I'm played bitcoin three years ago , when bitcoin still $275++ and I was so amaze that bitcoin able reach this far
I'm also keep telling my friend and my family that investing bitcoin are better than gold recently so it's worth to invest although bitcoin value still volatile and consider as risk investation

Not bad, I am pretty sure that a bunch of people in this forum purchased Bitcoin around that price range and they might’ve exchanged their coins into some fiat. If people only learnt how to hold their coins then the price of Bitcoin would be more expensive than it is right now.

just holding your bitcoins is no better than hiding money in your mattress in my opinion. it is best to both sell at least some small amounts when there is a major rise and also most important of all it is best if you spend your bitcoin.

if we as the users of bitcoin don't help bitcoin grow by using it as a currency we can't expect it to grow on pure speculation and trading. if the currency part fades away we will see $800 swings in 2 days for the rest of our lives. and finally people will stop buying bitcoin and move on.

[1715267237]

1715267237

[pitbully2000]

people buy BTC
people sell BTC
Hope that answers your question 

[maydna]

the only thing that i know so far, its because supply and demand in the market. beside that, the reason for the price is suddenly down or up is because people gets panic when they see the price is up or down so they are thinking that they should not to be late to buy or sell bitcoin. the other reason is maybe the big players want to control the market which is really difficult because in the market, there are so many big players and i don't think that every of them have one the same purpose.

[serjent05]

It is the demand that give Bitcoin gains in price.  If there is more people wanting to have bitcoin than the available supply in the market then the price will likely climb.  And when there are lots of bad news about bitcoin, FUD is everywhere, the price suffers.  Weak holder are forced to sell their holding in fear of losing the value of their holdings.

[lixer]

Hey all

This has been a question bugging my head for a while now, and with the $3k mark that we recently hit and the drop to $2.5k.

How does BTC gain or lose value? And how does BTC 'pop', like lose 500 USD worth over a day?

Price moves up when more people want to buy than want to sell (meaning sellers can afford to charge higher prices) and price moves down when sellers outnumber buyers (so buyers can afford to make lower offers).

Thinking about making a difference is really a good. Everything loss and gain values even human being do so. as in Bitcoin the price is always keep moving up and down it is because of people when they withdraw their amount at the same time.

But some people withdraw a large amount it then effect it but now a days the buyers quantity is increasing then sellers for the Bitcoin is going upward.

[nethan1btc]

Bitcoin will loss it's value when many will sell their holdings and buying also declines it's demand, that's why value also losses. The value will gain also if demand rises in the market price value, and that's the reason why it fluctuates in an unpredictable movement. We can also see that price sometimes decrease rapidly and eventually rises again, because investors re invest again after they dump their coins.

[HasHe]

Hey all

This has been a question bugging my head for a while now, and with the $3k mark that we recently hit and the drop to $2.5k.

How does BTC gain or lose value? And how does BTC 'pop', like lose 500 USD worth over a day?

Increase or decrease in bitcoin price is directly related to increase or decrease in demand for bitcoins.As we all know,since bitcoin has been legalized in japan,there is a huge demand for bitcoins.Also,south korea has joined the rally and 1 bitcoin was even sold at$4,500 in south korean exchanges a week before.These were the main reasons for immediate increase in bitcoin price.

[buwaytress]

Or sometimes the price could be affected by the price of the dollar also. If dollar is going down also the btc would go up or down and in reverse. But what matters is the most is that btc is a growing investors in any government or even businessmen. I would agree that prices also depends on the buys and consumers but this is just to avoid another clog when people would start selling when the price has risen up. They would tend to lower it again for another time so that buyers can now again invest.

I used to think this was important to Bitcoin too... but I see now that Bitcoin doesn't seem to quite work the same as fiat currency like that. For example, the CHF might depreciate against USD but that won't dictate how it performs against EUR or GBP.

BTC, on the other hand, if it drops 10% against USD, will drop 10% against all currencies. So my guess is that BTC is somehow pegged to the dollar? Actually this might deserve its own question.

[n0ne]

Bitcoin value gain/loss happens in accordance to the circulation happening around the network with relative to the number of coins that has got generated. This is what some times the price manipulation happens when the large volume bitcoin holders suddenly release the bitcoin to the network.

[maokoto]

I think that, for the most part, it has the value of the money people have put into it.

Imagine there were only 2 bitcoins. One is owned by user A, who paid 2000$ for it. The second is owned by user B who paid 1000$ for it.

Value of the whole Bitcoin network should be around 3000$ (A+B). Yeah, it will be more if there are people that want to pay more for it... but I think it is a good reference.

[jc89]

Hey all

This has been a question bugging my head for a while now, and with the $3k mark that we recently hit and the drop to $2.5k.

How does BTC gain or lose value? And how does BTC 'pop', like lose 500 USD worth over a day?

The price of Bitcoin resides on the demand and supply. As based from the law of supply and demand, if the demand is high/low with respect to the total supply available in the market, then the price will increase/decrease respectively. So the current decline we are seeing these past days may be due to some people selling their coins just to get some profits.

Let us put it this way,

Price increase:
You want to buy............................+Demand
You bought some coins... ...............-Supply
I want to buy................................+Demand
I bought some coins.......................-Supply

Price decrease:
You sold some coins.......................+Supply (Constant Demand)
I sold some coins...........................+Supply (Constant Demand)

[SushiMonster]

Well if there's a lack of demand for bitcoin I think the price will drop - if there's a huge demand the supply will eventually rises, simple economy.