Why Is Bitcoin's Value So Volatile?

[diouf67]

Well it helps to first think about the determinants of price and those are supply and demand, given that supply is relatively fixed it is clear that demand has a large effect on the price, so then the question more becomes one of why is demand volatile. I think to answer this we must look at why people demand bitcoins and I think we will find that a large part of the variable demand comes from speculation, people buy bitcoin to make money, this in turn pushes the price up and when they've made enough or lose confidence they dump and the price falls.

[1715132079]

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[1715132079]

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[Michael-crypto]

It's very volatile because it's an emerging market with a lot of potential. There is a lot of tension, activity, and new players in crypto markets.

[Astvile]

because bitcoin is till in the process of develop and is still young despite being around in 2009. the market too is still small that it can be affected by news that can make people sell their coins in panic.

[Osarman]

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

The basic principles of marketing is with high demand and low of supply then the value will increase this simple concept will explain your entire question. There will be no accurate predictions if you want to know when the price will rise or decrease it will always be depends on the flow of the market.

Yeah the bitcoin is being unique because the bitcoin is being famous and the bitcoin price will increase more and more I hope this will be the fame of the bitcoin that will make the bitcoin volatile as the value of the bitcoin will increase more and more.

I can see how fast the value of the bitcoin is now increasing at the high level and the time is not far when all the people will start buying the bitcoin because of the highly increasing price.

[BlueStackz]

Bitcoin prices are always unstable. Because its price goes up. According to market demand, it increases and decreases. Bitcoin is unstable, so its risk is high. And the profit is much more. So if you are investing in the long-term, then you will feel uncomfortable and will be of great benefit.

The demand is one of the big player here because that is the only reason why the price of bitcoin is moving down or up and because of the demand it can easily dictate the price of any kind of coin. If the people will get attracted to the positive and advantages of bitcoin then there will be a huge pump in the price and that will benefit all the bitcoin users for sure.

Bitcoin value is so volatile just because of the difference in the demand and supply rate. We all know that there is only a limited number of bitcoins in the world and on more are being manufactured by the holders of the cryptocurrency business around the world.

In addition to this, the investment rate has reached the maximum possible value and this adds to the decrement of prices suddenly that are a sort of unexpected one. The prices catch up a higher level when the trading is lesser and investment rates are preferentially low.

[noel2123]

Bitcoin prices are always unstable. Because its price goes up. According to market demand, it increases and decreases. Bitcoin is unstable, so its risk is high. And the profit is much more. So if you are investing in the long-term, then you will feel uncomfortable and will be of great benefit.

The demand is one of the big player here because that is the only reason why the price of bitcoin is moving down or up and because of the demand it can easily dictate the price of any kind of coin. If the people will get attracted to the positive and advantages of bitcoin then there will be a huge pump in the price and that will benefit all the bitcoin users for sure.

Bitcoin value is so volatile just because of the difference in the demand and supply rate. We all know that there is only a limited number of bitcoins in the world and on more are being manufactured by the holders of the cryptocurrency business around the world.

In addition to this, the investment rate has reached the maximum possible value and this adds to the decrement of prices suddenly that are a sort of unexpected one. The prices catch up a higher level when the trading is lesser and investment rates are preferentially low.

agree if many are selling than buying then bitcoin price will surely drop , additional is the FUD's if people will believe those it will make them hop to what  they believe more profitable coins , there is many factors that affect bitcoins volatility so make sure that you take advantage on this to get a good enough of profit on the near future.

[tommy05]

Bitcoin prices are always unstable. Because its price goes up. According to market demand, it increases and decreases. Bitcoin is unstable, so its risk is high. And the profit is much more. So if you are investing in the long-term, then you will feel uncomfortable and will be of great benefit.

The demand is one of the big player here because that is the only reason why the price of bitcoin is moving down or up and because of the demand it can easily dictate the price of any kind of coin. If the people will get attracted to the positive and advantages of bitcoin then there will be a huge pump in the price and that will benefit all the bitcoin users for sure.

Bitcoin value is so volatile just because of the difference in the demand and supply rate. We all know that there is only a limited number of bitcoins in the world and on more are being manufactured by the holders of the cryptocurrency business around the world.

In addition to this, the investment rate has reached the maximum possible value and this adds to the decrement of prices suddenly that are a sort of unexpected one. The prices catch up a higher level when the trading is lesser and investment rates are preferentially low.

agree if many are selling than buying then bitcoin price will surely drop , additional is the FUD's if people will believe those it will make them hop to what  they believe more profitable coins , there is many factors that affect bitcoins volatility so make sure that you take advantage on this to get a good enough of profit on the near future.

FUD's may kill other coin but not bitcoin ! there was many FUDs that has been thrown to bitcoin for the past years but still managed to get back in track ! there was really no reason to be fear because bitcoin has a strong community and will not die that easily ! actually FUDs was good because it enables me to buy some bitcoin for a cheap price and sell it later when the price is already high

[margarete11]

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Because every second and every minute there a lot of people buy and sell their bitcoin so the markets is also volatile and bitcoin just only in my opinion i don't know if it's correct .

It was correct don't worry the demand and supply  was always relative to bitcoin price if every minute there is more sell than buy then bitcoin price was likely to fall down however when the thing is on the other way around many buy and few are selling then we could expect that the price will go up

[richmcrich]

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Bitcoin value is so volatile  because we cannot control the prices in black chain market.bitcoin price is not controllable because of some many circumstances,like this coming segwit2x hardfork,that most of all transaction have a transparency,that's why we can not predict the proper value of bitcoins,sometimes its pump,and sometimes its dump.

As far as volatility is concerned it is totally depending in the user trend and so far the prices are gone high just because of the user high demand so there is no depending on any fork as volatility will be controlled there will be no profit for anyone it will be like gold and other investment which prices will stay at the same level so for me volatility is blessing and it is the leading thing that make btc attractive so accept it.

[barbara44]

It sometimes is dependent in the present new's that's impacting btc just like when china ban bitcoin it has a excellent impact in the cost of btc and also the fundamental thing in economics the demand and supply btc price and every other coins depends on it..

Yes, the price of bitcoin depends upon its demand, if it demand goes on increasing then its price also increases but if it demand decreases so then its  price is also decreased. Its price is only due to its demand. In case of China, a time will come when it will regret on banning bitcoin.

Yes, it discourages the banking system and is facilitating people but on the other hand bitcoin is developing the country and increasing its trade.

[youdacapt]

It sometimes is dependent in the present new's that's impacting btc just like when china ban bitcoin it has a excellent impact in the cost of btc and also the fundamental thing in economics the demand and supply btc price and every other coins depends on it..

Yes, the price of bitcoin depends upon its demand, if it demand goes on increasing then its price also increases but if it demand decreases so then its  price is also decreased. Its price is only due to its demand. In case of China, a time will come when it will regret on banning bitcoin.

Yes, it discourages the banking system and is facilitating people but on the other hand bitcoin is developing the country and increasing its trade.

I still believe bitcoin prices can be played in the short term, proven there are some unscrupulous people who can vibrate the market to buy back bch at some time ago, crypto traders have not fully thought to be consistent and still often stuck in the hype. This movement causes volalitas often to exceed expectations, and I think this is still within reasonable limits. The government's attitude is just one factor that will make the tsunami waves bigger.

[ricardobs]

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Maybe it has to do with the volume in the market that is also related with the demand that it is getting. Bitcoin is volatile for the fact that its market price changes everytime. Fluctuations is natural that its value sometimes decrease and sometimes increases Don't be confused into buying and investing to Bitcoin just because its value someimes fall, because its value is as of this moment, is continuously increasing.

An economist was telling me that we even haven't seen anything yet in the value of bitcoin. We are just having some few players heading in and over time, there would be so many development that would make the usage of bitcoin and other cryptocurrency even more useful than just being an asset which would make more people to be aware and see that value at that point as a very lovely thing to get.

With that, volatility will always keep on until maybe we are able to find a balance at some point. However, volatility can never be stopped, cause even normal currencies are.

An expert said that bitcoin volatility will be less happen if bitcoin become more mature and has high liquidity. There are big volume of bitcoin are being trade in exchange, wide scale selling of bitcoin is affect a sharp decline in price. Thats why panic selling is closely related with volality, traders are just want to get profit from their invesment anytime they have chance.

Bitcoin is very volatile because it uses a decentralized system and a huge market share of more than 100 billion USD. Volatile gets people interested in investing in hopes of getting a profit from a price increase someday.

Why should anyone be confused on why Bitcoin’s price is volatile? We shouldn’t be, cause this is the reason you’re grabbing big bucks out of it. Bitcoin is not a payment method as some guys would always say, but it’s an investment and being volatile is what attracts the interest of investors. If the price is stable, you won’t have interest in it, and people will even be scared of investing money into it.

[HalfDeck]

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Maybe it has to do with the volume in the market that is also related with the demand that it is getting. Bitcoin is volatile for the fact that its market price changes everytime. Fluctuations is natural that its value sometimes decrease and sometimes increases Don't be confused into buying and investing to Bitcoin just because its value someimes fall, because its value is as of this moment, is continuously increasing.

An economist was telling me that we even haven't seen anything yet in the value of bitcoin. We are just having some few players heading in and over time, there would be so many development that would make the usage of bitcoin and other cryptocurrency even more useful than just being an asset which would make more people to be aware and see that value at that point as a very lovely thing to get.

With that, volatility will always keep on until maybe we are able to find a balance at some point. However, volatility can never be stopped, cause even normal currencies are.

An expert said that bitcoin volatility will be less happen if bitcoin become more mature and has high liquidity. There are big volume of bitcoin are being trade in exchange, wide scale selling of bitcoin is affect a sharp decline in price. Thats why panic selling is closely related with volality, traders are just want to get profit from their invesment anytime they have chance.

Bitcoin is very volatile because it uses a decentralized system and a huge market share of more than 100 billion USD. Volatile gets people interested in investing in hopes of getting a profit from a price increase someday.

Why should anyone be confused on why Bitcoin’s price is volatile? We shouldn’t be, cause this is the reason you’re grabbing big bucks out of it. Bitcoin is not a payment method as some guys would always say, but it’s an investment and being volatile is what attracts the interest of investors. If the price is stable, you won’t have interest in it, and people will even be scared of investing money into it.

Since the value of Bitcoin increased, I do not want to call it is a currency again, because most of the Bitcoin user used Bitcoin as an asset to trading and holding to earning money and look the profits. So, nowadays, the difinition as cryptocurrency is not reasonable for Bitcoin. Altcoins can be call as currency.

[jostorres]

Its volatile because there is no general opinion regarding how to prie a bitcoin. And the fact that half individuals which have traded bitcoin, absolutely pull at it  its much more the buyer maturation however, individuals react in this room on the smallest news. this lack of buyer training is also evident by the quantity of ripoffs that can multiply right here.for reasons various that what have already been expoused within this line regulation will repair this. however i dont believe people will ove the Inchfix" (a lesser, much more stable price).

Bitcoin value is so volatile because of the fact that is one of the decentralized economies and moreover, it has to go through different phases of investment and the rates are a subject to change thoroughly then it comes to the international market.

When the prices get low, the reason behind them is the ever increasing investments and high share holders of this currency in the exchange. One must become familiar with this characteristic of coins as soon as possible so that he could avoid the fear of usage and storage of these coins.

[tailwate07]

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Bitcoin's value depends on the investors and users. The more people investing and holding bitcoin, the higher the price goes. It really depends on market demand. So, expect bitcoin to rocket-up because more and more people are getting interested in bitcoin because it is really profitable.

Bitcoin is an asset, and as usual they always start up with a low amount and a very low market cap. Its price fluctuates to any direction depending on investors, how much they invest and how much they withdraw. But sometimes, I get confused when I’m trying to compare gold and Bitcoin.

Unlike Bitcoin, gold is always less volatile and makes little changes, despite the fact that millions (or possibly billions) of people from around the world invests on it.

A huge asset indeed. Remember during the boom of gold at some point, it also started this way and there was a point when there was just that booming trend due to the demand. However, gold even though being an asset is controlled, while bitcoin is not, and the masses are the one determining what they are willing to pay for it which makes it even better. It is very useful and as long as it keeps being useful, there would always be demand for it.

What gold boom do you refer to specifically?

If you refer to gold rising in the early 2010's, this rise was primarily driven by insane amounts of dollars being poured by the FED into the US stock market which also affected the prices of gold (which is a commodity, not a stock, but still). When the FED had finally ended their QE games, gold quickly retrieved to its "fair value", where it stays till now. If the American dollar is set to be devalued massively in the future (an unlikely event, anyway), gold will boom again, but its real value would remain the same unless there is a catastrophic economic meltdown across the whole world

Yes, The decrease in volatility will automatically lead to decrease in the profits generated by bitcoin. Bitcoin is highly in demand due to its volatile nature and it is able to amaze all of us just because of its volatile nature. I am not in favor of bitcoin for becoming stable just like gold. People will then lose interest in bitcoin. Even if it goes mainstream, bitcoin should maintain its volatile nature.

[w33man]

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Well, I think that the reasoin behind bitcoin’s volatileness is the fact that it is not legal yet. Despite bitcoin not being legal, still a lot of people prefer to use it for transactions and as well for earnings. Another factor is also the competition with other cryptocurrencies.

[sumanto]

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

bitcoin will always be expensive its price do not miss the opportunity when you can buy at cheap price just buy and sure that the next year bitcoin will be very expensive

[Mehedi72]

I also think so but Btc price is raising so fast and investment with it is profitable.  Besides bitcoin is the best currency and method of payment,  very easy to use, help to earn and and so i use btc

[Majesty0109]

Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors. Bitcoin’s volatility at the present makes it a somewhat unclear store of value, but it promises nearly frictionless value transfer.
Little option value to large holders of the currency, Bitcoin volatility is also to an extent driven by holders of large proportions of the total outstanding float of the currency.

[BlueStackz]

Obviously basically we should really be aware of price motion of bitcoin that certainly really changes from time to time and we should be able to make use of bitcoin price itself to achieve profit. As you may know that the value of Bitcoin it had been depends upon the guidelines of supply and demand.  the cost is dependent upon how many economies agreed to pay. If a large number of people want to buy Bitcoin, then the price will go up. If more and more people want to sell Bitcoin, then your price lowers. I am also so far still trying to deepen relating to this to more learning (understanding more) the motion of bitcoin price in the other things once again.

The only thing which is making not only bitcoin but almost all the coins which are there in the world of crypto currency as more volatile currencies is the increasing demand of all the coins especially that of bitcoin in the international market.

With the passage of time, there are more number of people who are getting to know about bitcoin and are ready to invest in bitcoin which is resulting in more volatility.