Why Is Bitcoin's Value So Volatile?

[Pixyoxx]

Bitcoin value is si volatile because of the fact that it is decentralized and no one is there to check over it.
Also influential buyers can change or alter its value and pricing.

Value of bitcoin is all about supply and demand. The making of bitcoin is solely depended on miners. Thus there is a limited inflow of bitcoins. Some influential buyers may buy a really huge amount of bitcoin and can hold it for long which will create sharp shortage in the availability i.e the supply of bitcoins and hence the price will rise.

Also its a digital cryptorruncy and not many people are known to it. It almost behaves like a stock holding wjich pretty much explains the volatility of its price and value.

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[jeanpadel14]

Bitcoin value become volatile because News about security breaches make investors react.Bitcoin can also become volatile when the Bitcoin community exposes security vulnerabilities in an effort to produce massive open source responses in the form of security fixes.

[dogeeeeeeee2]

Because the Bitcoin's value is depending on the trust of investors. If people withdraw their money from the cryptocurrencies market , the volume will be down and the price will be down too.

[Cryptophorus Columbus]

Of course, there are a lot of different causes, but the main is the relatively small group of big investors - the whales - that still have the power to move the market.

[Baton55]

As far as I can judge the value of bitcoin is tied to the inherent laws of supply and demand, according to crypto exchange Coinbase.
Whenever traders rally to purchase tokens, the price is bound to go up. The opposite is true when traders decide to sell off their tokens.
Many of the price swings that appear to occur on a daily basis can also be accounted for by the relatively small number of bitcoin in circulation.
I think that even small changes to the supply can have a potentially big impact on prices.

[cheann20]

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

For me, i think It's because it's in the market. Base on my understanding bitcoin price is starting to rise when the demand of bitcoin is high. Vice versa if the price is starting to fall. When buying a bitcoin you should always  consider the value. As you can see now bitcoin price is huge so its not recommended to invest now unless if bitcoin will pump again ..

[seandiumx20]

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

It is because of the demand and supply laws. If bitcoin has increasing demand, it's value will also increase, thus, it is not a perfect time to buy bitcoin. If bitcoin has decreasing demand, it's value will decrease and this is the perfect time to buy bitcoin. Also, bitcoin is decentralized, and it's value depends only in the bitcoin community.

[deisik]

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

It is because of the demand and supply laws. If bitcoin has increasing demand, it's value will also increase, thus, it is not a perfect time to buy bitcoin. If bitcoin has decreasing demand, it's value will decrease and this is the perfect time to buy bitcoin. Also, bitcoin is decentralized, and it's value depends only in the bitcoin community.

We all know about the law of supply and demand

But this doesn't explain the underlying causes of Bitcoin volatility, right? Indeed, in the end it all comes down to the balance of supply and demand, but what actually makes them change so fast so much? I'd rather say it is lack of real adoption. For example, why major fiat currencies are so stable? In a nutshell, it is because you can buy so many things with them, and the amount of speculation relative to real use is quite low. In other words, if Bitcoin were mainly used in commerce as it should be, it would be rock solid too. But it is all about reckless and wild speculation, thus we have what we have, i.e. insane volatility

[fredo123]

Bitcoin value is so volatile because it matter's in demand and supply, if many people took time to invest the value also rose up, if lesser people invest then the value drops down, This is the only thing i've learned in trading.

[batang_bitcoin]

Bitcoin value is so volatile because it matter's in demand and supply, if many people took time to invest the value also rose up, if lesser people invest then the value drops down, This is the only thing i've learned in trading.

I agree, when investors are starting to come in and those new ones that are putting new volume of investment to bitcoin which will add another market cap it will lead bitcoin's price to increase. And that will be good for those holders that are just doing nothing with their bitcoins but let it hold for a long time. And the volatility is giving us a good opportunity that even we do nothing, we will earn that much.

[terzy]

I think bitcoin’s value is dependant on the intensity of demand and supply there is. Whenever traders purchase tokens, the price is bound to go up. The opposite is true when traders decide to sell off their tokens.

[shaun98]

I think it is so volatile due to the huge influx of new people into the market, and then some dump their Bitcoin once gaining enough profit, driving the prices down. Anyway, it is still a new market and may stabilise in the future.

[sunnex100]

Bitcoin remains very volatile now because there are lots of uncertainties and fear around it. Bitcoin's volatility could also be related to its unpredictability and lack of serious structure it. There are lots of negativity around the cryptocurrency and many people are still sceptical about it. 

[Trela]

Bitcoin value is so volatile because it matter's in demand and supply, if many people took time to invest the value also rose up, if lesser people invest then the value drops down, This is the only thing i've learned in trading.

I agree, when investors are starting to come in and those new ones that are putting new volume of investment to bitcoin which will add another market cap it will lead bitcoin's price to increase. And that will be good for those holders that are just doing nothing with their bitcoins but let it hold for a long time. And the volatility is giving us a good opportunity that even we do nothing, we will earn that much.

This is the time for holder earn profit, but to be honest, you should change your investment type when the market be quiet again. I think we will have a rested time soon after some final altcoins pumped in this trend. Doge, Sia, Digibyte, Factom and Maid, I think these coins can continue to increase x2 value and Bitcoin will comeback to $20,000.

[furry04]

Bitcoin is a new trend in a new era and it is very normal for it to be volatile because its roots are not very long as it is with gold which has it roots within thousand years.

[taktik]

Bitcoin is a new trend in a new era and it is very normal for it to be volatile because its roots are not very long as it is with gold which has it roots within thousand years.

and I would not compare Bitcoin with gold, because gold has its own material value and physical form, which is more valuable, unlike bitcoin. Even if we imagine some global catastrophes in the world, gold will never lose its price, and Bitcoin will simply disappear.

[KrisAlex18]

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

One of the main reason is the supply and demand it is gaining from the investors and users. We can all see that the demand in bitcoin right now has grown a lot that's why the value of bitcoin right now is very expensive. You should always expect that the value will rise no matter what happens because the influence of it is increasing over time. Bitcoin's value is expected to keep rising and I do really hope it would happen too.

[Watashi Yamashita]

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

We all have different views about this matter but for me, bitcoin's volatility is greatly influenced of the demand it is getting. The law of supply and demand can be depicted here in bitcoin. As we all can see now, the demand of bitcoin keeps on growing that's why it has become very expensive nowadays. The volatility of it was able to attract a lot of investors that's why we should always appreciate it.

[Fortnight]

I believe the following are important factors:

1) Large influence of retail investors
2) Volatility of information being assimilated into the marketplace (related to factors that drive Bitcoin pricing)
3) Widely divergent beliefs on Bitcoin’s intrinsic value

[arallmuus]

I believe the following are important factors:

1) Large influence of retail investors

There is almost none that is actually confirmed at this point

2) Volatility of information being assimilated into the marketplace (related to factors that drive Bitcoin pricing)

You probably means shilling people into dumping their coins

We all have different views about this matter but for me, bitcoin's volatility is greatly influenced of the demand it is getting.

The demand for bitcoin should actually stabilize bitcoin at this point and drive it exchange rate accross $17,000 by now . From what you are saying, it is pretty much wrong, volatility just happen to be there because people are day trading it

It is not really volatile though at this point unless you use a 5 min chart, if you use the 1 day chart to check the chart then you can see we are actually quite stable right now