What major factors affect bitcoin price?
darkangel11:
To understand how the price changes you have to understand how exchanges work. Only a small fraction of all coins in circulation are deposited on exchanges, and an even smaller fraction is being traded regularly, so most of those price movements are due to a small percentage of coins being traded. That is why the price can change only by a small percentage in a given time and it moves in waves.
When something happens in the world, like a country accepts BTC or there's a fork, like the one with BCC, traders react first and you get first wave. If that wave is big enough or the news significant and proven, investors will start moving money to exchanges to buy or coins to sell and start another wave. What affect the price the most is news.
Ajinomoto40:
Quote from: xrates on August 17, 2017, 08:36:55 PM
I am a total newbie to this forum and don't know very much about crypto currencies.
What are major factors affecting bitcoin (or any other crypto currency) price? Is this mostly supply and demand, do other factors (difficulty of mining, hash rate, etc) play significant role in bitcoins price?
It is the demand that affects the price of any cryptocurrency. Same as in Bitcoin wherein its market value depends on the market's demand. Bitcoin at this moment is expensive, which means it is now, in demand. And anything that is in demand will have a high value. It's a matter of supply and demand relation. The size of community will also count. Bitcoin is still the best cryptocurrency because it has a bigger and larger community compared to other cryptos, which also made its price, high.
Lpim01:
The major factor that make bitcoin fluctuation price is because of high demand in the market but limited supply. Mining can affect the supply of bitcoin because it depend on them how many bitcoin are they mine in a day in order to supply a huge number of users and investors.
Today's bitcion price attract more investor because their is a big chance for them to a big profit in return. And if still there is a lack of supply probably it will continue going up.
Black tea:
Bitcoin prices are determined in absolute terms by supply and demand. If someone buys or sells Bitcoin in a big price, then the price will move in the extreme. Bitcoin price volatility will be dampened if more and more Bitcoin users are scattered and the number of Bitcoins scattered is also higher.
Bagaji:
Currently there are positive news about bitcoin all over world which create more demand for it, and since the demand has become so high the holders becomes skeptical about whether to sell or not and if we are to sell it should be on the higher side. That is to say, the demand for Bitcoin is higher than the supply of Bitcoin and that makes it price to go up.
Navigation
[0] Message Index
[#] Next page
[*] Previous page