Why is Bitcoin Price So Fluctuating?

[ismelda_ita]

If you are an active trader in the world of digital currency and indeed take advantage of extreme price movements Bitcoin to seek profit, Bitcoin prices are fluctuating, of course, brings its own happiness. But it's different if you use Bitcoin as cash or fiat money. If you redeem your one million Bitcoin and intend to spend it on an online site, you certainly do not want your Bitcoin value to decrease as Bitcoin prices suddenly drop. Bitcoin you have now cannot pay for the Hard Disk 1 Terra you want and eventually, you have to buy extra Bitcoin to cover up the shortcomings.

Fluctuating Bitcoin prices have become a daily complaint of Bitcoiners around the world. Actually what factors affect the rise and fall of Bitcoin prices?

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[SushGo]

It will be continue in the future as well; there are always some negative news around the bitcoins which resulted into the panic selling by the short term investors in the fear of loosing money. People should trust the bitcoins and avoid the panic selling which will help to stable the bitcoin price.

[MissionPhailed]

The active traders you mention in the OP actually have a significant influence on the value of BTC and other crypto. They contribute to sharply rising prices during so-called bull runs and subsequently cause a drop in value when they sell off their profits. This causes impressive ups and downs in the price although the trend is upwards because more people and organizations actually invest in crypto.

Events like exchanges being hacked / going offline also have an effect, although less significant in recent years. FUD (negative comments) from prominent persons have negigible effect.

[squatz1]

The rise and fall is ultimately going to be effected by the the traders of Bitcoin, now these people do take a lot of thing into account when making these decisions to buy, sell, hold, leverage on certain positions, and so on  and so forth. Some of the many thing that these people put into account is the current minds of the miners, on what they want to do with bitcoin, what the developers want to do with Bitcoin, current news on regulation from governments, and so on and so forth.

Also, the Bitcoin price is flucutating due to the fact that there isn't really a wall of buyers and sellers holding the price within certain margins. People who traded Bitcoin are trying to make as much money as they can, they don't care for the actual users in the least and what they think about the currency.

[DaMut]

there are no factors behind it,because it's manipuated by peoples.
indeed,
the volatility is a problem for active user(for them who's implemented it as their payment point and the buyer who's using this).
some people owned more than 1%,that is why the price can be manipulated by them easily.
just sell some of their belonging,they can trigger 'the weak hands' and then the declining starts.
but slowly if the demand keep increasing and the price keep increasing,in the next few years later on we should see the its real 'value' and slowly stabilize itself in there.
goverment will try to regulate it and step by step we should can see how it works and how it goes.
and they can not manipulated it again as their wish because they will monitor it.
for now,
volatility is a charateristic of bitcoin,and because of it many people intrested to join and learn about it.
so,for now like or not we should accept it that Bitcoin price is fluctuative.

[dothebeats]

No one is complaining, and if there's one, they would be the ones who haven't used bitcoins in their life and are afraid by these price movements. Millions of traders all around the world are involved in these price movements, so I wouldn't be surprised myself if I bought a burger that's worth $20 in bitcoin and the next day it will be worth $25. Lastly, no one is forcing someone to buy using bitcoins, so why the need to complain if in the first place you aren't obliged to use it if you're hesitating?

[Prince8]

the market cap is too small

as the market cap grows, it will take much more to move the price

[Dobmader]

the fluctuation of bitcoin is now a day every one use bitcoin and invest their money in bitcoins.

[Fireblade]

the fluctuation of bitcoin is now a day every one use bitcoin and invest their money in bitcoins.

one of the reason can be that the users of bitcoin are increasing from time to time. more and more people are accepting bitcoin and are trying to get the opportunities to invest money in bitcoin and  get some profit. While those people who have invested money in bitcoin some time before and they can get some profit in present time, so they try to sell their bitcoin and secure their profit. some time we also experience so bad news related to bitcoin which is also responsible for the price fluctuation of bitcoin.

[HabBear]

Fluctuating Bitcoin prices have become a daily complaint of Bitcoiners around the world. Actually what factors affect the rise and fall of Bitcoin prices?

I'm not sure it's as much of a complaint as you think, but the driver of the fluctuations are supply and demand. More specifically, demand since supply growth is controlled.

Where as in the early days of bitcoin the competitors were fiat currency, the price could be more stable unless big news events happened. Now the competition is much greater, there are about 10 mainstream cryptocurrencies that people are trading in and out of. There's also more mainstream news about bitcoin and the blockchain. And adoption is slowly increasing (at least among the investment minded folks.)

The environment has changed and created more drivers of buy/sell decisions...and this directly influences demand and its fluctuations.

[john2231]

Even in real cash is increasing its value or decrease value.. The difference in bitcoin is that bitcoin is increasing value much or decrease value too low.. and its depends in the demand and supply that is why the price of bitcoin was decrease and increase..
The price of bitcoin can be increase its value in the future.. Expect and wait for the next blockchalving the supply of bitcoin can be decrease more since bitcoin users was getting more popularity expect that after block halving we will see more price increase .
Bitcoin is unpredictable because there are some people are satisfied what the price is. or they are already made a profit and they are waiting again for the price drop to buy bitcoin again its a basic method to make profit..
There is no stable price of bitcoin and compare the price from past years ago bitcoin today is really high compare before so if you not invest your money for  bitcoin you are losing  opportunity to make any profit in the future.

[bitcoindusts]

Bitcoin market is driven by speculation.  This is the reason why Bitcoin price is so fluctuating.  It has no central government to control and manipulate its price.  Supply and demand is the one governing the price.  If there is more people willing to buy the coin then it will go up and if there is people wanted to sell their coin then it goes down in price.

[dimastegar]

There are several factors. The most obvious is the volume of demand both selling and buying. Then, good news / bad about Bitcoin that will make the price fluctuate.

[HabBear]

Hopefully I don't come across as an ass here, but misinformation is dangerous. This quote below is 100% incorrect.

the market cap is too small

as the market cap grows, it will take much more to move the price

Market capitalization (market cap) is not a driver of price fluctuations. Price is a driver of market capitalization. Market capitalization is simply the size of the value of the currency (or stock, etc.)

Market Cap = the number of shares (or coins) outstanding x the price per share (or coin)

Any thoughts that market cap size influences price volatility is really a hunch (just a hunch) that investor behavior is influenced by the price of the stock/currency. If that hunch is correct it's not the market cap that's driving behavior but the price per stock/coin.

[Bram 666]

Because it is out of government control and only depend on supply and Demad low so that prices change fast of any good or bad news

[jjacob]

the market cap is too small

as the market cap grows, it will take much more to move the price

That is not the only reason. Its market capitalization is more than $70 Bn. There are a lot of companies who aren't valued at those levels. Still Bitcoin is much more volatile.

[HabBear]

the market cap is too small

as the market cap grows, it will take much more to move the price

That is not the only reason. Its market capitalization is more than $70 Bn. There are a lot of companies who aren't valued at those levels. Still Bitcoin is much more volatile.

Market cap doesn't even drive price. Market cap is a consequence of price. Market cap is not a reason why the price fluctuates.

[Zorbak]

There are many factors can fluctuate the price, news, more users adoption, whales but when market will become more mature it will be less volatil.

[player514]

The way I look at this is as if it's a stock price. When you take a look at a stock, say Paypal (which is worth 66.05 USD at the moment of me writing this), you notice that there are fluctuations that range from around +-1$. When you scale the stock price up, like Berkshire Hathaway Class A, you see the stock price being much higher (in the 100,000s), and the fluctuations as +-600 dollars. These fluctuations I believe come from the buy/sell orders that are available on the markets.

[HeRetiK]

the market cap is too small

as the market cap grows, it will take much more to move the price

That is not the only reason. Its market capitalization is more than $70 Bn. There are a lot of companies who aren't valued at those levels. Still Bitcoin is much more volatile.

Market cap doesn't even drive price. Market cap is a consequence of price. Market cap is not a reason why the price fluctuates.

I don't think Prince8 argued that market cap is driving the price. I think his point is that the larger the market, the more money it takes to move (or manipulate) the price in a meaningful way. Buying / Selling USD 1 million worth of BTC now has a lesser impact on the market than it would have 2 years ago.