What are the major factors that affect the bitcoin price?

[dakmokong]

Bitcoin is the first most popular digital crypto-currency whose price is influenced by a wide range of factors. Ideally, the bitcoin price is normally expressed as the exchange rate of the bitcoin in relation to other currencies. With an upsurge in the adoption and usage of this digital currency, the demand for bitcoins has significantly increased in the recent past.

Factors that affect the price of Bitcoin include:
1) Supply & Demand - At a basic level, the price movements of any cryptocurrency will be driven by its availability. The scarcer a digital coin is, the higher its price levels. In contrast, a virtual currency with an abundant supply will likely experience lower price levels.

2)Mining Difficulty - In the case of proof-of-work blockchains such as Bitcoin, the mining difficulty of a coin can also have a direct relationship with its price. A higher mining difficulty means that it is harder to mine an additional unit of a coin. This can have an impact on a coin’s perceived value, and subsequently its price, as increasing a coin’s supply will require more computing power to be used in the mining process.

3)Utility - A key factor that will affect a cryptocurrency’s price movement is its perceived utility. A virtual currency that possess no practical use will likely be viewed as having no value, which may be reflected with lower market price levels. For example, Ether’s price movements can be attributed to its perceived practical utility, that being a user’s ability to build and launch their own decentralized applications on the Ethereum platform

4)Market News - Market News can also affect a coin’s price movements. Positive or negative news reporting can be a heavy influencer of general market sentiment regarding a particular coin. Media reporting about a network hack for example is likely to drive prices down, whereas, coverage about a coin’s increasing adoption can result in positive market sentiment that drives a coin’s market price upward.

Hope this helps a little! Happy bitcoin-ing!!! 

[zhanyiguai261315]

Now policy impact has very important effect to the price of the currency, in September 2017, the Chinese government's policy led to a bit of a drop in prices, in January 2018, South Korea and the policy of the Chinese government and lead to decline in the currency price!

[dakmokong]

Now policy impact has very important effect to the price of the currency, in September 2017, the Chinese government's policy led to a bit of a drop in prices, in January 2018, South Korea and the policy of the Chinese government and lead to decline in the currency price!

Agree on that!! Since bitcoin is gaining attraction from every government of each countries.

[yepaiyique2]

The development of the block chain is hot, the international market is good news, and technical improvement is the focus of our attention, because this is the real driving factor of the price increase. Good technology is for the benefit of mankind, so I think technology is the main reason for the rise of bitcoin!

[amaydel]

I think whales can cause bitcoin's price to rise and fall since they do have enormous holdings of bitcoin. So when they sell it, a dip will occur or it will rise if they buy it in volume. Another factor is the people's demand over bitcoin since it is a basic principle of economics about demand and supply.

[HeRetiK]

[...]

Factors that affect the price of Bitcoin include:
1) Supply & Demand - At a basic level, the price movements of any cryptocurrency will be driven by its availability. The scarcer a digital coin is, the higher its price levels. In contrast, a virtual currency with an abundant supply will likely experience lower price levels.

[...]

You omitted looking at the Demand side of things, which by itself can be broken up in 2 factors

i) Community -- The larger the community behind a cryptocurrency, the more people involved, the higher the demand. Bitcoin's community has vastly grown over the years.

ii) Availability -- The ease of buying a cryptocurrency. While exchanges are currently overwhelmed with verifying new customers, it has never been so easy to buy cryptocurrencies.


On a higher level I would also add Trustworthiness: The more people trust in a cryptocurrency, the less prone they are to panic selling, making for a stabler market.

[Nana_Marini]

I think thay many people who invest in bitcoin is one of factor that affect the bitcoin price. Any new business also affect the bitcoin price, if there are many ICO, it will affect the price of bitcoin is high 

[SunJAB]

The development of the block chain is hot, the international market is good news, and technical improvement is the focus of our attention, because this is the real driving factor of the price increase. Good technology is for the benefit of mankind, so I think technology is the main reason for the rise of bitcoin!

Bitcoin is rebounding, the recent downturn has been largely driven by bad news from the Chinese market that has repeatedly pushed the market into confusing investor sentiment to sell bitcoin and other coin. Once they have achieved their goal, bitcoin is gradually regaining its momentum, the field is gradually becoming more adaptable to such fluctuations.

[btcluisdiki]

I think thay many people who invest in bitcoin is one of factor that affect the bitcoin price. Any new business also affect the bitcoin price, if there are many ICO, it will affect the price of bitcoin is high 

As per article I had read regarding the factors affecting the bitcoin price are as follows:

a)Government Regulation - when a certain government releases official statement about regulation of digital currencies, the price of bitcoin is normally affected. Anytime there are restrictions on the use of bitcoin, their price may change drastically.

b)Bitcoin demand and supply - This means high demand and low supply oftens leads to an increase in the price and we need to understand that bitcoins have a controlled supply. Because of limited supply, price may continue to rise in due time.

[Tavarez]

recently two appeared as main factors: China and Korea but people are intelligent nowadays. There is a growing tendency of Chinese crypto entities moving offshore to continue the crypto path. Even if Crypto is severely banned in China there plenty of remedies to avoid the ban.

[dakmokong]

I think whales can cause bitcoin's price to rise and fall since they do have enormous holdings of bitcoin. So when they sell it, a dip will occur or it will rise if they buy it in volume. Another factor is the people's demand over bitcoin since it is a basic principle of economics about demand and supply.

Correct. Basically, due to the popularity of the bitcoin, many people are so eager to learn how this thing works. Resulting to the shortening of supply while demand increases.

 

[Potatohead]

I think one of the major factors that affects bitcoin price would be the volatility of the other cryptocurrency. I have learned in economics that when the price of a certain thing rices the other competitors' prices is bound to decrease due to the pull of marginal revenue. So, this factor is enough for it's price to go high or fall.

[GeoDudeScho]

I think whales can cause bitcoin's price to rise and fall since they do have enormous holdings of bitcoin. So when they sell it, a dip will occur or it will rise if they buy it in volume. Another factor is the people's demand over bitcoin since it is a basic principle of economics about demand and supply.

This. What was the statistic, 4% of all addresses hold 97% of BTC? The common mans belief on the value of BTC has very little impact, everything you see is the whales.

[lampukoe lumo]

Factors affecting bitcoin prices !! Possibly affecting bitcoin prices is due to the large number of enthusiasts and the limited total supple, and the number of people investing in bitcoin also includes things that affect bitcoin price increases, and the number of new businesses that can influence the rise in bitcoin prices, the more ICO is launched then will also rise bitcoin prices.

[Scor1937]

Actually all the reasons you mentioned are a major factor behind why the price fluctuates too much. But perhaps the 4th point that you mentioned about Market news might be much effective because cureemtly the news and FUD from china and south korea government about closing exchanges has caused a high price drop and it is a major harm to the society as every individual is selling his bitcoins in panic sell at a loss and it also is causing a high price drop. I would like to suggest everyone to just hold your bitcoins now and they will pump back. Also you can purchase more bitcoins at a good dip if you feel so.

[hachiman13]

Culture can also affect the price. Like what we are experiencing now, lunar new year is around the corner. What that brings us are a lot of (asian) people cashing out their cryptocurrency holdings to celebrate the event thus the market are negatively affected.

[Maingtoled1958]

Now, their are several issues going with bitcoins so the price is going much low. Actually due to the new from south korea government about banning the exchanges is causing a lot of people for panic sell and the demand is probably decreasing which is then loosing the market price. Also the mining difficulty for now is high and also the transactions are been denied. Market news is also not in favour of bitcoins. At such situation the price going down is usuall and i hope it will soon pump back.

[shezu007]

The major affect of BTC is demand and supply.
Demand is directly proportional to price as demand is increasing then price will also increasing while as demand is decreasing then price will also start decreasing.
While supply is inversely proportional to price as supply in market increasing then price will start decreasing and as supply short then price start increasing.

[boyshx]

Price of any currency is determined by the flow of demand and supply of that currency. If supply is more than demand then prices remains low and vice versa. Bitcoin supply is restricted at the time of its introduction, so its growing demand is pushing its price always up. Being a decentralised currency no regulating authority is present to control the volatility.  Addition to those external factors like ban /regulations or any favourable news about bitcoin currency makes its investors panic or encourage them to buy or sell bitcoins.

[3la9l_kolbaCa]

Bitcoin is the first most popular digital crypto-currency whose price is influenced by a wide range of factors. Ideally, the bitcoin price is normally expressed as the exchange rate of the bitcoin in relation to other currencies. With an upsurge in the adoption and usage of this digital currency, the demand for bitcoins has significantly increased in the recent past.

Factors that affect the price of Bitcoin include:
1) Supply & Demand - At a basic level, the price movements of any cryptocurrency will be driven by its availability. The scarcer a digital coin is, the higher its price levels. In contrast, a virtual currency with an abundant supply will likely experience lower price levels.

2)Mining Difficulty - In the case of proof-of-work blockchains such as Bitcoin, the mining difficulty of a coin can also have a direct relationship with its price. A higher mining difficulty means that it is harder to mine an additional unit of a coin. This can have an impact on a coin’s perceived value, and subsequently its price, as increasing a coin’s supply will require more computing power to be used in the mining process.

3)Utility - A key factor that will affect a cryptocurrency’s price movement is its perceived utility. A virtual currency that possess no practical use will likely be viewed as having no value, which may be reflected with lower market price levels. For example, Ether’s price movements can be attributed to its perceived practical utility, that being a user’s ability to build and launch their own decentralized applications on the Ethereum platform

4)Market News - Market News can also affect a coin’s price movements. Positive or negative news reporting can be a heavy influencer of general market sentiment regarding a particular coin. Media reporting about a network hack for example is likely to drive prices down, whereas, coverage about a coin’s increasing adoption can result in positive market sentiment that drives a coin’s market price upward.

Hope this helps a little! Happy bitcoin-ing!!! 

you had a very good point here though there are some of the statements here that are just a little bit far from what is happening right now.... people had the bitcoins and when the news came that korea and china are banning the cryptocurrency many people reacted so much that's why price go down.