Why Is The Price Of Bitcoin So Volatile?

[drabe]

Data from Coinmarketcap.com shows a sharp decline in Bitcoin prices from $18,737.60 December 18th of last year to $6,252.44 on February 6th of this year. However, Bitcoin’s value had already increased to $9,959.84 as of February 16th at 21:00. Rather than a steady increase in Bitcoin’s price up to mid-December of last year, this reflects volatility of this leading cryptocurrency.


Read more : https://www.currencytimes.co.in/why-is-the-price-of-bitcoin-so-volatile/

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[Fire316]

Data from Coinmarketcap.com shows a sharp decline in Bitcoin prices from $18,737.60 December 18th of last year to $6,252.44 on February 6th of this year. However, Bitcoin’s value had already increased to $9,959.84 as of February 16th at 21:00. Rather than a steady increase in Bitcoin’s price up to mid-December of last year, this reflects volatility of this leading cryptocurrency.


Read more : https://www.currencytimes.co.in/why-is-the-price-of-bitcoin-so-volatile/

            The value of bitcoin is tied to the inherent laws of supply and demand.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. The volatility of bitcoin price is the most difficult thing to manipulate by someone.

[Silentsweeper]

Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors.
News events that scare Bitcoin users include geopolitical events and statements by governments that Bitcoin is likely to be regulated.
Bitcoin has properties that make it similar to gold. 
It is governed by a design decision by the developers of the core technology to limit its production to a fixed amount.
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.

[orarider]

Bitcoin price is very volatile because its market is very wide. There are a lot of people investing in bitcoin. Bitcoins are heavily impacted by economic powers like the United States and China. So bitcoin prices always change.

[TheGreatUnknown]

The price fluctuations in bitcoin can be driven by many factors, some about the supply and demands of bitcoin, that means that a single person could decide to release huge amounts of Bitcoin into the market at any moment, completely upending its value. the Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index.

[Virtual miner]

The volatility of Bitcoin is one of the major characteristic trait of this Crypto currency. There are many reasons to its volatility. It follows the simple rules of economics of demand and supply in the Crypto market. When the demand is up, obviously price is bound to reach up and vice versa.

Well there are also many other market conditions that have a bearing on the price variations of the Bitcoin. Like one amongst us mentioned of the media factor. This can be an important factor in determining the price of Crypto currency. As of a recent example media has been FUDing about the government regulation of the Crypto market, and this has really affected the market.

[Shreek]

yes, this will be a historical record in the crypto world that bitcoins fall drastically uncontrolled. bitcoin has a very high volatility, so its value is difficult to predict.

I think the reason for bitcoin has decreased and unstable volatility is due to increased sales at the end of the year, exceeding the previous year.

besides that, I see before the end of 2018, bitcon is rising fast and I think it is not normal.

then finally, the bitcoin falls abnormally as well and uncontrolled.

[zwiggel]

Because bitcoin is dependent on the economies of big countries like America, Japan and Japan. Mining also strongly influenced the bitcoin value. The number of people investing in big bitcoins makes the bitcoin always changing.

[WUUEX79]

Basically bitcoins are designed to be volatile meaning that bitcoin can fluctuate and have a high competitiveness in the crypto market.

[Xenrise]

Volatility is one of bitcoins nature. So when you are to invest in bitcoin, it is super volatile that it will make the price go up so HIGH, and go down so LOW. And bitcoin is dependent on the demands of people. If people are buying these, then the price will go up. And bitcoin is dependent on the news, if there are some news, fuds about btc, price will go down dramatically.

[ALI AKBAR]

Bitcoin prices are very unstable because the Bitcoin market is very broad. Bitcoin demand is increasing in the world, the number of investors is increasing. People are benefiting by investing in bitcoin. The developed countries of the world are benefiting economically from Bitcoin.

[laryillary]

Bitcoin grows on the wave of the general colossal demand, which increases daily, perhaps, in a geometric progression. Fundamental news is added to optimism, such as the launch of exchange bit futures, which opens institutional capital to a legal path to cryptoric and crypto-liquidity.

[Epimetheus]

Bitcoin prices are very unstable because the Bitcoin market is very broad. Bitcoin demand is increasing in the world, the number of investors is increasing. People are benefiting by investing in bitcoin. The developed countries of the world are benefiting economically from Bitcoin.

The price of Bitcoin depends upon the forces of demand and supply.If the demand is more the prices will rise and if the supply is more then its price will fall.Bitcoin also depends on the usage from country to country.Another factor is investment.Investing in Bitcoin which is also factor for its volatility.Trading is also factor on which Bitcoins price depends.If more and more people are buying Bitcoin and holding them then its price will rise or if they are selling more than the prices will fall.

[yamete kudasai]

Data from Coinmarketcap.com shows a sharp decline in Bitcoin prices from $18,737.60 December 18th of last year to $6,252.44 on February 6th of this year. However, Bitcoin’s value had already increased to $9,959.84 as of February 16th at 21:00. Rather than a steady increase in Bitcoin’s price up to mid-December of last year, this reflects volatility of this leading cryptocurrency.


Read more : https://www.currencytimes.co.in/why-is-the-price-of-bitcoin-so-volatile/

That's because cryptocurrencies are dependent with the demand in the market especially in terms of the market value. The market price is proportinal with the demand and since the demand changes a lot, same thing happens with the price resulting for market volatility. Just hold and invest and also, don't mind the backdrops. Just be patient and Hold.

[Gaff]

Bitcoin prices are very unstable because the Bitcoin market is very broad. Bitcoin demand is increasing in the world, the number of investors is increasing. People are benefiting by investing in bitcoin. The developed countries of the world are benefiting economically from Bitcoin.

The price of Bitcoin depends upon the forces of demand and supply.If the demand is more the prices will rise and if the supply is more then its price will fall.Bitcoin also depends on the usage from country to country.Another factor is investment.Investing in Bitcoin which is also factor for its volatility.Trading is also factor on which Bitcoins price depends.If more and more people are buying Bitcoin and holding them then its price will rise or if they are selling more than the prices will fall.

Bitcoin's value keeps on changing drastically. Some of the factors that might be considered for  its volatily would be its young market, still developing, illiquidity, and the supply and demand aspects. On the other hand, it has become  popular already in  the general public and with this it attracts more investors and no wonder it will become more stable in the nearer future.

[Lintel]

Price if bitcoin is so volatile and it is the nature of cryptocurrency. The fluctuations in price of bitcoin is caused by many factors like FUD's who are scaring bitcoin users or investors. and also bitcoin unlike fiat that it is beig controlled by the government , bitcoin is not being controlled by the government , if investors think that the price is getting low they can easily trade their btc . So it makes more problem in bitcoin as people are selling the price is getting low.

[adzino]

Price if bitcoin is so volatile and it is the nature of cryptocurrency. The fluctuations in price of bitcoin is caused by many factors like FUD's who are scaring bitcoin users or investors. and also bitcoin unlike fiat that it is beig controlled by the government , bitcoin is not being controlled by the government , if investors think that the price is getting low they can easily trade their btc . So it makes more problem in bitcoin as people are selling the price is getting low.

You can not always blame FUD for the price fluctuation. In fact FUD only causes the price to go down, not fluctuate. Effects of FUD does not last long and recovers quite quickly. There are other causes of price dropping like government being more strict with crypto currencies. And don't forget about demand and supply.

[colvis]

Well for me the price of bitcoin is being violated and is not standby because of the panic and break of the market from different  country..
So I believe that really affected the price of the coin.

[Sunnyyy]

The value of the bitcoin oscillates because it is dominated by many investors around the world. Bad news or government decisions can affect the interests of many investors. They sell bitcoins that affect the value of bitcoins

[[Frederick]]

the market was affected with the number of money that are coming out and coming in the market so you can considered it as one reason why the price move so suddenly.