Why is Bitcoin's daily price fluctuations getting smaller and smaller?

[nightfury]

Bitcoin price fluctuation is becoming little each day as the crisis continues because most of the people who want to invest in bitcoin are also waiting for the final dip so they can buy it at a lower price. For some who already have experienced and already invested, they just keep on hodling because they believe that bitcoin will rise again.

[ahmad21]

The most prominent reason for the smaller fluctuations in Bitcoin’s price is that the demand of it among the investors has decreased and that there are not much people buying Bitcoin. Second, the remaining investors who still have faith in Bitcoin are holding it which has established its prize. Under the situation of current price, it is advisable to hold on to the investments till the price gets back to normal. The thing is market is now highly spread which means that new entrants entering the market are pretty less now so fluctuations too are pretty less.

[Tapyaks72]

the price will go up along with a quick process of it.how are the people whoever bitcoin all bitcoin users as a trading too .so when its in the right time the price is sometimes up a bit percent and sometimes down along with a bit percent.

Bitcoin price fluctuation is simply the effect of supply and demand of the investors if the fluctuations is become smaller, that  means that the seller and buyers is in equilibrium that is why it is stabilize.

[Ilegendph]

Why is Bitcoin's daily price fluctuations getting smaller and smaller? How do you view the current price of Bitcoin and how we should handle the transaction in the later period?

Its because the price is getting larger. An example to explain it further is that when you will buy an expensive gift, if you have a little money, the price would affect you so much but if you are that rich the price doesn't matter at all its because though the gift is the same price for both poor and rich all that matter is that the percentage in their total money will cause them that gift.

[Vektrum]

Why is Bitcoin's daily price fluctuations getting smaller and smaller? How do you view the current price of Bitcoin and how we should handle the transaction in the later period?

The volatility of bitcoin decreases when its price falls. Then the number of transactions on exchanges is falling and bitcoin is relatively stabilizing in price. However, if the price of bitcoin again rises, then its volatility will again grow. Thus, bitcoin stability is most likely an exception to the general rule of high bitcoin volatility if bitcoin will feel good and grow in value.

[Et Hereum]

Bitcoin fluctuates its price daily whether higher or smaller its because it reflects to supply and demand everyday which the higher investors open to invest. This time as the bitcoin getting smaller and smaller its due to the transaction which increases the selling people than to buying.

[Hazaki]

This decreased volatility and inflation is a phenomenon that always follows a dip in prices since there won't be a lot of transactions on the market and not much of trading activity will be taking place , which will engender the price to be rather stable than when there's a lot of money moving in exchanges .
And i'm sure that we'll only be encountering volatility again if bitcoin's price goes higher over the few next months as this down trend proceeds to disappear giving place to a bull run to take over .
Such lack of fluctuations in price will be encouraging people to invest more in bitcoin especially those who got more familiar with it's patterns and have gathered enough experience to know what to do on each market condition and state and reduces the uncertainty that take over decisions whenever the market is going mad .

[Vatimins]

Why is Bitcoin's daily price fluctuations getting smaller and smaller? How do you view the current price of Bitcoin and how we should handle the transaction in the later period?

     In my opinion, this is because of the bearish season still have the investors in a hangover. It is pretty possible that most of the investors that have panic sold and lost a huge amount of capital in the process of dropping in the early months of this year are still afraid to jump back in again. I think that this will change when they see good movement which is already starting as of now.

[Elai101]

Bitcoin fluctuates its price daily whether higher or smaller its because it reflects to supply and demand everyday which the higher investors open to invest. This time as the bitcoin getting smaller and smaller its due to the transaction which increases the selling people than to buying.

Yes, market fluctuation or the volatility of bitcoin is because of the changes of market's supply and demand but maybe it doesn't really mean that if more selling then price fluctuation become smaller. My understanding for this is that there are many people hold there bitcoin and only few who buy, so the result is smaller market changes of supply and demand.

[Chusnul]

Well for this we have to know some basic economics. This is basically due to supply and demand or in other words The wide fluctuations of the Bitcoin price is mainly due to the effects of mass speculations by the investors. Now as we know the price is just rocketing up, increasing at the 5%to 10% every day. The more the price is going up the more amount investors are putting into this cryptocurrency (increasing the demand) which is again resulting to price rise making it a cumulative process. As long as the prevailing bias of the market participants towards this currency is positive its price will grow indefinitely and after some bad news or any other unfortunate the prevailing bias would reverse its direction, dropping its price rapidly. So think rationally before investing in it.

[TastyChillySauce00]

I'd think that the reason of this is because the market doesn't know which way the price should be going, the entire market is split between being bullish and bearish. So I'd think this is the time of uncertainty, so the market could go up, down, sideways, in circles, but who knows on this!

TLDR: Time of uncertainty.

Exactly what I thought, people don't really know whether it's time to buy or time to sell, they are all in an uncertainty that causing them to be doubtful, even I believe that so many people right now at the moment watching the price movement
just like they are watching movie, so serious just to know where we will heading to. But, I think that when the market stabilize like this, we are at the stage of healthy market where the price is not just affected merely by hype.

[lastnumber]

Bitcoin's day-to-day fluctuations do not mean that Bitcoins are less volatile on the Cryptocurrency market. Compared to the end of 2017, the value of Bitcoin is now only half. Bitcoin grows slowly, keeping prices unstable, then falling prices. Everything keeps repeating. Bitcoin is underperforming, so with the growth and devaluation of the range around $ 7,000 to $ 8,000 we feel Bitcoin has a small fluctuation.

[kive2k]

Apparently there are no reasons for drastic changes in the price of bitcoin, no announcements or news, perhaps the popularity has fallen.

[Lorence.xD]

Decreasing volatility is not only a "perception", like some have guessed, but real: The Bitvol Index, which measures price volatility, is going down since new year approximately.

Apart from the reasonings in this thread (I agree to some, while not to others, see below) this phenomenon seems to be a common fact in all advanced bear markets Bitcoin has seen until today. In 2014, for example, after 2-3 months approximately the price swings became much smoother and gave the illusion of "predictability" and "stability" (I remember it was around the $400 price level). You can see it in Bitvol's graph (click on "All").

I agree with Hydrogen that one of the reasons may be the behavior of newbie traders which tend to be vulnerable to FOMO while panicking when they smell a crash. With time, they quit or learn that not every movement means "da moon" or "death".

2. A large amount of Bitcoin hoarders are not paying with bitcoins when the price is lower. They get less value for their money, when the price is low. So when there are not a lot of transactions on the exchanges, the price will be more stable.

Hoarders, or more properly hodlers, don't impact the price volatility at all...because the don't transact.

Low price = less transactions & trading = less volatility.  

I've corrected this for you. Fewer transactions = less volatility and therefore a narrow price range over a period of time.

I don't believe in a negative correlation between the number of transactions and volatility. Normally, it should be the other way around: when there are many transactions, then price should be more stable, because this means "thicker" order books and so the volume needed to change the price is bigger.

The fluctuation of Bitcoin  price posted on the market treed, is the result on the volume of trading on crypto currency market, the movement on investment at any given time the lesser the possible effect on the said market price of Bitcoin, other indicator are maybe, the issue posted vs. Bitcoin the are the never ending issue on Banned, Scammer, and the issue s on Regulation, once this issues posted in the social media or in the market preview, it would triggered the movement on the price value whether in the fraction of point or even higher point, it all depend on the level on reaction on the market.











However, it's difficult to generalize here - I think the type of transaction is the key. Direct buy/sells of goods and services without fiat involvement should stabilize the price, as well as simple limit orders at exchanges. Transactions that boost volatility, in my opinion, are 1) market orders and 2) advanced order types like stoṕ-loss orders (because they tend to lead to extreme price swings when they're triggered). These two kinds of transactions are more likely in "FOMO" and "panic" phases, and we're currently not in this kind of phase, so there is less activity of these.

A stronger reason for low price volatility is the lack of news or developments, good or bad during the recent weeks/months. There hasn't been much news about Bitcoin. This is probably a good thing.

Mmh, I'm not so sure. I consider the launch of the Lightning beta a very important positive announcement. But where you're right is that this news didn't "make it" into the mainstream media, so outside our filter bubble nobody noticed it.

[batang_bitcoin]

Apparently there are no reasons for drastic changes in the price of bitcoin, no announcements or news, perhaps the popularity has fallen.

You just missed it so you better check on the recent news about what's the cause of this fluctuation.

This can be one of it. The Real Reason Behind Bitcoin’s Price Crash Revealed -Fri May 25

[LuffyD.Monkey]

Apparently there are no reasons for drastic changes in the price of bitcoin, no announcements or news, perhaps the popularity has fallen.

No, this sent the actual reason as far as I know. This is just a back step of a lion when he becomes ready to make a prey. The thing is, bitcoins are down since January of this year and tile now the prices haven’t been succeeded to get out of that dip. I think this drop is just an indication to everyone that is, we are just getting higher in a bit while you all must be read to make huge profits.

[r32godzilla]

It may be due to normal people getting aware of bitcoin's true potential irrespective of FUDs spread in the market which has decreased the rate of panic sellers around the world.Gradually,its becoming a stable currency but still volatility could not be completely avoided.

But this decrease in volatility would decrease interest among traders to trade in bitcoins.

[HatDen]

There are two possible reasons for this :

1. A certain percentage of Bitcoin investors consist of speculators. They are causing most of the volatility in the market, so when there is a dip in the price, these speculators sell quickly to protect their profits. Once they exit the price becomes less volatile.

2. A large amount of Bitcoin hoarders are not paying with bitcoins when the price is lower. They get less value for their money, when the price is low. So when there are not a lot of transactions on the exchanges, the price will be more stable.

Low price = less transactions & trading = less volatility. 

Thank you man, it's the idea that I'm thinking about lately, all the institutionals say that cryptomarket is very volatile, but it all depends on the players that are playing in the market, and the more speculators, the less volatility. Correct me, if not right.

[rainezerr]

Why is Bitcoin's daily price fluctuations getting smaller and smaller? How do you view the current price of Bitcoin and how we should handle the transaction in the later period?

The answer is very obvious, there are more investors who are planning to sell their coins because they are scared maybe due to a fake news or just they cannot handle the pressure when the market price is decreasing.

[Maestro75]

By saying that Bitcoin's daily price fluctuations is getting smaller and smaller you mean that the price does not move sharply up or down enough to make people get scared. This is a good sign for those who are holding. But that does not mean bitcoin price is at a standby and does not move that enough. $200-$400 movement each day is enough volatility for some people.