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Author Topic: Cause of volatility of bitcoin ?  (Read 243 times)
altcoinanalyst1
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May 20, 2018, 11:52:04 AM
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Hello guys, In 2017, Bitcoin’s price soared from 1,000 usd to just under 20,000 usd before dropping down to around 13,000 usd at the end of the year. Since then, its value has risen and dropped sporadically from day to day. now its around 8,300 usd. So what may cause this drastic change of bitcoin value ?
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May 20, 2018, 11:55:57 AM
 #2

Hello guys, In 2017, Bitcoin’s price soared from 1,000 usd to just under 20,000 usd before dropping down to around 13,000 usd at the end of the year. Since then, its value has risen and dropped sporadically from day to day. now its around 8,300 usd. So what may cause this drastic change of bitcoin value ?
Big bitcoat volatility is due to the fact that the market of cryptocurrency is still too young. Any minor news can trigger a price change. As the market develops, the volatility of the cryptocurrency will decrease. The more people will use bitcoin, the less there will be price fluctuations.
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May 20, 2018, 11:56:23 AM
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It is true that bitcoin prices are currently declining after bitcoin prices peak up to $ 20,000, and I think this is because of the price bubbles that will occur in annual prices.
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May 20, 2018, 12:27:45 PM
 #4

     In my knowledge and understanding the volatility is a nature of bitcoin since it was created. It is also the reason why bitcoin become more popular and valuable. Because of bitcoin volatility many investors are investing to gain more profit from bitcoin. Volatility is the essential ingredient of bitcoin. But there are also factors that cause of volatility of bitcoin like panic selling,digital currencies small market size ,low liquidity and immature regulatory environment,it can help bitcoin price fluctuations.

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May 20, 2018, 12:42:52 PM
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there are more causes why bitcoin value always volatile,  which the most reason is whales that always bathing on the market and always dump when the growth rate Increase and touch the new value.  And the rest is fuds that always intimidate holders to create panic sell and banning reason such countries ,exchange or site like facebook and google. which is had a huge affects in the market ,
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May 20, 2018, 12:47:47 PM
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Here's what I understand why bitcoin is so volatile. News, when there is bad news people panic and sell their holdings and if there is good news people buy bitcoin to ride the wave and if they feel it will start to fall again they sold what they bought and take their profits. As for what happen last year from November to December there was a lot of good news pooping up in the internet that time and bitcoin was going mainstream and there was a lot of new people who were riding the bitcoin train that time and after it went to $20k level "I think some whales started to sell their holdings" and when people see that the price was decreasing they panic and cause the crash. Just my thought.
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May 20, 2018, 01:02:24 PM
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The causes of volatility in bitcoin can be traced to many factors which include the government policies, the laws of supply and demand and individual impact.
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May 20, 2018, 01:12:33 PM
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Hello guys, In 2017, Bitcoin’s price soared from 1,000 usd to just under 20,000 usd before dropping down to around 13,000 usd at the end of the year. Since then, its value has risen and dropped sporadically from day to day. now its around 8,300 usd. So what may cause this drastic change of bitcoin value ?

Bitcoin fluctuates as investors know that 2017 bitcoin has a strong growth beyond everyone's imagination, but also the time it changed dramatically to the time of flight is not increasing and down strongly. The reason for this is that other digital coin also thrive along with the development of some other currencies, which are close to the bad news of bitcoin as the shaky mayor.

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laryillary
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May 20, 2018, 01:20:29 PM
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The volatility of quotations of bitcoins in the coming years will increase, rather than decrease, since at the present stage of the development of the currency, the fluctuation of the exchange rate increases its value for speculative investors
cryptohopes
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May 20, 2018, 05:45:16 PM
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Market become unstable for ban news from different sources. FUD is also another reason. This market is will stable soon the more countries will concentrate in it.
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May 20, 2018, 05:51:00 PM
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Analysts are sure that the volatility and sharp jumps of the BTC exchange rate will continue. The situation can change only if the new asset class does not become a more stable and reliable way of storing funds. If this does not happen, bitcoin in the eyes of financial organizations and the public will remain a suspicious payment service.

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May 20, 2018, 05:56:03 PM
 #12

So what may cause this drastic change of bitcoin value ?

Just people buying and selling at the exchanges causes the fluctations. Everytime a positive news comes in, new entrants flock to buy in. Intra-day traders are involved in a big way as they play with large amounts.
The major drops are caused by new about regulations, exchange hacks etc. Bitcoin continues to move sideways afterwards. Once enough time has passed and everybody is sure that nothing is wrong, they start FOMOing again and it rises back, inevitably, every time.

This is the bitcoin boom and gloom cycle. Just hodl tight and keep trying to earn whatever Satoshi you can.
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May 20, 2018, 05:57:47 PM
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Every economic news, government decision of any country, hacker attack or mass sale only further stimulate bitcoin volatility. While the system goes on all possible tricks to avoid inflation and volatility, gradually introducing into circulation 21 million units of currency, the demand on the BTC undermines all these plans.

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May 20, 2018, 06:01:45 PM
 #14

Observing the graph of the variability of the bitcoin rate, you can see that the currency could be compared with the stability of gold or the US dollar only for a moment. Many times, the price of BTC jumped by several tens of percent in just one day. The problem of market volatility bitcoin is not solved to this day. And it remains only to bet on whether the e-currency will have time to achieve stability before the economic bubble bursts.
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May 20, 2018, 06:11:03 PM
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Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors.  Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX).  Volatility in Bitcoin does not yet have a generally accepted index since cryptocurrency as an asset class is still in its nascent stages, but we do know that Bitcoin is capable of volatility in the form of 10x changes in price versus the U.S. dollar, in a relatively short period of time.
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May 20, 2018, 06:13:58 PM
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Ask and bid  Grin
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May 20, 2018, 06:15:22 PM
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One of the factors that make bitcoin volatile as it's decentralised system. Central banks manipulate the value of their fiat by changing interest rates.

You can't do this in bitcoin so it's value is very close to the market value. Since there is regulatory commission controling bitcoin, no one steps in when prices crash.

It may be a good or a bad thing, but it is the reason why people flock to bitcoin. To keep the banks from messing with their hard earned money.
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May 20, 2018, 06:22:51 PM
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The best thing to do is embrace the volatility, I know it sounds counter intuitive, but the volatility of crypt I currencies is a trader's dream. Buy at the bottom and sell at the peak to get nice gains and volatility makes those peaks and troughs both more often and more extreme. I know for a fact that in the future, if and when the volatility dies down,  I will miss it
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May 20, 2018, 06:24:03 PM
 #19

Hello guys, In 2017, Bitcoin’s price soared from 1,000 usd to just under 20,000 usd before dropping down to around 13,000 usd at the end of the year. Since then, its value has risen and dropped sporadically from day to day. now its around 8,300 usd. So what may cause this drastic change of bitcoin value ?
Big bitcoat volatility is due to the fact that the market of cryptocurrency is still too young. Any minor news can trigger a price change. As the market develops, the volatility of the cryptocurrency will decrease. The more people will use bitcoin, the less there will be price fluctuations.
I agree, with the market be young and with a lot of FUD going around, it's without doubt that it's the major cause of the volatility going on in the Bitcoin market, But i believe that the more people buy and hold on to their bitcoins, the less it becomes volatile and the more stable the currency becomes.

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May 20, 2018, 06:28:57 PM
Last edit: May 21, 2018, 08:46:45 AM by mindrust
 #20

The markets are still too young. There are many many early adopters with thousands of coins and they can suddenly get out or get in to the ecosystem just because they can do it. These early adopters are probably around 1000 or 2000 people according to https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

In time some of them will die, some of them will lose their private keys, some of them will dump their stash and bitcoin will keep growing. In the end, when the bitcoin marketcap gets big enough, it will be a lot less volatile like what gold it is now. It will probably look like what gold/usd when btc's evolution is complete.



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