WHY CRYPTO IS SO MUCH VOLATILE

[Boxxl]

Just wait for the big investors are getting in Bitcoin.. I hope they do.
Watch the historical price of bitcoin and altcoins.

If you go up 2000% we can also go down quickly.

[EmmettBrownRu]

Until the market has no regulation and punishments for manipulation, the market will be very volatile. Big money earns a lot of money.

[rijaljun]

why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?

That's because people speculate so much in the market. There are actually so many whales, playing the market price. Their power caused high volatile. I think there is no solution yet. Anyway, this thing is both good and bad so let's just enjoy this.

[losiva]

why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?

It is because the price all depends on the market demand, it all depends on the investors and traders since they decide at which price do they sell or buy cryptocurrency. A cryptocurrency without demand most likely becomes valueless.

Yeah I agree with you, crypto market is all about demand and supply, and if you really understand the market demand and supply then you will know why crypto market is so volatile, when much people are willing to sell and few are willing to buy, the markets goes down vice versa, the only to control crypto market volatile is when much people are holding their coins to create a huge demand in the market, of which that is not possible.

[Muhammad Muneeb]

Because 1. lack of liquidity - Very few are actually trading a single coin and usually holders have too much of one coin. Anything less that 1,000 active traders on a single coin will see strong volatility in altcoins. In Bitcoin, which is less volatile than altcoins, around 100,000 active traders.

Second, there is no real usage/demand for the coins, all speculative. Unlike wheat, oil, rice which can never crash so bad.

but oil ,wheat prices are regulated by the governments but the crypto is decentralized , moreover it is the fact that some addresses possess the significant price of the certain coin not all of the crypto currencies according to you particular coin should dump not the whole market

[magicrypto]

Dont think so, when we start to get news like " BTC is 10-12k now" new people also join the bullrun, greed is working that way, human memory is too short)

[Sarobeat]

It seems to me that liquidity is the main feature of the crypto currency. Of course, whales seriously affect the market, one can say - control, but this is not the state. Still, the crypto currency depends on the community, which, as for me, is its positive feature. 

[BogdanGFTP]

Take a look at the past.
In 1980s Japan's stock and property markets were increasing very sharply. It was like a miracle, everyone thought that Japan's technologies are the best and its markets would never crash.
But than in 1990s there was a longest crisis that japans ever seen. Stocks values decreased for more than ten years and there was many bankruptcies.
In cryptomarket there could be very similar situation, so I do not think that the volatility of market is the main problem for investors.

[aldorexxx]

I think that it is possible thank to the crypto's dependence on the real event in the world and so on. Such influencers could make a great impact on crypto.

[Seundavid]

One of the major reason crypto is so much volatile is that most of stocks values decreased for more than ten years and there was many bankruptcies.
In crypto market there could be very similar situation, so I do not think that the volatility of market is the main problem for investors.

[modmalaney]

This is the nature of the crypto early on. fluctuations is already a reasonable risk to take place. to overcome these things certainly is difficult let alone is indeed the market it is difficult to control the erratic and unpredictable. This may be a consideration of many people before entering in the field of crypto.

[chocolah29]

why crypto is so much volatile? is there is any way to control this volatility so that investor's confidence increase in crypto. people have lost alot in the recent market crash and it will be hard for the new investors to join the crypto. your thoughts ?

It's hard to control volatility as this is what make cryptos attractive to us. If we just see the bigger picture here volatility is what actually gives us decent profit and without volatility we can't maximize the market and we're just stuck in a stable yet boring market. So will you still wish to control it? I know volatility is somehow annoying but just always think unimaginable and always be careful from what you wish for.

[romeolopez21]

Because crypto is spreading all over the world and its value is increasing only, I am sure that the potantial has not been opened yet and there will be much more interesting events.