Why crypto market is volatile

[Loedong]

every second there are many who make transactions on the market so this causes prices to fluctuate. this is common in the crypto market, so don't be surprised when you see the market increase like 2017 or when the market is like now at a low price.

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[ballerin and giroud]

Cryptocurrency market is highly volatile because of the low capitalization if to compare with traditional markets, so any news can have a big influence on prices.

I guess it will be same to the stuff which regulated by goverment, the price stuff depend on supply and demand which is will give affect to the price stuff. In my country the price cron slowly rise because many people who want to buy crown for  made a meal as a traditional celebration, whilst corn supply is limited due to several reasons and this is make the price cron rise soared. This thing will be same to the market cryptocurrency.

[yvesp110]

Probably due to low marketcap of whole crypto industry, it's easy to manipulate such low volume market when you have money (there is also media manipulation).

There are so many variables that could be fit into a regression equation and you would come to know that they are still not enough to explain the volatility impact of the cryptocurrency. So it is quite obvious that holders who have large volumes of coins could be one among so many other factors. The fact that the markets of Bitcoin are liquid is another reason and the list continues.

[doycku]

Cryptocurrency market is highly volatile because of the low capitalization if to compare with traditional markets, so any news can have a big influence on prices.

I guess it will be same to the stuff which regulated by goverment, the price stuff depend on supply and demand which is will give affect to the price stuff. In my country the price cron slowly rise because many people who want to buy crown for  made a meal as a traditional celebration, whilst corn supply is limited due to several reasons and this is make the price cron rise soared. This thing will be same to the market cryptocurrency.

I think that the cryptocurrency business situation is a bit different, because today the offer on the market is quite a lot, or even at a low price, but no one is in a hurry to buy. Of course, in order to increase the interest of cryptocurrency, you need to carry out a certain information campaign, but for this there must be at least some prerequisites.

[RockDJ]

Hey, I have some moderate experience over this crypto world. Why the market is extensively volatile. Alike traditional market does crypto too impacted of many major changes.

From my experience, the volatilty is present due to lack of trust in the industry. People are new to the cryptocurency technology and often wondered its applications and relevance. This uncertainty coupled with ico fraud causes the dumps which may easily result from FUD caused by media channels. People need to stop losing money seeing real life applications of cryptocurrency to trust the system more

[globalpain]

Hey, I have some moderate experience over this crypto world. Why the market is extensively volatile. Alike traditional market does crypto too impacted of many major changes.

the crypto market is very volatile because price movements are determined by demand and supply that occur in the market, when many investors choose to sell their coins, it increases the supply of coins on the market and causes a decrease in prices, and vice versa
basically crypto is indeed volatile, and this cannot be changed because no one can manage or manipulate price movements in crypto

[minersday]

The volatile nature of the cryptocurrency market is due to the fact that cryptocurrency operates on a decentralized system and its price is most determined by those who have a lot of a particular crypto coin. If i have about 1000 Ethereum and i decide to sell it at $50, this will force others to reduce their price in order to sell their coin because a drastic decrease in the price of ethereum.

[Twinkledoe]

The volatile nature of the cryptocurrency market is due to the fact that cryptocurrency operates on a decentralized system and its price is most determined by those who have a lot of a particular crypto coin. If i have about 1000 Ethereum and i decide to sell it at $50, this will force others to reduce their price in order to sell their coin because a drastic decrease in the price of ethereum.

Perfect explanation of how volatility works in crypto. And since we can't control someone else's decision when it comes to trading, we are just here waiting what the market will cater to us and react on what is happening. Either we participate or let the situation pass and wait for a better deal.

[bitgolden]

Traditional market is not regulated or decentralized while crypto market is totally decentralized and out of regulations. Besides, sometimes manipulation can also affect the price.

Aside the market being manipulated which I don’t dispute the fact that some coins in the market are really being manipulated but sometimes, the volatility also depends on the normal investors, the number of investors that comes in an out and their purpose is what I feel makes the market volatile, for now, 60% of the investors are on a short term investment, which they pull out their fund from the market at every slight opportunity they see without holding it for a long term while the market also keep gaining new investors every day, as long as the system is new and investors are coming in and out of the market on a daily basis, the market will always remain volatile.

[sonicwave]

The volatile nature of the cryptocurrency market is due to the fact that cryptocurrency operates on a decentralized system and its price is most determined by those who have a lot of a particular crypto coin. If i have about 1000 Ethereum and i decide to sell it at $50, this will force others to reduce their price in order to sell their coin because a drastic decrease in the price of ethereum.

People managed to collect a lot of top coins before the market was finally formed, they now have large reserves of coins on their hands and therefore influence the price or even the entire market

[bartusv]

The main reason is that there are many coins and the market is still relatively small one and it can be easily manipulated by the so called whales. It is also very sensitive on the news and on the FUD.

[e@symode]

Because this is a normal phenomenon, especially if we accept that cryptocurrency is now one of the most volatile values ​​in the world. I think everyone will agree with me and that’s what we can earn today.

[dimonarka]

The course of the little-known cryptocurrency can fluctuate without any reasons at all. Sometimes for its fall or growth it is enough to fall or rise in the rate of Bitcoin or another major currency. Compared to traditional assets, the cryptocurrency volatility is really high.

[nxnqauff]

Its filled with lots of scammers, no regulations, lots of freebies.. etc.. These things should be eradicated from the crypto market and then market will be stable or atleast it will be like conventional stock markets.

[yingfeng]

The cryptocurrency market is still very young at the moment. Almost all projects are at the stage of alpha and beta testing. Cryptocurrencies are still not very popular.

[daarul50]

Compared to the stock and commodity markets, the crypto market is still very young. However, the popularity of cryptocurrency can defeat these two markets, perhaps this is due to the fantastic pumping of prices at the end of 2017.

[Okity21]

The volatility of the cryptocurrency market is determined by the economic processes occurring on it, as well as the play of the big people of this market.
I think if you get enough experience in the market, you can successfully get money even in difficult volatility conditions.

[cryptowolfsu]

Most of the coins are not backed and it is a speculative market, this is why it is so volatile. crypto is a 
 a relatively small market and that fact makes it very sensitive to all  the news and the FUD.

[LUCKMCFLY]

The majority of the market is volatile due to the simple fact that it obeys the Law of Supply and Demand, it is necessary to emphasize that Bitcoin and the altcoins do not have liquidity or support, since it is decentralized in nature.

Also in the altcoins they depend on Bitcoin, so if an altcoin has a small bullfight, but Bitcoin falls, the altcoin drops immediately. The volatility is also due to the movements carried out by the so-called whales or Market Makers, which can move the market with a large capital of money.

[shendy]

Cryptocurrency is indeed volatile and this is what makes it different from the others, here is the specialty, when going up, of course all enjoy the benefits gained, when we go down we can't do anything, all of them have the most important cryptocurrency in the future more and more will need it