Why crypto market is volatile

[Greenkarki]

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.

[libert19]

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).

[Lakai01]

One word: whales.
There are people out there who own an considerable amount eg. Bitcoin. They can manipulate the market in their own favor, especially when it comes to low market volume coins.

[Amalker]

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.

Because most of altcoins can be moved up or down with a small funds, so price in one day can make a large volatile moves and such thing is attracts many of  speculators.

[Herbert2020]

altcoin market is exactly like traditional market that is why it is too volatile, the thing is that market is "penny stocks" .
on top of that, this market is 90% manipulation and 10% or less reality which means it should be pumped and dumped most of the times and that creates the huge volatility. in other words the market is serving its purpose by being extremely volatile because that is how traders make profit on the bitcoin they invest in all these shitcoins.

[fuer44]

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).

the only thing the media can do is FUD, which makes investors hesitant about investing, even attracting their investment. so if that happens, the crypto price will fall.

[Bttzed03]

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).

Yes, I agree with this. We may also add that there are less players in the cryptocurrency market with really big holdings that trade against each other unlike traditional markets.

[Mianae]

1. It lacks regulation
3. Most crypto isn't backed by anything this makes its price vulnerable to manipulations.
90% of people here or even more are interested in the rewards they get from crypto the price will always be manipulated to suit them

[bigcash2011]

I would say that recently volatility has been less but still to answer your question the reasons for volatility and instability are some malpractices in the crypto market like pump and dump groups, fake bot trading, manipulation, whale speculation, non regulated brokers and exchanges etc.

[WalkerIVIV]

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.

Because most of altcoins can be moved up or down with a small funds, so price in one day can make a large volatile moves and such thing is attracts many of  speculators.

It's not the main reason but that should be the volatility of crypto caused by there was a lot of demand to buy and sell. This will create a speculative ecosystem which can be called as volatility since each coin is not backed even by commodity and that creates pump and dump.

[muslol67]

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 first has not yet become widespread yet. As this prevalence increases and the number of people holding crypto in their hands increases, volatility will decrease. The price will be more stable and reasonable.

In addition, there are no legal regulations and smart bots trade figures are constantly moving.

[panganib999]

1. It lacks regulation
3. Most crypto isn't backed by anything this makes its price vulnerable to manipulations.
90% of people here or even more are interested in the rewards they get from crypto the price will always be manipulated to suit them

Yes it lacks regulation by a centralized group or people however each and every one holder, user and trader contributes  to its price.Cryptocurrency is not backed by anything, it depends only on demand and supply law and litetally has no intrinsic value.

[nik9990]

because it is a relatively new tool in the modern world and due to the fact that many use it for other purposes

[baghdatis1990]

       The crypto market is greatly influenced by the big investors. These are generically named cryptocurrency, whales. They want to buy at a low price a certain currency and sell it at a high price. They take advantage of the naivety of small investors who sell their coins for fear of losing their entire investment.
        For less well-known currencies, the market is fluctuating with these because they are not supported and there are no regulations to allow them to develop.

[TimeTeller]

I would say that recently volatility has been less but still to answer your question the reasons for volatility and instability are some malpractices in the crypto market like pump and dump groups, fake bot trading, manipulation, whale speculation, non regulated brokers and exchanges etc.

You summed it up - those "malpractices" in crypto market. 
The volatility is particularly very high with pump and dump coins, and sometimes you know it's coming.
Those with huge amount of supply, huge premine with no solid foundation to start with, anonymous team and getting listed fast in an exchange.
High probability that the dev will abandoned that coin after few weeks of trading.
This is just to give an example on why volatility is really common with most altcoins or tokens created.

[semes]

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.

Volatility is all over life. Of course, crypto coins are a little more intense because they are so new. After a while the market will mature and volatility will fall.

[creeps]

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.

Because it runs 24/7 and availbal in almost the country and of course the manipulations of the whales that make this market more volatile. You know we can actually take this trend as an advantage because we can trade and gain profit without waiting for more days. A volatile market is too risky, its all up to you on what moves you will do to earn money. Don’t be scare in this volatile market, for me this is just a normal trend.

[cryptogeek101]

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.

I think one of the reasons of the crypto market volatility is because the crypto market price movement is based on sentiments,since the market is new there are no accurate data for study,so most market information are not reliable

[icalical]

The main reason is because it is still extremely new. The fundamental is not yet stong. Any kind of currency relies on the economic system, including cryptocurrency, and our economic system now is based on each government regulation, and most of this government are either do not have any concern on cryptocurrency or they fear it. So, until we have economic system that supporting cryptocurrency it will still be very volatile.

[plr]

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.

There are a lot of factors one of these are whales or a group of whales that manipulate it or the hype and fuds that is going around a certain group for certain coins every coin has its own whales and it reflects on the market, so expect to see this over and over again.