Why crypto market is volatile

[jagaban]

The entire cryptocurrency market cap is too low my friend. We are at a young phase where the market can be easily manipulated by whales who hold large sums of coins. If more money comes into crypto, the volatility will reduce.

[BitcoinHodler]

the main reason is manipulation. and the fact that everyone loves the manipulation because it is the only way they can make huge profits. if nobody pumped and dumped shitcoins then you could never imagine making 200% profit in only one day

the other reason is that  the market is small and that makes the manipulation easier but also it makes any sell or buy too big for the market to handle and because of it price shoots in one direction or the other.

[tabas]

It is volatile due of being prone to manipulations. There's no way for the gov't to regulate its transaction, supply and demand and that's how the price of each crypto is too volatile. Like bitcoin, nobody controls it.

[ven7net]

I believe that the cryptocurrency market is not stable, since the cryptocurrency is a new asset that is just in its infancy and is very easily manipulated. Based on this, it cannot be said that this is bad, on the contrary, right now from strong price fluctuations there is an excellent opportunity to earn or buy a promising cryptocurrency. If the market becomes stable, then you will not be able to buy cheap and sell expensive, as the price will be constantly on the same level.

[danherbias07]

It is actually slower now unlike before.
Changes are just a few dollars and most likely there is not much room for profit.

The low amount of tokens could be the reason behind it.
Also, it is way cheaper than buying USD in exchange for other currency.

Example is bitcoin wirh just 21 million. Not enough for the amount of human being in the world and also some of it is already missing.

[newdevices]

indeed crypto market is basically very volatile, price changes occur very quickly, this is because it is influenced by supply and demand in the market, every day there are many coins traded on the market, when the demand for coins decreases so that the price of coins will drop, in other words if many investors sell coins so that the increased supply of coins will result in a decrease in prices

[marks1976]

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.

Supply and demand have created volatility for crypto, you wanna see crypto becomes stable crypto and then it should be backed by fiat money which has a stable valuation. It's not about manipulation but that's the nature of this market. remember that dude.

[olabiyijummy02]

Volatile nature of the cryptocurrency market is partly caused by the low entry barrier needed for anyone to invest into cryptocurrency.
Unlike the traditional markets where, Accredited investors trade assets the crypto market is accessible to everybody and with millions of people all over the world price manipulation is easier, and a lot of market movement can be influenced through the media

[trash321]

It seems to me that this can be called a necessity that has developed on the market today, because it is thanks to this volatility that we today understand that we can make some money, because today it is normal.

[bangjoe]

we can say that crypto is an asset or investment, this is like a stock in the business world so the price becomes very volatile especially because crypto is traded while the size of the volume greatly affects the price and as you know that the volume changes so the price changes, another, another reason is because the market is very sensitive to issues, so it makes the crypto market more volatile

[vv181]

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.

It is indeed one of the reasons cryptocurrency market volatile its because the underlying technologies are still brand new. Actually, we are still at an early age. However, I don't get the point why would cryptocurrencies needs rely on an economic system based on governments. Surely Bitcoin capable to eliminate any centralized entities without any interruptions.


Another significant reason why cryptocurrency markets volatiles is lack of adoption, I believe it the adoption already widespread, and the user already has knowledge and well-understand and aware of the potential of cryptocurrencies, the volatility will slowly decrease.

[babarian]

why prices on the market can change very quickly, volatiles that are very fast and erratic due to the many good and bad things that affect demand and offerings on the market so that prices change very quickly.

[chriseasan]

This is the main feature and the main difference of the crypto market. The volatility can be great on the raising market and very unpleasant on the falling market. The market is still very young  and unstable.

[Zidan Bst]

Because crypto market can be manipulated by some news like good news or bad news.
Always sell on news and buy on rumor.

[evanescence]

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.

Traditional market - I guess you mean stock exchanges? Company prices rarely go x10 up overnight, this is to be expected, crypto is not even that widely used in commerce, especially after bitcoin blocks got full. Pricing is entirely speculative, it's all whale manipulations and market reactions to news.

[0t3p0t]

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.

Cryptocurrency market is volatile because it is a community driven assets that is easily afected by emotion, news, FUD and manipulation. Volatility is cryptocurrency's nature and that is where we make gains and losses. For me volatility is what makes the market alive. Without volatility cryptocurrency market will become stable and I think that is not that good for traders as it may gives slow and small return.

[Ryananda]

Although the market is similar, there is a difference between the crypto market and the traditional market, because if the traditional market price is always monitored, not all goods must be monitored by the authorities, and very different from the crypto market which can only be seen from the number of buyers at the price they want, even though basically there is a fixed price.

[iqlimasyadiqa]

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 digital currency market is very volatile due to the absence of regulations that regulate the circulation and use of digital currencies. usually increases and decreases occur depending on the market situation that affects the demand factor. Some large investors can even influence changes in the price of a coin. so as long as there is no regulation, the price of the digital currency will continue to experience price fluctuations.

[Nanagyasi]

I believe the manipulation on crypto is just too much and that causes the volatility. Some individuals who owes huge amount of btc and other cryptocurrency do manipulate the market to suit their desire. Likewise, some media manipulations such as spreading negative news can just upset the market and cause a sudden fall or rise in value.

[ifightformerkel]

The market is very volatile because it is very young and not regulated properly. Because of this, the market is constantly suffering from various manipulations through news and groups of people under the control of which is a huge amount of coins.