Why crypto market is volatile

[babicena14]

I would single out 4 main reasons for the volatility of cryptocurrencies: the lack of regulation by the state, the lack of reference to any tangible assets, the lack of real value and the human factor. But in the volatility of cryptocurrencies I see advantages, in my opinion it attracts a lot of traders and gives a chance to buy for those who missed a profitable moment.

[Georgiyk]

Yes, you are right, the biggest drawback of cryptocurrency is the volatility and volatility of the course. The fact is that a cryptocurrency depends on many factors: on the correspondence of supply and demand, on the policies of states regarding virtual money. If we take the leading cryptocurrency, it depends on the complexity of the extraction, on the technology it uses, on the dependence of money on each other.

[bison]

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.

indeed the current market conditions are still very unstable and the price movements are very volatile, but conditions like this will provide a huge advantage if you can apply daily trading methods.

[Ferris419]

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.

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).

I think that's not probably, its happen when the market condition goes to very bad and people go away from the market. When altcoin price gets drop then people get shocked and they are in tension. As an economy system, If the demand increases, the price increases, and if the demand drops, the price decreases.

[BigBrother]

The cryptocurrency market has such volatility primarily because it is decentralized. That is, any large investor or several such investors can manipulate the price. And accordingly, they are followed by other traders and it turns out that the price can either rise or fall in a fairly short period of time.

[voltesbit777]

In accordance with my understanding with this concept, because of volatility many of the traders in crypto get their profit. And the no. 1 who get benefited with was the whale investors in my perception on this matter. That's why most of the altcoins together with Bitcoin also are all volatile. In short, Volatile is the heart of crypto trading in the market.

[aji567]

I think Crypto is very volatile because everyone makes transactions including sending, withdrawing and receiving. factors like this that affect the crypto price so quickly the fluctuation of a token or coin price. the volume of people trading also affects the price of crypto.

[LUGHUL]

Because not all countries provide clear regulation of crypto, so if there is little good or bad news about crypto, it will affect the price of crypto. I am sure that if all countries recognize crypto especially bitcoin as a universal currency, crypto prices will be stable.

[Aryleeto]

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.

Well, I believe that the crypto-currency market is not like the stock market , and not all funds are from some people, and in the crypto-currency very crowded hold the crypto-currency and because of this the market is voluntary !

[trade2winnn]

There are many facts on this,one of them is that there is a group of Manipulators who,by pre-collusion,do such things on the market,having a very strong administrative and financial resource, and the market becomes unstable!There is still the fact that it is a very young and new market are usually also many impostors among,plus there is no more plainly regulators,and many factors,they make the market what it is now

[Buzhou]

Because the lack of physical value in a product for the first time is under discussion anywhere.
In fact, we are at the beginning of a powerful experience of what is physical and not physical in relation to values.
We are learning that there are values beyond what we feel, smell or touch.
Cryptocurrencies and anything technically related are all about that.
So speculation is present precisely because there are many divergences of thoughts, interests and intentions.

[graffix]

It is the same as the traditional markets. but different is crypto market can manipulate easily than the other markets. I think it's because of the low volumes. some considerable amount of money can make a big effect in the crypto market. I already saw there are some crypto signal groups are pump the coin by purchase a big amount once and sell them after the pump. because of these low volumes, a good marketing campaign also can pump coin easily.

[CLywaTeLb]

[cut out]
Cryptocurrencies and anything technically related are all about that.
So speculation is present precisely because there are many divergences of thoughts, interests and intentions.

If there was a uniform distribution of thoughts, interests and intentions, the market would not go anywhere. It is precisely because sometimes the factors for one direction coincide, the market moves in this direction.

I think this market is so volatile that liquidity is low.

[justspare]

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.

For now the crypto market will still continue to be volatile because it is new and don't have so much volume in it's total market cap, as of today, the total marker cap of the crypto market is $130 billion which is small compared to some fiat that have a market capped at billion and even trillions of dollars.

Once the marker is able to get to trillions of dollars, I know we are going to now begin to see a stable price of coins.

[adzino]

Yeah, changes might affect the crypto market. If its a positive change, we see the price starts to rise with a decent speed. If its a negative change, we see the price falling down steadily. The market is volatile because it is "decentralized". So the prices are set by the people, unlike the government restricting a centralized marketplace. Again, the prices can be manipulated by someone who owns a huge amount of coins. And people constantly cashing out for profit might be another cause for the price volatility.

[Prompyboo]

There are many facts on this,one of them is that there is a group of Manipulators who,by pre-collusion,do such things on the market,having a very strong administrative and financial resource, and the market becomes unstable!There is still the fact that it is a very young and new market are usually also many impostors among,plus there is no more plainly regulators,and many factors,they make the market what it is now

I believe that the current state of the market is due to the fact that investors do not trust our industry. and the market is not improving because there is no regulation

[nonbody]

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 market situation of cryptocurrency is similar to that of stocks. As long as someone invests in speculation, there will be a tendency to fluctuate up and down.

[microbb8]

Because this is a completely new technology that is being developed. Stability will be but it takes time.

[letyouearn]

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.

This market is new - this is the main reason. Second reason - it's not backed by anything real. Third - there are many guys who are interested in this volatility, who make money, using it.

[bendernine]

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 is appropriate for the price of each coin to change, it may be true because of that, the market can change for the better and worse, maybe the coin that changes at any time, I am also surprised why the price of the coin cannot stop the price , essentially the volume of coins can go up and down continuously whether until when.