Bitcoin price, am I right?

[Upgrade00]

Demand and supply is basically the main factors in the market dynamics of Bitcoin. There are many other factors which affect customers willingness to buy such factors can cause fear, panic, and drive people to dump i.e sell at a lower price than it's worth, it can also lead to FOMO and make investors come in regardless of the growing prices.

The media plays an important role in investor behavior and affects our decisions, so it's also an important price determinant.

[Oilacris]

I’m new to crypto world, still learning and there’re lots of things I couldn’t understand yet. Following is one of that,

It’s saying something like the Bitcoin price decides by the demand. As I was understood, when more people buy Bitcoins, the Bitcoin price rises and wise versa.

Before asking the next part of the question, I need to know that, is what I was understood right?

Yeah you are right it just a matter of simple Economics subject where theres a high demand then there would be a high price.
So what would be your next question?

Btw,welcome to this very speculative market and be ready to ride up a very volatile market.

[1Referee]

However, not all dump is a result of real demand, the market can be manipulated, so that's something to consider in analyzing the price.

You mean not every pump is the result of real demand?

I don't consider pumps to be manipulation at all (assuming real money is being used to drive the price up), regardless of what the purpose is. Also, most pumps or dumps that people consider to be manipulation, are the result of long/short squeezes. The lack of liquidity makes it look bad, but it's perfectly normal if you look at how thinly traded this market is.

Manipulation is more like banks saying they think Bitcoin is a fraud but then buy the dip behind the scenes, which JPMorgan has actually done.

[BitHodler]

It is actually easy to understand.
Think about any rare item in this world. E.g. Monalisa painting by DaVinci, gold from shipwrecks, Harley Davidson bicycles.

With them being rare the demand is getting higher. Same with bitcoin.
The total is supposed to be 21million but there are a lot of it that are now missing or already lost.

Understanding the market will be easier if you think like that.

I get that thinking, but I have seen enough very scarce items that don't fetch much at all given how rare they are. In the same way, there are very scarce altcoins with a total supply of under 1 million, but they aren't worth much at all.

In order for something scarce to fetch a premium there has to be a market for it, and people have to appreciate and value the scarcity and utility it brings, and that's not the case with most items or assets.

I have been buying rare gameboys for almost 10 years now, and while some of these units have less than 20 of them that were ever created, the value mostly doesn't top $3000. It some times even surprises myself how this market is.

[EdenHazard]

Basically your understanding again bitcoin price movement is right that the movement price of bitcoin just depend on supply and demand. When many people buy bitcoin at the one time then its price will be up drastically and vice verza. However, that is the first thing that you should know and yeah that is important to be known by most user especially for newcomers to invest in bitcoin.

Afterward, when you start to invest or maybe you will choose to trade in bitcoin then you have to know other aspect which can make bitcoin price moving up and moving down especially when you choose trading bitcoin as your income. There is at least two strategies you have to know and they are fundamental analyst and technical analyst. Learn more about them before you start to spend your money and you will be comfortable to face everything in the future. 

[stadus]

However, not all dump is a result of real demand, the market can be manipulated, so that's something to consider in analyzing the price.

You mean not every pump is the result of real demand?

I don't consider pumps to be manipulation at all (assuming real money is being used to drive the price up), regardless of what the purpose is. Also, most pumps or dumps that people consider to be manipulation, are the result of long/short squeezes. The lack of liquidity makes it look bad, but it's perfectly normal if you look at how thinly traded this market is.

Manipulation is more like banks saying they think Bitcoin is a fraud but then buy the dip behind the scenes, which JPMorgan has actually done.

yes, that was a pump, sorry.
Well, I respect your opinion but I still believe pump and dump can somehow be a cause of manipulation.
For example, a whales will pump the price so there will be a FOMO, and once people get FOMOd, he will sell to take profit, then it will result to a dump.
It's just about the value, if we think the price is overvalued or undervalued, there's always an opportunity to earn on the situation.

[Ahiaba]

I’m new to crypto world, still learning and there’re lots of things I couldn’t understand yet. Following is one of that,

It’s saying something like the Bitcoin price decides by the demand. As I was understood, when more people buy Bitcoins, the Bitcoin price rises and wise versa.

Before asking the next part of the question, I need to know that, is what I was understood right?

You are very right buddy as that one of the basic principles of economics the forces of demand and supply always affect the price of every commodity either to an upward direction or downward direction although, you didn't not mentioned supply side in your presentation above. Supply in this case could either be through mining and the willingness of the holders to sell at the prevailing market price.

[RealMalatesta]

OP asked the question yesterday and said before I move on to my next question I want to ask if I am right, now it has been over a day and the answer is simply "mostly" yes and he hasn't asked another question. Maybe we should wait and see what the second part of the question is in order for this one to make sense.

If you really want an answer yes its demand but there is also people who do bulk movements and that is not representing the demand for the coin.

For example, when bitcoin price is going up there could be some whale who want to take advantage of it and sell bunch of their coins in thousands and then they will drop the price of bitcoin and suddenly demand will stop and price will go down. That is not because "demand of bitcoin" stopped, its actually whale scaring people off from it while they still want to be in it.

[Bitcoinwaist]

I’m new to crypto world, still learning and there’re lots of things I couldn’t understand yet. Following is one of that,

It’s saying something like the Bitcoin price decides by the demand. As I was understood, when more people buy Bitcoins, the Bitcoin price rises and wise versa.

Before asking the next part of the question, I need to know that, is what I was understood right?

imo price goes down when people buy. traders trade against new money so no one can artificially buy the market upwards. if someone placed a buy for $1 million dollars worth of btc the price would tick up, but then the bots and traders would crash the price on purpose so the person who bought can't immediately turn around and sell for a quick profit. big buyers are also tested to see if they panic sell into a sudden plunge. Its a game of nerves. ever notice when you buy price goes down and when you sell price moves up. no easy money here.

[abeecrypto]

You are on track. Except that you forgot to mention supply. In any market (including cryptocurrency), variation of price of product (like Bitcoin) is as a result of the forces of demand and supply. The supply of Bitcoin is limited, and one can say it reduces everyday as some people do lose access to their bitcoin.
As more use cases of bitcoin comes, so will the demand for the it. While that demand is increasing, so will the value/price of Bitcoin.
Do note that sometimes, some people(they call them whales) just demands for bitcoin in huge amount just to allow Bitcoin increase in value, and then sell in no time.
We all keep learning. Next question?

[Ridwan Fauzi]

Have you read an article or another source to know about bitcoin? If you have I suggest to you for read all of them, don't just cut some parts that you think are interesting. I believe if you read and try to understand you won't choose such this question. Maybe your question will be deeper either technically or fundamentally. Bitcoin price is depend on supply and demand, hopefully you have understood the concept of them. So as you will find more about some factor who will makes bitcoin price up and bitcoin price down.

[khimer_rangers]

that is easy of course the answer is correct when more people buy, prices will rise and vice versa, you should write the next question and some people will answer.if you are still learning, read more about bitcoin if there is free time.because there are several factors that can influence the movement of the price of bitcoin like good news about bitcoin then it can encourage people to buy bitcoin.

[STT]

Bitcoin is mostly transactional and its customers arent great wealth holders in general, people do hold it because its a growth asset and cutting edge but the back bone of this BTC price is if a greater number of people are doing transactions this year then the previous years.

If more people do transactions even though they are spending BTC, it becomes a currency with a higher monetary velocity and the worth expands to match the worth found in deals done the world over, ie. I see it as useful and so justifying worth at that point.   To some extent the customers will keep some change in their wallets so holding is increasing.

Other major currencies of the world do have giant holders, central banks who store it as an asset and so BTC is not in the same league as those conventional holdings.

[buwaytress]

I would say that supply and demand works as an overall framework to understand the way price action moves longer term for sure.

But you might want to complement that understanding with how the price was first established and that was an approximate cost of electricity needed to generate a single bitcoin.

I still believe some cost plays into pric even today. Miners, at least the organised ones, still feel they have to set a floor price to at least break even.

[vintages]

Reading through people's comments, I am sure you might have understand all you need to know, OP.
Aside following the rule of supply and demand, Bitcoin price is also affected by FOMO and FUDs which has to do with investor's emotions and how they perceive it and react to it.
That been said, check out this articles to understand more; https://www.investopedia.com/articles/investing/052014/why-bitcoins-value-so-volatile.asp
https://www.investopedia.com/tech/what-determines-value-1-bitcoin/

[harizen]

I’m new to crypto world, still learning and there’re lots of things I couldn’t understand yet. Following is one of that,

It’s saying something like the Bitcoin price decides by the demand. As I was understood, when more people buy Bitcoins, the Bitcoin price rises and wise versa.

Before asking the next part of the question, I need to know that, is what I was understood right?

Basically, yes. Not just in bitcoin but for the whole market. We are talking about Economics 101 here.

Before going on long writing for a much detailed explanation, what's the next question?

I saw your other created topic after this but somehow, it's more of a new subject so I guess that's not your follow-up concern.

[samputin]

I’m new to crypto world, still learning and there’re lots of things I couldn’t understand yet. Following is one of that,

It’s saying something like the Bitcoin price decides by the demand. As I was understood, when more people buy Bitcoins, the Bitcoin price rises and wise versa.

Before asking the next part of the question, I need to know that, is what I was understood right?

Basically, yes. Not just in bitcoin but for the whole market. We are talking about Economics 101 here. . . .

Just the simple demand-supply situation, indeed. When demand goes up (but limited supply), price tends to go up. This works on every aspect of the market in general.

And I would just like to commend your attitude about learning how things go around here in crypto world. Just keep it up because you're in the right place in learning what you need to know.

[Kemarit]

We all need to understand that Bitcoin has a limit of 21 million. So supply and demand plus the inflationary nature of Bitcoin makes it a good asset and as we see in the first 10 years along, it did reach a major milestone hitting almost $20,000 is 2017.

And in the next 10 years or so it is expected that the price will continue to grow as the rate of new Bitcoin being mine are going to slow down and the demand will obviously goes up as well.

[LimLims]

I’m new to crypto world, still learning and there’re lots of things I couldn’t understand yet. Following is one of that,

It’s saying something like the Bitcoin price decides by the demand. As I was understood, when more people buy Bitcoins, the Bitcoin price rises and wise versa.

Before asking the next part of the question, I need to know that, is what I was understood right?

Yeah mate. You got it right.
Bitcoin follows the policy of supply and demand.
So if the demand is high,  supply will be less,  for which the price will definitely go up.
This thing is also termed as marketcap or trading volume.
I would suggest you to do a more research on bitcoin trading, before investing any amount in it.

[iMark]

Yes it's just easy as that the more people wants to buy bitcoins the higher the price it will get and the more people wanted to sell it the lower the price it will get. But I may say this to you that it's not always like that the market are volatile just like the price of the coins and there are times that even though there are many sellers the price still gets higher and vise versa, soon when you enter the trading industry you'll experience this.

Actually basic market knowledge is like that, but there are thousands of aspects that affect the market and demand. what makes the demand go up, what makes the supply excess there are many reasons behind it. I say that bitcoin market is not only about demand and supply, fluctuations that are sometimes unpredictable, and so on. there are still many other things you must learn dude.