What affects the price of bitcoin and other cryptocurrencies

[davis196]

This subject has been discussed before.Can you add anything new to the topic?
The limited supply and unstable demand are what creates a big price volatility.
Most of the crypto traders and newbies are always between FOMO and FUD,so they are always super excited and hyped(FOMO) or super panicking due to the FUD or the price corrections.
The crypto whales are always winning in both cases,because they know when to buy low and sell high.

[1714631964]

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[hatshepsut93]

You could continue this list on and on, but don't forget that all these factors also have magnitude, and it can vary from insignificant to big, and it also can be different each time. It can even go against what you would logically expect, like when Bitcoin crashed with the stock market, despite it being theoretically a hedge, or how shitcoins grow despite no developments and inferior technology. Ethereum Classic got 51% attacked many times, but it still didn't fall as much as you would expect.

[bearexin]

Mostly that part of demand and supply plays a huge role in the cryptocurrency price, or should I say that’s like the main thing that controls the market price and then the other things are like factors that triggers it to happen: when there are speculations it influences investors to take different actions in the market which brings us down to demand and supply, the investors are either going to demanding for it or their selling their coins, and the action they are taking compared to the supply will determine the supply.

Moreover, issues with government regulations leads to the same thing, also with the community size and ecosystem development.

[bitpotter]

Affecting the price of bitcoin and other cryptocurrency is all because of demand and supply together with the decision of every people using it to buy and sell. I don't think if there is other factor that make it's price go up and down except people exchange buying and selling.Those other factor you mention is just affecting the peoples decision or the demand.

Most of them just got carried away by the current trend. Perhaps the defi project is very beneficial because of its market volatility so explosive that could get more money, but in another way it can spend your money quickly. Now it remains how to manage it all, when you enter and when you have to leave immediately, it will determine your destiny.

[hassancisse]

The prices of cryptocurrencies have been going up and down since it was created and there are so many factors that can make the price fluctuate that way and i will be identifying such factors below:

1. Supply and demand: The higher the demand the higher the price. If theres an high demand for bitcoin and other cryptocurrencies you will definitely see and increase in them. We all know that the total supply of bitcoin is just 21,000,000. This makes bitcoin very scarce and it will definitely see an increase in price following the rule of the lower the supply the higher the price

2. Market speculation: Speculation provides the market with liquidity and the aim of this speculators is to make profit. So many people see cryptocurrency as a speculative tool because its easy to create fear in people about a coin and so many people will FOMO in.

3. Regulatory and Government issues: The government of every country are always finding a way to regulate all cryptocurrencies which is not possible. The fact that they dont like the decentralized nature of it. Cryptocurrency is definitely not accepted in every country in countries where it is accepted and probably the decide to regulate and ban later. This can affect the price of cryptocurrencies badly.

4. Community size: The scale of the group is what significantly impacts the Bitcoin price or every other crypto. A wide group is signalling that there is strong interest for this coin. Many businesses and individuals use it, and that broad adoption encourages more growth.

5. Ecosystem development: Many cryptos have their issues even the head of it all Bitcoin. Presently scalability is the main challenge of bitcoin, This means the network is unable to deal with the rising amount of transfers that users submit. Many cryptos have their issues too and these issues can cause a decrease in the price of them

I think this is a wrong way to interpret. The reason for market movement has always been demand and supply and nothing else. All these factors that you have mentioned except demand supply are nothing but just factors that affect the demand and supply in some way. So Economically speaking the equilibrium ends up at the point where demand and supply gets exhausted.
Speaking of it financially it's really pretty hard to get an intrinsic value of bitcoin so finding a rough value using finance is almost impossible. Finance generally counts the PV of future cash flows for intrinsic values.

I think the major reason behind the volatily of crypto currencies are the demand of the users. For example of this month has the lowest demand of the users then the next will be affected. The higher the demand the higher that the crypto currency's value will rise. That's why the value of crypto are not consistent because sometimes it goes down and sometimes it goes down.

That is why included supply and demand as the first reason because the basic rule still applies to everything and it definitely still applies to cryptocurrency also no one can say otherwise. If we get more people using crypto in their daily life we will definitely see a rise in all cryptos.

[Inkdatar]

We have read some in detailed like this before. A lot of factors contributes as what affects the price of bitcoin and other cryptocurrencies. The demand and supply is the common facts once the demand increase the price does. Also, you have to note that bitcoin is an unpredictable asset where price may up and down. Once there’s Fud it creates panic that results in the market price down.

[noorammak]

There is no institutional body behind bitcoin, so the value of bitcoin is speculative and community-based. So it is very volatile under any news. The crypto market is very special, most altcoins have a company or organization behind them, but they are all subject to the fluctuations in the value of bitcoin.

[lepbagong]

There is no institutional body behind bitcoin, so the value of bitcoin is speculative and community-based. So it is very volatile under any news. The crypto market is very special, most altcoins have a company or organization behind them, but they are all subject to the fluctuations in the value of bitcoin.

bitcoin is very unique and full of mystery but many admire and seek and make investment that is very attractive, bitcoin greatly affects all movements of altcoins in circulation and this very dependence indicates that bitcoin deserves to be taken into consideration by many people and more attention than others because bitcoin is a profitable investment.

[SomeJasonGuy]

According to me, it simply boils down to demand and supply. Macro-economic factors are another big price influencer. Government policies also play a huge role. In India, the price began to tank compared to the rest of the world when bitcoin exchanges were "banned" in 2018.

[junnar1968]

Based on my research. Bitcoin’s price isn’t set by anyone in particular. It’s set by the market. this makes pricing the currency more complex because prices will vary by exchange. As an example, you could look up the price of Bitcoin on the internet, and you might find two different prices.

[carter34]

1. Supply and demand: The higher the demand the higher the price. If theres an high demand for bitcoin and other cryptocurrencies you will definitely see and increase in them. We all know that the total supply of bitcoin is just 21,000,000. This makes bitcoin very scarce and it will definitely see an increase in price following the rule of the lower the supply the higher the price

I look at this as major reason price can go high or low. A big demand will get panic in the market and that will cause a shake in decision of what to do. Demand and supply is important to where price will shift to.

[XCANA]

In the real sense the inability of cryptocurrency holders to hold their portfolios has major effect on the general cryptocurrency market. If we the holders can keep our portfolios intact without falling for the rumors around the cryptocurrency world, we will have a boost in it market price. Whenever the market went down in respect to bitcoin price is always seen as some sort of dumping from big holders of such coin or token. Let's learn to hold our portfolios and we'll be happy with the move in terms of cryptocurrency price.

[0nline]

Im pretty sure at this point it is only whales.

[pixie85]

Im pretty sure at this point it is only whales.

So in other words you think that economic situation, shutdown caused by the pandemic, the stock market crash, bitcoin bans in certain countries, exchange hacks, halvings, all that is irrelevant. All that matters is when a whale will decide to make a move.

[Expecto]

Demand is a very important factor on affecting Bitcoin price I think. When people start to buy Bitcoin, demand will increase and the price will be affected nicely. Recently, there are many people who started to sell their Bitcoin. So, there is not enough demand and the price has been declined sharply.

[Anna138]

Mostly that part of demand and supply plays a huge role in the cryptocurrency price, or should I say that’s like the main thing that controls the market price and then the other things are like factors that triggers it to happen: when there are speculations it influences investors to take different actions in the market which brings us down to demand and supply, the investors are either going to demanding for it or their selling their coins, and the action they are taking compared to the supply will determine the supply.

Moreover, issues with government regulations leads to the same thing, also with the community size and ecosystem development.

The problem of the government and its regulation of financial flows in the country and abroad is, in my opinion, a key factor. If we want to ensure that bitcoin is as familiar a means of payment for labor as a plastic card is now, then we need to first push through reforms in the financial sphere of our States.

[qwertyup23]

To sum this up,

What affects the prices of cryptocurrencies is what affects the people that builds the crypto market. Every people take things differently, one will pull his bitcoin out coz he see a 5% mark down to the price while the other will put more money because of the lower price. One investor will pull his investment out of the coin coz he sees a 20% mar down while the other put some more taking advantage of the lower price. One will withdraw his funds out of a project coz it got involve in a scam while the other will not touch his funds until further news have been reported. I guess what crypto is all about is the people's behavior.

As what the OP mentioned, the btc price is affected by those factors. We can't pinpoint only one as the contributor because it is the product of several factors in the market. Even when there is FUD or FOMO, they are just part of the game but they are not exactly the only contributing factor that affect the btc price. So in short, btc price is dictated by several factors and that we can't consider only one factor at a given time.

In addition to what the author of the thread post, I think it's worth mentioning that the price of bitcoin also depends upon the willingness of the public to purchase it given its current price. Although this may generally fall on 'supply and demand', the price mainly depends upon the willingness of the public to purchase it like gold.

Im pretty sure at this point it is only whales.

So in other words you think that economic situation, shutdown caused by the pandemic, the stock market crash, bitcoin bans in certain countries, exchange hacks, halvings, all that is irrelevant. All that matters is when a whale will decide to make a move.

Whales play a significant factor in the changes of its price in the market but you must also consider the external factors as well. Even if whales have the majority number of bitcoins in the market, external control which is beyond their reach also play a huge role on the shift of bitcoin's price.

[FlightyPouch]

Demand is a very important factor on affecting Bitcoin price I think. When people start to buy Bitcoin, demand will increase and the price will be affected nicely. Recently, there are many people who started to sell their Bitcoin. So, there is not enough demand and the price has been declined sharply.

I don't think that is a sharp decline, to be honest. We just slid back down to $10K which is just $1K down from the past weeks where we are staying. Another thing is that we can't say that there is not enough demand since if that is true, we should be looking at a lower price, not just $10K. It is still strong the fact that we are sitting at this price right now.

[BitcoinPanther]

Whales play a significant factor in the changes of its price in the market but you must also consider the external factors as well. Even if whales have the majority number of bitcoins in the market, external control which is beyond their reach also play a huge role on the shift of bitcoin's price.

Influencers just like whales also played a significant factor on the volatility of Bitcoin.  Most of these influencer either bring hype or bring FUD to Bitcoin market which often times affect the mood swing of the Bitcoin market.

[Harlot]

4. Community size: The scale of the group is what significantly impacts the Bitcoin price or every other crypto. A wide group is signalling that there is strong interest for this coin. Many businesses and individuals use it, and that broad adoption encourages more growth.

5. Ecosystem development: Many cryptos have their issues even the head of it all Bitcoin. Presently scalability is the main challenge of bitcoin, This means the network is unable to deal with the rising amount of transfers that users submit. Many cryptos have their issues too and these issues can cause a decrease in the price of them

I think you can remove this two since "Community Size" is something already part of the "demand" part of demand and supply. We can't really separate them since you are just basically telling another definition for demand. For the ecosystem and development I think this just all go into market speculation, even if there is something new with their development we can't really translate this into an automatic price increase for a cryptocurrency. We have seen it before where project devs even if they worked their ass off on a new development it doesn't translate into any price increase for their projects.