Who sets the price for crypto currency?

[Porfirii]

TY mk4, I misunderstood the OP's intention as I was thinking about the speculation side too (who makes the price go up and down... as he mentioned the central bank governor of a country for fiat, dependent on politics and economic interests) instead of only the way the prices are calculated in CMC or similar.

Of course, the way these prices are calculated is the same for all cryptos afaik too.

[1715080945]

1715080945

[Ecg007]

Prices are being instigated on the buy and sell offer in the coin market cap which is a phenomenal that is not static but dynamic and by so doing the market cap has its say to the day to day prices in the crypto currency.

[Mpamaegbu]

While I agree that market forces of demand and supply finally sets the price of any asset, I want to also point out that price of any asset is first determined/set by asset team or owner. Look at what happens during ICOs, IDOs, IGOs or even IEOs where prices are known and fixed even before the assets hit the market. So, it's not entirely true that the market sets the price from the onset.

[Luffygroove]

IMHO, before jumping to cryptocurrency, you need to know the basic thing about it. The most basic principle about cryptocurrency is it's decentralized. There is no single institution that controls the cryptocurrency because it's basically based on the p2p principle. So, the price will be built by supply and demand among people who trade it. However, we can't be blind that's actually there are some parties who handle a big amount of it, which is called the whales. Not seldom, they're the ones who control the price movement.

[pooya87]

The most basic principle about cryptocurrency is it's decentralized.

Not true. In fact majority of cryptocurrencies (aka altcoins) are centralized to some degree, some even fully centralized for example the stable coins such as Tether are completely centralized. There are others like ethereum that are mostly centralized and some that have some traces of centralization.
This has been one of the main reasons why many altcoins have been referred to as "shitcoins".

[GeorgeJohn]

still one thing I don't understand: if for fiat it's the central bank governor for a country that decides the local daily currency price against the other fiat currencies, who decides the price for crypto? Bitcoin Core software? Exchange platform software's AI?

From my perception bitcoin price is regulates through market total number of supply and demand, because nobody control the regulation of bitcoin like fiat currency as you stated and it's the reason while fiat is called centralized currency to it have governor who is in control of it's regulations and determination of it speculated values whereas bitcoin is decentralized and it regulate itself through market functional structure.

[SteveHankse]

Nobody controls bitcoin. Banks are not even in the picture. The price of bitcoin and other cryptocurrencies is the outcome of supply and demand. The change in buyers and sellers for the coin results in its price movements. The price varies a little from one exchange to another. The supply and demand is also affected by external factors such as news and regulations on crypto exchanges by the government.

[izumikoushiro]

hi,
still one thing I don't understand: if for fiat it's the central bank governor for a country that decides the local daily currency price against the other fiat currencies, who decides the price for crypto? Bitcoin Core software? Exchange platform software's AI?

thanks

Based on the information I got, the price of Crypto Assets depends on the balance of supply and demand. This is the law of the market. When a Crypto Asset is popular and in high demand then its price will go up. Vice versa, if supply is high while demand is low, prices will fall and the amount or quantity of the crypto asset itself. The volume of crypto assets such as Bitcoin and Etherium is still very small and the distribution is uneven so that the price value will be greatly influenced by the actions of the holders of these crypto-assets in making sales or purchases.

[TheNineClub]

also short answer: a lot of factors. The aforementioned Supply and Demand, but also governmental entanglement, even with crypto as being decentralized does not mean your users do not fall under government regulations. Speculation and predictions can also be a big factor as to what makes it go up and down. For instance, a third wave of BTC rising can indicate and therefore be speculated that it will rise again for the forth time and just by that an increase happens. Call it momentum in a way.