Why is Bitcoin so volatile?

[CryptoFuturistic]

What are your opinions about it? I read this article recently about https://moneyinvestors.net/cryptocurrencies/why-is-bitcoin-so-volatile-4-fundamental-reasons/ do you agree with these 4 fundamental reasons?

[BillionDollarDigi]

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[Anonohmon]

What are your opinions about it? I read this article recently about https://moneyinvestors.net/cryptocurrencies/why-is-bitcoin-so-volatile-4-fundamental-reasons/ do you agree with these 4 fundamental reasons?

Know this, bitcoin is becoming less and less volatile as time goes on.
Options trading is unlimited. And there are a lot of big whales who can move the small developing market that is crypto currency.

[Detritus]

What are your opinions about it? I read this article recently about https://moneyinvestors.net/cryptocurrencies/why-is-bitcoin-so-volatile-4-fundamental-reasons/ do you agree with these 4 fundamental reasons?

At least when making a post, you should outline your points first even before going ahead to put your reference link. Not everyone has the energy to go over your link reading all that.
From the  article, the four fundamental reason were;
 1: lack of regulation
 2: magic of supply and demand
 3: a technology still in evolution
 4: world conflict

From the first point, there are other volatile regulated  crypto not only Bitcoin. To make an investment you must understand the risk and agree to it.
 Point two, the demand of Bitcoin is already high so I agree to point four, world conflict can cause entire market volatility not only Bitcoin, example was during the COVID-19 pandemic the crypto market was really bad.

[uneng]

Bitcoin is highly volatile basically because there are too many coins in very few hands. It allows market manipulation by whales in high intensity.

If those whales didn't have so many coins and those coins were splitted among more hands (more investors), bitcoin's volatility would decrease considerably.

On the practice, it means few individuals could sell their chuncks of bitcoin, but it wouldn't have a big price impact at first point, moreover it wouldn't lead to panic or mass selling by other investors like we still see nowadays.

[romero121]

Even if the market is regulated all around we'll have the similar level of volatility. Maybe I'm wrong, but this is what I believe based on the technology that backs bitcoin. The supply and demand have got its role, beyond that is the Influencers. In recent days the market is into the hands of Influencers who had the ability to move the market, just because it is speculative by development. So, based on the scenario different parameters make the market volatile.

We can't indicate specific things as the reason for market volatility, if so the decisions from governments, influencers, positive/negative things relative to the cryptocurrency, etc can also be added to the list.

[G_Besar]

What are your opinions about it? I read this article recently about https://moneyinvestors.net/cryptocurrencies/why-is-bitcoin-so-volatile-4-fundamental-reasons/ do you agree with these 4 fundamental reasons?

I personally can agree with the 4 reasons listed in the article. But these four reasons will also not last forever because they still have the potential to change again in the future when the world conflict is over and regulation for Bitcoin begins to exist. Because two of the four listed reasons can still change when all the good things are in Bitcoin.

[TimeTeller]

What are your opinions about it? I read this article recently about https://moneyinvestors.net/cryptocurrencies/why-is-bitcoin-so-volatile-4-fundamental-reasons/ do you agree with these 4 fundamental reasons?

At least when making a post, you should outline your points first even before going ahead to put your reference link. Not everyone has the energy to go over your link reading all that.
From the  article, the four fundamental reason were;
 1: lack of regulation
 2: magic of supply and demand
 3: a technology still in evolution
 4: world conflict

From the first point, there are other volatile regulated  crypto not only Bitcoin. To make an investment you must understand the risk and agree to it.
 Point two, the demand of Bitcoin is already high so I agree to point four, world conflict can cause entire market volatility not only Bitcoin, example was during the COVID-19 pandemic the crypto market was really bad.

Those are basic reasons about the volatility factor in crypto.
Up until now, crypto market is still in the speculative form of market.
Hence, many users are being attracted into this market for the purpose of possible high profits.
Also, there may be other factors influencing this market, but most of the time, it is the combination of those factors why we are seeing the price movement.

[GreatArkansas]

What are your opinions about it? I read this article recently about https://moneyinvestors.net/cryptocurrencies/why-is-bitcoin-so-volatile-4-fundamental-reasons/ do you agree with these 4 fundamental reasons?

At least when making a post, you should outline your points first even before going ahead to put your reference link. Not everyone has the energy to go over your link reading all that.
From the  article, the four fundamental reason were;
 1: lack of regulation
 2: magic of supply and demand
 3: a technology still in evolution
 4: world conflict
(.......)

Thanks for putting it here, lol.
Among the list, I am more hooked on the lack of regulation, that's why it is also volatile for example, there is some news that affects negative Bitcoin and the price will get affected in just a short period of time, because you see that Bitcoin market is 24/7, anything can happen anytime.

[BitcoinBarrel]

All markets experience volatility, Bitcoin is no different.

[cloudfir3e]

actually the more volatile the bitcoin price, the greater the risk we take if we decide to invest in bitcoin (but actually, the higher the potential profit we will get).

for bitcoin fluctuations themselves are influenced by many factors such as.
news of new regulations or actions from banks and governments.
statements from leading figures in technology and investment.
news hacking or security breach
rumors or misinformation.
and these are just some of the factors that affect the price movement of cryptocurrencies such as bitcoin because there are many other factors that influence it.

[Strongkored]

What are your opinions about it? I read this article recently about https://moneyinvestors.net/cryptocurrencies/why-is-bitcoin-so-volatile-4-fundamental-reasons/ do you agree with these 4 fundamental reasons?

At least when making a post, you should outline your points first even before going ahead to put your reference link. Not everyone has the energy to go over your link reading all that.
From the  article, the four fundamental reason were;
 1: lack of regulation
 2: magic of supply and demand
 3: a technology still in evolution
 4: world conflict

I think points number 1 and 4 are the ones that have the most impact so that bitcoin becomes very volatile, there is no regulation on prices so people who have power can make the price go up or even down with the money they have as well as world conflict because of the conditions erratic will create a lot of good and bad news that will affect so that it has a huge impact on the price of BTC and becomes very volatile, but that's what most people like because the volatility of BTC makes a lot of people profit, especially speculators

[NotATether]

Bitcoin is highly volatile basically because there are too many coins in very few hands. It allows market manipulation by whales in high intensity.

People seem to think that whales are just people. Actually they are mostly institutions with a lot of coins on the market, and these are what usually bring down or shoot up the prices. The bull rally in 2021 and subsequent crash this year were both largely due to institutional whales.

[xSkylarx]

The main reason for me why bitcoin is very volatile is its scarcity. As years pass, many countries acknowledge that cryptocurrencies especially bitcoin can help a lot in our financial system so countries that want to accumulate a huge chunk of it spreads some fuds that will cause for some holders to sell.  A single event about crypto also causes a chain effect on bitcoin that it can pump or dump quickly if a particular institution did something about it.

[hZti]

In my opinion it is because we are still all very early in the Bitcoin era. It is always at the beginning that there is a lot of volatility. If we have a larger adoption like for example a currency than we will have Bitcoin tied to physical goods and this will stabilize it.

[TheUltraElite]

If you look at the average bitcoin price volatility over any year, it remains at a modest range between 10-15%.

From my perspective, bitcoin has been made notorious for being "too volatile" - but this phrase comes from its short term movements which became popular among public because it was catchy and got attention. Same thing being applied over a long time frame of a year shows less difference.

Similar assets in the stock market or precious metals also show such volatility. If regulation were to come in place, and that too about exchanges and daily volumes then only volatility would decrease. But these talks about bitcoin "instability/volatility" it is an exaggeration if you ask me.

[kasunrandil]

bitcoin is a new asset when compaire with other major stocks and assets. just think gold, gold has a long long history and price is well established and mc is about $12.001 T. when the market cap of a stock or asset is large that assets or stock has  more liquidity .  so the price movement is slow. thats why low cap and micro cap altcoins in crypto market pumps like 1000% and dumps 99% . so bitcoin is still in the early stage acctually. it has a very tiny mc when comparing with other stokes such as gold. thats why bitcoin suddently pumps 20% and dumps 20%. volatility of bitcoin has been lowest with the time and will be further because bitcoin is getting attention from new investors and it pumps more liquidity to bitcoin.

[Ayers]

there is always some level of volatility in financial markets, just to a greater or lesser extent
how can we make a profit if there is no volatility in the market?

talking about bitcoin volatility is greater than other markets, i think it's due to regulation
there are still no specific regulations for bitcoin, so in addition to supply and demand that determine the price, there will be price manipulation forces that make the bitcoin price fluctuate sharply in the short term

[DeathAngel]

It’s such a young asset so extreme volatility is to be expected. To be honest, volatility is your friend, bitcoin is the hardest money around. When bitcoin is in a large downtrend there aren’t many other investment opportunities so attractive. Volatility in your friend, use it to your advantage.

[South Park]

there is always some level of volatility in financial markets, just to a greater or lesser extent
how can we make a profit if there is no volatility in the market?

talking about bitcoin volatility is greater than other markets, i think it's due to regulation
there are still no specific regulations for bitcoin, so in addition to supply and demand that determine the price, there will be price manipulation forces that make the bitcoin price fluctuate sharply in the short term

While there are many factors which explains the volatility of bitcoin one of the most important are its users, people come to this market expecting to encounter a great deal of volatility, and in return this predisposes them to act upon any movement which may have the potential to produce big enough profits, so in a way the volatility of bitcoin in part is caused by a self-fulfilling prophecy since people come to this market in part due to that volatility.