What is the factor that affects the price of bitcoin

[yhiaali3]

In the first place is supply and demand.
Supply and demand are the biggest factor in determining the price of any commodity or currency in the market.

In the second place comes production, whether the cost of production or the quantity of production, but the quantity of production is inversely proportional to supply and demand, because an increase in production leads to a decrease in demand and a decrease in production leads to an increase in demand.

Finally, the big news, whether it is economic, such as the adoption of some countries or large companies for Bitcoin, or political, such as the Russian-Ukrainian war.

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[Ayers]

There are many factors that affect the price of a commodity and bitcoin is no different, external influences like macroeconomics to internal influences like market news, but the biggest factor that will determine the price of bitcoin is supply and demand. But currently, bitcoin price is not determined by supply and demand, sharks manipulate bitcoin price. The bitcoin market is still small, so manipulation is inevitable. Over time as bitcoin becomes more mature and larger, manipulation will gradually disappear, and it will depend mainly on supply and demand.

[Negotiation]

That's right, supply and demand are the factors that affect the price of bitcoin usually goes up depending on the demand. Well of course this is a fundamental factor as it refers to any monetary unit be it securities or cryptocurrencies. The exchange rate rises in conditions of increased demand if people are ready to buy and buy, and falls if its demand decreases. In fact, every bitcoin holder if he skillfully and timely takes advantage of the artificially created hype and panic of rate changes can make or break it.

[irhact]

In your statement or ideas, what are the elements that can influence the price of bitcoin?

Emotions, I believe emotions because human emotions still plays a major role in the price movement of Bitcoin. The market isn't mature yet and been filled daily with novice who only comes here to try and get rich quick. They trade mainly on their emotions as they get easily influenced by the influencers on social media. They buy when they see the market picking up some price appreciation and sell at the slightest red candle they see.

With the constant level of price difference that happens to Bitcoin price during the bull and bear market, it only shows that the industry is yet matured and been ran by emotions of traders. To get the price mooning, all you just need, is to make the news positive and people will begin to fomo into the market.

[LUCKMCFLY]

I don't think that only one factor has an affect, I think there are many, such as whales, fundamentals, emotions, institutions, but for me what I think is happening is that it affects at this moment are the fundamentals, because they generate emotions that They become a domino effect. Now taking all this into consideration, it could be said that at this moment it is very difficult to say that only one factor can affect the price of bitcoin, if so, things can go in one direction, but it is not, but many believe that Yes, I am inclined towards only one and the fundamental war.

[Nrcewker]

There are a bunch of preconceived ideas about the aspects or justifications that affect the price of Bitcoin. I will give you some illustrations: Contest; Cost of production; Supply and Demand; Restrictions and Legal Matters etc.


In your statement or ideas, what are the elements that can influence the price of bitcoin?

Majorly according to me, the price mainly depends on supply and demand. As the Bitcoins are limited in number, that is the supply cannot be increased more, hence when the demand of the coin increases, the price will also grow. This can be simply demonstrated, if you visit an exchange and there is more buy order than sell order. Yes the other factor also affects the price and act as catalyst, but this supply and demand factor plays the important role.