For the time being I have joined bitcointalk and also the bitcoin market. I always hear that, when the market is buying there will be an increase in price of bitcoin and when it is selling there will be a decrease in the price.
My question is that, what makes the price go up as people are buying and the price goes down as people are selling because what I understand is that this action cannot increase or reduce the quantity of bitcoin available, so what action actually makes it to increase or reduce in price, is it the marketers, miners or who does that? Is there any technical reason behind that actually?
More clarification on this will be appreciated.
Miners don't determine the price of bitcoin nor the marketers, it all about the demand of bitcoin and the available supply of bitcoin.
You need first understand that the bitcoin maximum supply will not exceed 21 million, that's has been the basis of the supply of bitcoin and out of that supply, only few about 19 million are in circulating supply. In that circulating supply, there are many that has been lost and by that I mean the private keys to unlock this coins are lost, that means the bitcoin on this wallet can not be accessible, they are gone and los forever, there are many that have not been move for the past 10 years in legacy wallet, the owners have left them idle which people most time refer to as rich list. The rest are been held in exchanges and individuals and I don't that number can account for 50% of the circulating supply, that said.
Now, the bitcoin market is dependent on supply and demand; the remaining bitcoin are been traded on exchange , when a buyer need a bitcoin, he has to agreed to buy on the seller prices, so technically the supply of bitcoin is low and now imagine everyone around the world want to buy bitcoin and there is few bitcoin available, everyone will rushing to buy and the sellers will keep adjusting their sale price and the buyers will also continue to shift their own price as well just to close the spread and have there coin purchase. This is how the price is move and increase and similarly lower when there is fear uncertainty and doubt.