Why Bitcoin price goes up and down. for new Beginners

[Peanutswar]

Basically its the rule of the supply and demand, if the bitcoin are into demand by the people or the investor there's a chance it will rise up and of course if they will get notice by the institutions and see the potential of this into their business and economy there's a chance that they might adapt into this so it will add again into the demand of the market and they will buy more. Now in terms of supply we knew that its only limited number of supply of bitcoin you can buy it into diffrent ways such as buying it into p2p, in exchange or mine your own bitcoin. Apparently, we only have 21M BTC supply only and if the bitcoin still have a potential in the community this will become a demand.

There's always a trader would like to catch and interested in the market but once they get tired and the sellers/bears win the market we can see another down trend of the bitcoin. Its just a classic of tug of war in the market.

[Publictalk792]

Price of Bitcoin is always changing since it does not fall under power of a bank, other it depends on buyer seller balance. When big number of people are willing to buy price goes up whereas when large number of people are willing to sell price goes down. These changes are caused by many things, including big companies buying Bitcoin new government rules, or large investors which are able to move market with such large deals at single time. Feelings are also important things because when price is increasing people will be in hurry to buy as they will feel greed whereas when price begins to drop, people will panic and sell because of fear.

[SquirrelJulietGarden]

Apparently, we only have 21M BTC supply only and if the bitcoin still have a potential in the community this will become a demand.

Clearly after many years since 2009, with increases of Bitcoin transaction volume and market trading volume, there is demand on Bitcoin. The demand has increased a lot with time and it is boosted by decreases and halves of new bitcoin supply in the future as effect from Bitcoin halvings.

Demand increases while future supply decreases, there will be unavoidable great effect on Bitcoin price, just a matter of time. If we realize this trend in the future, we can proactively take action from now and have better holding plans toward the future. By doing these things earlier than the other people, we will have better accumulative prices for our portfolios, and by holding our bitcoins with time, we will have better ROIs than late comers in the Bitcoin market.

[Baki202]

From the beginning, bitcoin has been an asset, and it was not designed to have a stable price, and only money is stable, so anyone that have the intention of investing in bitcoin has to understand how it works because the whole market is determined by demand and supply and another thing is that trends also have its on way of affecting the price so for first timers you have to understand that there are factors that affect the price of bitcoin so you need to understand it before you start.

And why are people having issues with all these things? It is because they did not read the manual well, because before you start investing, you are supposed to understand the behavior of Bitcoin so that newbies will not ask questions like this, but it is good.  Because when you don't pay attention, then you are not ready to learn.

[Jamestown70]

From the beginning, bitcoin has been an asset, and it was not designed to have a stable price, and only money is stable, so anyone that have the intention of investing in bitcoin has to understand how it works because the whole market is determined by demand and supply and another thing is that trends also have its on way of affecting the price so for first timers you have to understand that there are factors that affect the price of bitcoin so you need to understand it before you start.

And why are people having issues with all these things? It is because they did not read the manual well, because before you start investing, you are supposed to understand the behavior of Bitcoin so that newbies will not ask questions like this, but it is good.  Because when you don't pay attention, then you are not ready to learn.

You’ve said well and You’re right to some extent I’ll say, but the part where you said newbies need to understand how the market move before investing is not really a major priority or I would say it’s not something they must do before starting Bitcoin accumulation rather the necessity is to know how to buy and sell and also have common sense on how to manage their discretionary funds and to decide whether to go aggressive or wimpy based on which is friendly to their pocket while accumulating Bitcoin. On the long run, as they’ve started accumulating they can dive deep into understanding some technical aspect of bitcoin.
So newbies not knowing how the price moves or the highs and low shouldn’t stop them from investing into Bitcoin.

[Rustam Meraj]

From the beginning, bitcoin has been an asset, and it was not designed to have a stable price, and only money is stable, so anyone that have the intention of investing in bitcoin has to understand how it works because the whole market is determined by demand and supply and another thing is that trends also have its on way of affecting the price so for first timers you have to understand that there are factors that affect the price of bitcoin so you need to understand it before you start.

And why are people having issues with all these things? It is because they did not read the manual well, because before you start investing, you are supposed to understand the behavior of Bitcoin so that newbies will not ask questions like this, but it is good.  Because when you don't pay attention, then you are not ready to learn.

Way to reach success in investing in Bitcoin is that it should be studied as special tool with its own rules and not just money because its price is set by certain mix of low supply and mind habits on market.
Due to math limit of Bitcoin on life of 21 million coins and process of halving, which cuts number of coins given out by half every four years, market swings by nature, as world tries to figure out its fair price. Most new investors fail since they cannot have mind control to face usual price drops of 20-30% and mostly buy during high prices and sell during low price drops in fear. Your daily talk is not important, by reading guide and seeing that these twists and turns are nothing more than entry cost to long term growth, you can use Bitcoin as good way of making wealth in future.

[boyptc]

I think all are okay factors why the price of Bitcoin is moving unpredictably. Maybe sometime we can also include geopolitics that results for the demand to be moved.

So, it's all coordinated with what we think is happening to it. But for the newbies to understand, Bitcoin's volatility really is contributed by several factors.

Sometimes they are all the reasons why it moves. There are times that we just don't have an idea why it moves crazily.

[Out of mind]

The nature of the crypto market is to fluctuate; it depends on buying and selling, it always fluctuates over time. In that case, we can say that the way the Bitcoin market increases and decreases is its nature. It will continue like this as long as it exists. We know that the reason for the increase in the price of Bitcoin is its limited supply, no one can control it, no one can increase its supply even if they want to.
Moreover, big investors are holding their Bitcoins; they are not selling them, and currently various companies have started investing in Bitcoin. Since the number of Bitcoin investors is continuously increasing and the demand for Bitcoin is also increasing, the price is also moving towards increasing.
We are hopeful that the price of Bitcoin will reach much higher heights in the future, but we should not lose patience because the Bitcoin market will increase and decrease; this is a natural thing. Moreover, Bitcoin is an independent currency; no one has faced any loss by investing in it, and if you hold it for a long time, it is definitely possible to profit.

[Dechris_08]

Another important factor is liquidity and leverage.

When markets are highly leveraged, even small price moves can trigger liquidations, which accelerates both pumps and dumps.

That’s why Bitcoin sometimes moves faster than people expect, even without big news.

[Miles2006]

The cause doesn’t really matter rather it’s quite understandable bitcoin will always stand a better price range after dip, every newbie ought to know bitcoin volatile state first although demand and supply influences the market more especially when there’s a hype relating to company or government support. Just like previous past event, anyone who’s not knowledgeable enough can study the market movement, always there’s something attached to bitcoin bear or bull season, definitely higher demand with little supply increases the price range.

[Sambitcoin01]

New Beginners do ask why Bitcoin price goes up and later comes down, the answer is that Bitcoin price changes because of supply and demand, supply and demand change the price of Bitcoin which is affecting the traders.
Here are the main reasons:
1, Demand and supply: when large number of people wants to purchase Bitcoin and others wants to sell Bitcoin, the price will eventually goes down, Investors make alot of profit and people who buy early in low price leave their investment to grow, but when the price goes down, investors undergo losses.
2, New Event: when a well-doing companies accept to invest in Bitcoin, it makes the price to go up, sometimes due to government intervention or exchange hacks,this makes people fear and sell quickly.
3, fear and Greed: sometimes our emotions affect Bitcoin price, when it comes to fear it makes the price to drop, and when it also comes to greed, people develop interest to buy fast, this make the price to rise.
4, whales: (which simply means big investors) there are people who invest large amount of Bitcoin in which they are called ( whale), these people can control the price when ever they buy or sell in large Amount.

Supply and demand are fundamental economic principles that makes the price change. External factors like government actions or company investments mainly impact market opinions. Emotions such as fear and greed regularly increase market movements. Whales do have outstanding influence due to the sheer volume of their transactions.

[Luke3bird]

Supply and demand are fundamental economic principles that makes the price change. External factors like government actions or company investments mainly impact market opinions. Emotions such as fear and greed regularly increase market movements. Whales do have outstanding influence due to the sheer volume of their transactions.

In long term, supply and demand balance makes great impacts on price in the market but in short term, maybe we don't see any effects but it does not mean the supply and demand principle does not work on the market. It needs time for the market to absorb changes between supply and demand before price will response upward or downward.

Like sometimes we can read reports on supply shock that in theory should bring the price upward but we don't see any bull run. We might feel disappointed at that time but months later, the market will turn to very bullish while the reasons behind it already began months ago.