Why Bitcoin price goes up and down. for new Beginners

[Popkon6]

If you buy a Bitcoin and hold it (and if the price of Bitcoin does not go up and down, then no one will buy Bitcoin and hold it). So the price goes up and down. There is always demand in the Bitcoin market and big people who are buying and selling Bitcoin, as a result, the price of Bitcoin goes up and down. But if you have a Bitcoin and you do not sell that one Bitcoin, then your Bitcoin will not decrease. Even if the price of Bitcoin decreases, if you sell it, you will lose.
So if you keep this Bitcoin for a long time, you will definitely have a higher chance of profit, because look at the price of Bitcoin in the past because it increases the price of Bitcoin in a cycle.

[PrivacyG]

The answer is much more simple than that.  The Price goes up and down because people buy and sell.  One would be naive to think any Asset will only have positive Market movement and if they expect that, they are extremely immature.  Why does every thing else move in both directions and it is all right but particularly their Asset should never move in any other direction but up?  Ask them this question and let them think about it, there is no logical answer they can provide.

[Joeboy]

The price of Bitcoin is a reflection of how people in the market feel at any given moment, that is why I think that the major factor that drives the volatility of Bitcoin is Market Sentiment. Infact all the factors you mentioned are in one way or the other classified under Market Sentiment... For example the Whales/ the small investors can decide to buy Bitcoin based on their current feeling of confidence, and whatnot. Also when the FUD sets in, (all of which can be classified as the sentiment of the market), it can cause a massive sell off and immediate decline of prices...

[Creeper0]

The price of Bitcoin is solely dependent on supply and demand. All the other factors you mentioned do not directly affect the price of Bitcoin, but indirectly affect it depending on the first point. When we encounter a positive or negative event or hear positive or negative news, it affects our demand, as a result we see the price of Bitcoin in a volatile state. Even global economic instability affects the price of Bitcoin, because when it is difficult for people to meet basic needs, the demand for Bitcoin decreases, resulting in a decrease in the price of Bitcoin. Basically, the price of Bitcoin becomes volatile because of demand.

[MusaPk]

The price of bitcoin is volatile also the price of bitcoin sometimes goes up and down depends on the news , if its positive it might push the price of bitcoin up, while negative news might push bitcoin price down, this are some of the reason but there are lots of things, aside from that, this are just some examples, if you are really into bitcoin this are some of the considerations you need to know, big companies who can manipulate price also contribute to the price volatility.

We must take price volatility of Bitcoin as a positive things because it's volatility that has raised Bitcoin price from zero dollars to 120,000$ in just 17 years. The price volatility is capable of swinging Bitcoin price in both directions and we must understand this fact. One more thing we must keep in mind is that Bitcoin price may go bearish for long duration and we must not lose patience during that bearish season because price of Bitcoin will always recover in the long run.

[Mia Chloe]

~snip

It's just basic economics. More buyers means demand is high so price goes up and the reverse causes a sell. If you want to relate it to fiat then that's where the concept of demand and supply troops in. The basic reason for a limited supply is to increase demand that in turn causes price progression. On a regular basis this is generally economics for most assets and commodities.

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..

Fact is fear and greed is more like a further sub illustration of if demand is gonna be high or low which would either cause a pump or a dump respectively.

[SOKO-DEKE]

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.

Demand and supply are the main reasons why Bitcoin price goes up and down. As we all know, the lower the supply and the higher the demand, the more it will push the price  up. Since Bitcoin supply is fixed and more people are demanding it, the price will continue to increase. When people start selling, the price of Bitcoin drops because many people are are to sell,which make bitcoin available in the market which seem like their increase in supply but not. which means demand is low.What really contributes to this demand is news and events. For example, when companies start accepting Bitcoin, demand increases and the price goes up. On the other hand, when there is bad news, the price drops due to fear among investors.

[Faisal2202]

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:

You forgot halving, as it also has a huge impact on the price of Bitcoin. It is one of the biggest factors that drive the price in cycles. Although there are talks of a super cycle and all that stuff, which are still unclear, so there's nothing to worry about, it is still an effective factor.

The global economy is also another factor. When things are going down, financial downtrends, markets dumping, wars (hmm, war might be counted under news), the global economy going down can be summarized as a black swan event. These are unexpected events that pose a huge impact on the market.

[Japinat]

The price of bitcoin is greatly tied to its supply and demand, so when supply and demand moves, bitcoin price will be directly affected. When the demand increases, the supply decreases, seeing bitcoin price moves upward. But when the demand decreases, the supply increases, the price of bitcoin drops low. It always create price changes for bitcoin.

And simply with how the market moves unpredictably, sometimes it moves in a positive way, sometimes in a negative way, that also affects how bitcoin price performs in the market.

[Cookdata]

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:

You forgot halving, as it also has a huge impact on the price of Bitcoin. It is one of the biggest factors that drive the price in cycles. Although there are talks of a super cycle and all that stuff, which are still unclear, so there's nothing to worry about, it is still an effective factor.

The global economy is also another factor. When things are going down, financial downtrends, markets dumping, wars (hmm, war might be counted under news), the global economy going down can be summarized as a black swan event. These are unexpected events that pose a huge impact on the market.

Bitcoin circle is changing with price. I'm not sure if the next one is going to be the same or not but the 4 years cycle is change or has changed atleast. Theast Bitcoin bull run we had is one of the strangest ones we have had in years which is why I don't think Bitcoin will make a come back crazy growth. The days Bitcoin used to have 15x is becoming something of the past. Imagine where the Bitcoin market can make can do that return on investment, we are taking of seeing Bitcoin to $1m Bitcoin per price, that's clever but who and where is the liquidity going to comes.

 There is increase in political interest with politics, whether we admit to it or deny it. The truth is Bitcoin is affiliated with politicians and they one way or the other affect how Bitcoin works. Today, they are doing well and the market can do well and the next day the market is making a zigzag move because of their consequences. There decision doesn't only affect Bitcoin pricr, they affect how the market react sometimes. They can make the market bleed if they want, more like actions and equal opposite reactions of the market.

[Vaculin]

First and foremost, bitcoin is highly volatile, so its price isn't fixed but may crash or experience correction at times, that could leave the price varies from time to time.

Second, bitcoin gets easily affected with how the market moves, how the market events turned out, and how people will deal on bitcoin. Everything will leave an effect on bitcoin, but in the long run it still follow its own pattern and move following its own path on a positive manner.

[Faisal2202]

There is increase in political interest with politics, whether we admit to it or deny it. The truth is Bitcoin is affiliated with politicians and they one way or the other affect how Bitcoin works. Today, they are doing well and the market can do well and the next day the market is making a zigzag move because of their consequences. There decision doesn't only affect Bitcoin pricr, they affect how the market react sometimes. They can make the market bleed if they want, more like actions and equal opposite reactions of the market.

So you also agree that the cycle has changed and there is no doubt that this cycle was something different, as maybe it is the first cycle I am seeing while invested, but previous bull cycle was also not like this, and the history can easily be seen via reports and article so.

Anyway, politics is not influencing the price it is the US mostly because the Fed news is what is driving the price these days due to the increase in the involvement of Wall Street with BTC. Every Fed news and every economic news from the US has some impact on the price of BTC.

[Luzin]

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.

This is what makes Bitcoin unstable and without a fixed value. This is what makes many people tend to take advantage of it for societal needs. Moreover, an unstable condition will certainly make many people panic and feel disadvantaged. This is the kind of moment we have been waiting for. Those who are able to make the most of this moment will gain more benefits.

[Franctoshi]

Taking you for instance, using the traditional market day-to-day trading. When there's a supply of  a product in the market, or it appears that people are not needing it much, then it causes it to start falling or going down, which is excess supply.

Secondly, in a situation where a particular product becomes scarce, everybody wants it, and those that have it don't want to sell it. What happens is that, for those that have to sell, they have to increase the price, or in some situations, people that is need of that product may tend to overprice those that have it in order to entice them to sell, and that causes the price to jump. )Increasing demand)

[Youngrebel]

The reason why bitcoin price is actually going up or down is dependent on one thing only and it is your first point which is demand and supply, for me the other three listed points are above are just still under demand as supply as they do not themselves affect bitcoin price directly but rather have to be effected by the demand and supply of the investors. If a new event happens for like your example a big company announces to invest into bitcoin then it will only affect bitcoin price if the investors take this as a positive sign to actually invest then the demand goes high and it increases the price of bitcoin or if the move discourages then to actually increase supply.


None of this events can actually affect bitcoin directly it requires investors demand or supply, the bitcoin price doesn’t go up because one person buys large amount of bitcoin or government enacts some rules, the Market has to actually be able to react depending on the reaction of investors

Of course there's a little truth in all of the points raithsed by the OP..we know demand and supply are the major major reasons for the regular price fluctuations but the other points too are valid when you critically look at it . One wag or the other all points are valid.

[nakamura12]

The main reason is demand, besides demand, there are other factors that support the rise & fall of prices.

When demand rises, BTC price will 📈
When demand drops (selling action), BTC price will 📉

Whales, economic news, dominant country government policies, socio-cultural factors are only driving factors in the process of rising & falling prices, it's that simple bros @Queen uloma.

It's always been demand why price of Bitcoin increased especially when it's time for it's trend or event which increase more demand. Supply can also be a reason for the price increase if there will only be less supply like people are holding more bitcoin and the market will only have less supply while the demand is stable or increasing. You should know that if there are less people selling then there won't be lots of supply so the price will also increase.

[AYOBA]

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.

I think you’ve already given answers to the questions. Because the Bitcoin price can just go down without a reasons and I can see that you’ve give listed a reasons blow in you’re thread, but this one number 1 is the first and concrete reason because by the time number of demand and supply that are purchased are much the price of that thing it can definitely go down not only the Bitcoin.

Yeah, the investors are the first people’s who undergo loses why? Is because their the one that buy with the large amount of money when the price is low and also buy when the market is high too, as the investors prefer to leave that investment to grow so that they can get huge profits in return; that’s why they leave it to grow for a long term.

[Maslate]

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.

No, this is wrong.
As long as you strongly hold your Bitcoin during downtime, there will be no losses at all.
If you have 1 Bitcoin, it will remain 1 Bitcoin even though the price goes down too much. 
Losses occur when you sell it, even if the price goes down.

Higher price of bitcoin comes with higher profitability, and lower price of bitcoin comes lesser chances of getting profits. 

So if you decide to sell your coins when bitcoin price is high, you will definitely make profits if you sell higher compared to the price you bought it. But when you sell your coins lower than the price you first bought it, no matter how high the current price is, you will still endure losses.

Losses occur when you sell at a lower price, profits happen when you sell at a clearly higher and impressive price.

[ShirenYumna]

The price of bitcoin is volatile also the price of bitcoin sometimes goes up and down depends on the news , if its positive it might push the price of bitcoin up, while negative news might push bitcoin price down, this are some of the reason but there are lots of things, aside from that, this are just some examples, if you are really into bitcoin this are some of the considerations you need to know, big companies who can manipulate price also contribute to the price volatility.

There’s a lot of negative news circulating right now, yet Bitcoin is still going up to around $97k. Do you think negative news really matters, or is it simply not strong enough to push Bitcoin’s price down?

[Zigabel]

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 a lot 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.

All of this you have mentioned are all true about the price of Bitcoin, they come together to give Bitcoin the volatility it does have which in turn becomes the reason for the profits that is been seen on the investments of some of the investors of Bitcoin. There is also another factor that we shouldn't fail to mention and that is with the Bitcoin cycle, people who follow with the dynamics of the Bitcoin cycle, they do wait for a certain time upon which they take an action and then that could also influence the pricing of Bitcoin either up ways or downwards. so understanding Bitcoin cycle and the reactions of people to it, that also has Got its own effect that leads to the reactions of whales and other small retailers.