What is responsible for the fluctuation in the bitcoin price?

[ScamViruS]

This is a market where people buy and sell Bitcoin when they think they should sell or buy. Since there is a buy and sell in the market, the market will fluctuate depending on supply and demand. It is not programmed by anyone, it is decided by the real-time market. The market moves at its own pace, and it depends on the sellers and buyers how much volatility there will be in the market and what impact it has on the market, both fundamentally and technically. Those who trade regularly in the market know how active traders are in the market and how the market decides the price.

[Peanutswar]

Because of the basic rule of the market. The supply and demand. If the total number of the bitcoin mined already and there is a demand still with the bitcoin only now number of bitcoin is now limited and you can have this coin if you wanted to bought this into an exchange or buy this into p2p now if there is a demand there is a chance of increase of the price now if there is no more support the bitcoin of course there's a possible downwards of the price now here is the catch of the bitcoin we are now into shifting with the web3 which is most of them are now shifting into wallets and payments with a websiet so once of the most used is the crypto. Now its up to you if you are still support the bitcoin or crypto with this upcoming innovation.

[Patikno]

Bitcoin being one of a kind that has limited number of 21m bitcoin that can be sold or can be in circulation, this brings me to a point of thinking, if the Max supply of bitcoin is fixed what is responsible for the fluctuation? or is it a program that enables the bitcoin to be a continuous topic?
this also narrowed my thinking to maybe the fluctuation is the booster because the bitcoin price mostly grows higher than its previous prime after every fall of the market price, was the fluctuation programmed for the purpose of the bitcoin growth or it is to create a balance between fiat and crypto?

Every asset with value, will naturally experience a price increase or decrease when there is buying or selling. If demand (buying) for Bitcoin exceeds supply (low), then the price of Bitcoin will increase. This applies to anything, including gold, silver, bronze, or even items we can find in traditional markets, such as staples for daily needs, whether spices or other necessities (wheat, rice, etc.). All prices are highly dependent on supply and demand.

Back to the main topic. Bitcoin price fluctuations are influenced by market activity, which involves supply and demand, as I mentioned earlier. Various factors influence market activity. We can see the causes of these fluctuations in the news from various sources. For example, you can see search news  about why Bitcoin rises or falls. Essentially, it is all about supply and demand.

For further information about it, you can try the following reference : wikipedia - Supply and demand

Additionally, you need to know that the limited supply of an asset will significantly contribute to its price increase, especially in the long term. You can probably see why certain antiques command such fantastic prices, or why a car with only one in the world is so outrageous, right? Well, I think you understand a bit by now. Back to Bitcoin. Personally, I believe Bitcoin will always be superior compared to anything else, because its supply is limited to 21 million, and even some of it can be considered lost (because it can't be accessed by its owners), which makes it even more scarce.

Furthermore, I believe the difficulty of mining Bitcoin also makes it even more valuable, and I believe that is why many Bitcoin miners hold it for the long term, because they are unwilling to sell it at a price they deem cheap. Bitcoin also has utility and can be used by anyone, whether as a store of value, for transactions, or anything else. Bitcoin adoption is also growing daily, from individuals, companies, institutions, and even countries.

In conclusion, Bitcoin may seem volatile in the short term, but its price will definitely increase in the long term, and I really believe that will happen.

[hero_the_bossman]

This is a market where people buy and sell Bitcoin when they think they should sell or buy. Since there is a buy and sell in the market, the market will fluctuate depending on supply and demand. It is not programmed by anyone, it is decided by the real-time market. The market moves at its own pace, and it depends on the sellers and buyers how much volatility there will be in the market and what impact it has on the market, both fundamentally and technically. Those who trade regularly in the market know how active traders are in the market and how the market decides the price.

The only trader we won't see as frequently is the smart money moving in bulks usually or not seen for everyone's eye

[dezoel]

The volatility is caused me liquidated not the volume or size. While we might look like we are trillion dollar big thing, it is not really that big when you look at the liquidity of the places.

It means at exchanges we have billions trading at most, and when you have that, even a few hundred millions dollars being sold within the same hour impacts the price a lot. And considering sometimes that does happen even with just retail investors selling and futures liquidated, when whales get involved it's even easier.

[Akbarkoe]

The volatility is caused me liquidated not the volume or size. While we might look like we are trillion dollar big thing, it is not really that big when you look at the liquidity of the places.

It means at exchanges we have billions trading at most, and when you have that, even a few hundred millions dollars being sold within the same hour impacts the price a lot. And considering sometimes that does happen even with just retail investors selling and futures liquidated, when whales get involved it's even easier.

But wouldn't it be more logical if it was about supply and demand and big players like whales or institutions playing it here? As common knowledge is that demand and supply influence prices, but in another story I have heard that there are exchanges that sell position data to their traders and it could be that the liquidation scheme carried out by market makers is a reason why liquidation is an important part in influencing price volatility.

[Judith87403]

Bitcoin owns a fixed supply of 21 million coins, yet price isn't controlled by its code. The scheduled supply is programmed. Bu the price is not.

Fluctuation occurs as a result of supply and demand in the market. If more people want to purchase than they sell, price rises. If fear, gain taking, regulations, or huge holders selling increase supply, then price falls. News, macroeconomics, ETFs and liquidity all play a role.

Volatility wasn't built to boost growth or to balance fiat. It is just what occurs in a free market with limited supply and demand changing.

With time, growing adoption has forced prices higher, yet that is an outcome of the market, not a feature that is built-in.