What is responsible for the fluctuation in the bitcoin price?

[serjent05]

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?

I think we need to learn the basics of the economy, the principle of supply and demand.  Even if the supply is fixed, but the demand is variable (ever changing), the price will naturally fluctuate.  More demand means higher prices, less demand means lower prices.  The market price adjust because of this principle. 

In addition, if the supply is variable and the demand is fixed, the price also fluctuates.

 

or is it a program that enables the bitcoin to be a continuous topic?

This is not a program but rather the law of supply and demand.  Any hot items does not need a program to be discussed continuously unless someone is making marketing propaganda and maintaining this kind of propaganda.  As for Bitcoin, I think it is a mixture of the law of supply and demand and people creating propaganda and schemes to make Bitcoin a continuous talk in the market.  But I think even without the schemes, Bitcoin is still a hot topic in the market because of its high volatility, risk, and potential.

[ColdLava40]

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?

Fluctuation doesn't boost price, it only shows how much of demand and supply we have in the market.

It's more like an indicator of the current behaviour or actions carried out by investors related to price moves.at every point In time, it's either the buyers are winning or the sellers are winning. One can't hold the market for too long.

The buyers needs to get bitcoin at a much lower price, so when they have exhausted all their buying power, they simply give up and then the sellers take over.

I guess this is where the balance comes it. At that very peak, where buyers exhaust their liquidity, they begin to sell and wait for a lower price to continue the buy once more. It's an endless cycle. Over and over again the process repeats it's self, that's how price continues to break ath..

[terrific]

was the fluctuation programmed for the purpose of the bitcoin growth or it is to create a balance between fiat and crypto?

It is and that is because of its volatility. When there's volatility, fluctuation is a permanent character and factor of an asset.
Even in fiat, there are specific assets and investments that are also volatile and so if that program you're calling, they're also the same.
I guess the easiest explanation is about the law of supply and demand. Because it applies to all assets and investments that have risk.

[nakamura12]

The fluctuations in the Bitcoin price is not programmed because it is all about the supply and demand. The higher the demand the higher it's price will be and the less demand it is the lower price it is. If there's a good news for Bitcoin then some people will buy it and when that happens means that the demand will increase and as I have explained that if it increased then the price will also increase. Bitcoin is also volatile so that's why there's fluctuations.

[CryptoYar]

This fixed supply means that Bitcoin cannot grow to answer rise in need like regular gold. With gold, miners can make more gold to deal with higher price. However, Bitcoin cannot grow to provide needed amount, forcing price to swing wildly to matchmarket.

This means that current 45 percent clean out in early 2026, down from a high of $126,296 and almost to $60,0000, is needed cleaning out of gamblers and way for long term big players to buy before next shortage driven jump. Fear of crash is cost of joining for long term growth, with each turn building new higher bottom price in time before next cut in supply.

[kotajikikox]

There's really no program being run here but pure economic conditions. The concept of supply and demand which drives the price or value of a product has existed way before and this is the very core of bitcoin and what dictates the market.

[laijsica]

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?

Bitcoin's limited supply of 21 million makes it different from centralized wealth. Fiat is a commodity with unlimited production that the government controls and uses to maintain financial order among its citizens. Sometimes inflation is a strategy to steal the wealth of its citizens. Increasing the exchange rate means robbing you of your wealth. It's not a robbery by force, but it's taking it away from you.

Bitcoin's limited supply of 21 million means that it is a store of value and, because it is a decentralized asset, it is almost impossible for individuals or groups to increase the supply for personal or group purposes. The inevitable increase in demand and the strong possibility of Bitcoin price increasing in the future. The decline or increase in price is a regular part of the market.

[DanWalker]

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?

It is not regulated by government otherwise there would not have been soo much fluctuations.

Most of it is determined by supply and demand but sometimes it is also done artificially by whales.

It is not that crypto can not be regulated or is completely outside government control. To be precise, there is no clear legal framework and it is not yet strictly regulated. Therefore, manipulation and speculation remain quite prevalent. That is why the cryptocurrency market is more volatile than any other market.

It can be said that the imbalance between supply and demand is the cause of Bitcoin's volatility. However, the lack of regulation has created loophole that allow financial forces to manipulate and speculate, making the industry more volatile.

[PrivacyG]

Halvings make Bitcoin twice as expensive to mine if the Price never moved and Miners have to sell on a Profit.  This probably has some of the most influence over the fluctuations.  At least one year after every Halving it seems.

[ancafe]

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?

Both supply and demand play a significant role in bitcoin's price fluctuations, although sometimes other conditions also drive bitcoin's volatile movements. If these fluctuations are programmed for bitcoin's growth and to create a balance between fiat and crypto, the question is, who programmed them? If demand increases, it will drive the price upward and vice versa, with a downward process and this is interpreted as a supply and demand formula.

Bitcoin assets can be much more complex because some people encourage buying them for storage of value, even though their short-term movements may be quite speculative. Sometimes when someone is unable to see the concept of supply and demand it is difficult to find an answer because there are other factors that may not be able to be ignored.

[FortuneFollower]

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?

It is not regulated by government otherwise there would not have been soo much fluctuations.

Most of it is determined by supply and demand but sometimes it is also done artificially by whales.

It is not that crypto can not be regulated or is completely outside government control. To be precise, there is no clear legal framework and it is not yet strictly regulated. Therefore, manipulation and speculation remain quite prevalent. That is why the cryptocurrency market is more volatile than any other market.

It can be said that the imbalance between supply and demand is the cause of Bitcoin's volatility. However, the lack of regulation has created loophole that allow financial forces to manipulate and speculate, making the industry more volatile.

They basically play the game without hard-proof rules.

And they like to make a profit from it

[whiteblue]

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?

The fluctuation is not intentional as you assume, the fluctuation occurs because of the supply and demand on bitcoin itself which can therefore trigger price rises and falls, this is common knowledge that everyone should know, it is already the law of the market, any item in this world once it has entered the market then it depends on supply and demand, if the problem is not on supply, let's say all bitcoins have been mined and bitcoins are all available, then what will trigger the fluctuation is market demand.

[DeeppRockk]

Halvings make Bitcoin twice as expensive to mine if the Price never moved and Miners have to sell on a Profit.  This probably has some of the most influence over the fluctuations.  At least one year after every Halving it seems.

the flaw in your logic is assuming miners are a monolithic bloc operating on a simple profit motive. the system isn't designed that way. the halving is a protocol rule, a deterministic reduction in the block subsidy.
the market's reaction to it is an emergent property of thousands of independent actors with different time preferences, energy costs, and regulatory environments. a miner in texas with a fixed-rate power contract has a completely different profit threshold than a venezuelan miner using subsidized diesel.

the 'influence over fluctuations' isn't a direct causal chain from halving to price. it's the halving exposing the underlying fragility or strength of the mining sector's business models. the forced selling you mention is just the weak hands getting shaken out.

it's a brutal, to a degree, Darwinian selection of the most efficient capital.

you're observing a systemic pressure release valve and misidentifying it as the primary engine. the real influence is the unwavering certainty of the subsidy schedule against the chaotic backdrop of global energy markets and human greed.

the price discovers itself through that tension

[hero_the_bossman]

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?

The fluctuation is not intentional as you assume, the fluctuation occurs because of the supply and demand on bitcoin itself which can therefore trigger price rises and falls, this is common knowledge that everyone should know, it is already the law of the market, any item in this world once it has entered the market then it depends on supply and demand, if the problem is not on supply, let's say all bitcoins have been mined and bitcoins are all available, then what will trigger the fluctuation is market demand.

the rolling of BTC from hands to hands, from exchanges and etc., but you are partially right, of course 

[The Cryptovator]

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?

Since you are new to the forum, it would take a little bit more time to understand how Bitcoin and Bitcoin prices work. The things aren't so complicated; you just need to know the reality. I will not talk about the Bitcoin technology; just keep in mind Bitcoin is decentralised. The goal of Bitcoin creation was to make borderless transactions without any third-party involvement. There's no engineering about the price movements. It's all about the supply and demand.

Though Bitcoin supply is fixed but due to miners rewards circulation supply increasing. Unless investor demands increase, the price wouldn't move up; if demands increase, then the price would move up. It's just like normal markets in our daily life; if any product is short on the market, then the price goes up. There are a lot of examples in the local market of how product prices go up, and Bitcoin prices work similarly.

[Versatile_choice]

If you ask me I would say that the same thing that triggers the price to go up is also responsible for the fluctuation in the bitcoin price and that is the demand and supply, yes this is just the reason behind the market fluctuation any reason aside from this seem to be fake. Some people claims to know the reason behind every movement but that's not true it's just a mere speculation, I could remember when the price of bitcoin goes up people were saying that it is because saylor bought a large amount of bitcoin and other related cases but saylor alone can not shake the whole market there might be other people who are also buying or selling so those are the things responsible for the fluctuation in the bitcoin price.

[hero_the_bossman]

If you ask me I would say that the same thing that triggers the price to go up is also responsible for the fluctuation in the bitcoin price and that is the demand and supply, yes this is just the reason behind the market fluctuation any reason aside from this seem to be fake. Some people claims to know the reason behind every movement but that's not true it's just a mere speculation, I could remember when the price of bitcoin goes up people were saying that it is because saylor bought a large amount of bitcoin and other related cases but saylor alone can not shake the whole market there might be other people who are also buying or selling so those are the things responsible for the fluctuation in the bitcoin price.

Nobody can count in all the factors. Only the majority of them. The rest would be behind the curtains, basically..

[tbct_mt2]

Each movement of those speculative asset depends on supply and demand. So if more people buying automatically the price would eventually rise and if more people dump there's a decline will happen, this is the basic thing we can explain on why those situation happening. Also those moves will also depends if there's either positive or negative news that will come out which cause those movements.

Maybe he believe to much on those conspiracy and other exaggerated stories told to him that's why he assume that those what he said is really happening.

With Bitcoin investors who did enough searching about this market, and understood it well enough, they will have no need of finding reasons and explanations why the market moves up or down too dramatically within a short time. Through their searching and learning, they already understood that news are used to manipulate this market and news can be released to satisfy demand of finding reasons behind any market dramatical movement.

They feel comfortably, not panic with such market movements with good knowledge about the market history, and perhaps had good plans for taking advantage of such market chaos. Only people who are new, don't learn enough, and have no strategy or bad strategy, will feel panic during such times. They are people who always try to find news, reasons for explaining the market especially why they lost money in this market.

Unfortunately, they will find what they look for with news while it's not the truth.

[aylabadia05]

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?

It wouldn't be a valuable asset, unlike other coins that are launched almost every time, if the Bitcoin supply were fixed or changed from 21 million to 40 million or any other number. 21 million is a fixed total, and that number will never change again.

Fluctuations are inherent in the laws of supply and demand, and I don't think they're programmed for the purpose you're referring to, even though people are pairing Bitcoin and crypto with fiat. However, market sentiment is also a factor that can change the situation for investors who are concerned about supply and demand.

[macson]

Bitcoin price fluctuations aren't caused by programming, like automated trading algorithms, but rather by market dynamics, where supply and demand directly influence the price. For example, when there is positive news, investors buy more bitcoin, causing the price to rise. When there is a mass sell-off, the price of bitcoin will correct itself. So it is more of a natural market mechanism rather than something that is deliberately manufactured.