What is responsible for the fluctuation in the bitcoin price?

[Agathamay]

Price of bitcoin is equals to marketcap divided by circulating supply.

Price = marketcap ÷ circulating supply.

Marketcap is proportional to demand. Which means increasing demand means increasing marketcap and decreasing demand means decreasing marketcap.

As people buy, can you see from the formula that the price will increase? Also as people sell, the price will fall.

the higher the demand bitcoin(the more people buy), the more scares it becomes and the higher the price and the lesser the demand(lesser purchase), the more available the coin is and price reduces and in conclusion, the price of bitcoin works on the principles of demand over supply because the supply is fixed and demand now controls it's market.

[dunfida]

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.

If you are just that new into this market then make it sure that you are that well-informed about the behavior, the movement, sentiments around on what you've been investing into. So that when the time comes that the market would be making out such huge movements whether up or down without any reason behind then you wont be getting shocked with it. Same goes when you are trying out to attach with some fundamentals about the reason of such fluctuation then it might do but we do know that this market could move out without having reason behind or simply its unpredictable. Its important that you are that wary about on the market conditions or on how it moves on which on this way on where you would be able to find yourself being able to adjust accordingly. Trading up this market is never been that easy and the reason could neither be those news popping around but come to think that the market could move out without any valid reason behind or simply its random and thats how speculative this market is. Its best that you can be able to adjust out accordingly.

[Dunamisx]

The market may be bound to react to any slide adjustment in the market price and this may impose a significant difference on the value because we are already in the bear season, which is very common and we should also know that it is just the Way of the market performance for now being at a dip.

[Ever-young]

The market may be bound to react to any slide adjustment in the market price and this may impose a significant difference on the value because we are already in the bear season, which is very common and we should also know that it is just the Way of the market performance for now being at a dip.

Focusing on the short term performance of bitcoin’s price can be a bit tricky, especially for those who are still very new to the market. This is the exact reason why they’re often advised to rather shift their focus from the short term performance to the long term trajectory of the the asset because this way, they get to protect themselves and their emotions more by not looking at the short term performance.

[Stalker22]

You are making things more complicated than they really are and missing the fundamentals of economics.  It is a market.  People sell when they are scared or need cash; therefore, price goes down.  People will buy when they are greedy and/or feel uneasy about inflation; therefore, price goes up.  There is no secret "fluctuation program" hiding behind the curtain.

The only thing that is written into the Bitcoin code that will impact bitcoin prices would be its halving, and will result in a 50% reduction in the number of new bitcoins produced.

[CageMabok]

The market may be bound to react to any slide adjustment in the market price and this may impose a significant difference on the value because we are already in the bear season, which is very common and we should also know that it is just the Way of the market performance for now being at a dip.

Bitcoin price declines and increases are always present in the market under any circumstances. However, if we look at market cycles and moments, this year has indeed tended towards price declines, regardless of the sentiments that can influence the overall market. What is somewhat surprising, however, is that each time there has been a Bitcoin price decline, it has always been associated with more selling than buying overall. Therefore, Bitcoin's price increase could occur again when there is more buying in the coming months.

[irhact]

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?

Bitcoin flunctuating is caused by many reasons just because Bitcoin has 21 million supply does not mean the market is not going to fluctuate. Bitcoin is a market that has a lot of emotions involved because we have many traders that do not have any experience and many retail investors that are just buying their first investment. To understand the market you need to understand that human beings are looking for what to give them quick profit and many of them seize Bitcoin as the only way that they can invest and get a lot of profit when the market did not have so many cryptocurrencies the market was not fluctuating that much but with the introduction of so many cryptocurrencies right now the market has been influenced because when other coins start falling people begin to panic and instead of them to hold their Bitcoin they start selling their Bitcoin. Some individuals think that Bitcoin is like other alt coins therefore they panic whenever the market is falling but they don't know that Bitcoin can fall but it will always increase when the time is right. Bitcoin market is getting stronger but still we should be expecting a lot of fluctuating because the market is still young and the market has a lot of emotions involved.

[Silikiem]

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?

Bitcoin flunctuating is caused by many reasons just because Bitcoin has 21 million supply does not mean the market is not going to fluctuate. Bitcoin is a market that has a lot of emotions involved because we have many traders that do not have any experience and many retail investors that are just buying their first investment. To understand the market you need to understand that human beings are looking for what to give them quick profit and many of them seize Bitcoin as the only way that they can invest and get a lot of profit when the market did not have so many cryptocurrencies the market was not fluctuating that much but with the introduction of so many cryptocurrencies right now the market has been influenced because when other coins start falling people begin to panic and instead of them to hold their Bitcoin they start selling their Bitcoin. Some individuals think that Bitcoin is like other alt coins therefore they panic whenever the market is falling but they don't know that Bitcoin can fall but it will always increase when the time is right. Bitcoin market is getting stronger but still we should be expecting a lot of fluctuating because the market is still young and the market has a lot of emotions involved.

Yes for sure, no one can tell the main reason for bitcoin price fluctuations as there are so many factors which are responsible for this and most of these factors are unknown to us. Bitcoin is a decentralized asset, no one controls its price and that’s why it’s difficult to predict correctly what the price will be in the next few seconds. Bitcoin has proven to be the most valuable asset in the crypto space and most of this altcoins depends largely on the performance of bitcoin and not bitcoin depending on them for performance. Rather than investing in bitcoin with emotions it’s better to focus on consistent buying with just a discretionary income especially after sorting out your basic financial needs and hodl for long term purpose.

[FanEagle]

All those "reasons" are not the main reasons, main reason is that we are a volatile market that we can easily buy and sell and that is why it happens.

While it is true that stock sand what not could be the same, there are more liquidity there in the big ones so it is harder to move it this way plus the options are a lot more whereas in bitcoin world we love bitcoin and a few others but most others are smaller in marketcap and liquidity. So what we can safely say that it's clear why we are more volatile, and all those "news" is just not the main reason.

[MusaPk]

You are making things more complicated than they really are and missing the fundamentals of economics.  It is a market.  People sell when they are scared or need cash; therefore, price goes down.  People will buy when they are greedy and/or feel uneasy about inflation; therefore, price goes up.  There is no secret "fluctuation program" hiding behind the curtain.

The only thing that is written into the Bitcoin code that will impact bitcoin prices would be its halving, and will result in a 50% reduction in the number of new bitcoins produced.

Every market goes up and down with time and its no surprise if Bitcoin price has gone down significantly. We have seen impact of global news and events on other markets like stock and gold. Similarly Bitcoin price is also affected because of global events. We have seen significant increase in price of Bitcoin few months back and its normal practise that market takes correction after ever massive bull run. The current decline in price of Bitcoin is nothing to worry but an opportunity to buy Bitcoin at discounted rates.     

[Gentle_Soul]

I don't know where he get that idea about being programmed since Bitcoin actually don't move that way base on what he said. Also all a

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.

Exactly what I thought too Bitcoin fluctuation can not be attributed to a particular program which controls it.
There are a few things that can actually affect Bitcoin price.
Bitcoin price can also be affected if some really big holders decide to sell off there holdings the price will drops because quite a good amount of holdings were sold out.
When an exchange is done if there are any hacks which results in loss of funds then the Bitcoin protocol becomes vulnerable.
Also if a country decides to adopt rules that does not favour crypto currency or that do not support crypto currency then it does have a way of affecting the Bitcoin market also applicable when a country adopts crypto friendly rules definitely there will be a impact on the flow of Bitcoin.

[Stepstowealth]

All those "reasons" are not the main reasons, main reason is that we are a volatile market that we can easily buy and sell and that is why it happens.

With time, we may not see this much fluctuations in bitcoin price, we may have a much more stable value for it, I think that point will be when bitcoin has been accepted and many people now own it and make use of it, not just the angle of investment.

Buying and selling due to sentiments is the leading reason for fluctuations.

[purple_sparkles]

Almost everything has its cycles nature, life, the economy, wars, business, even epidemics. How exactly these cycles are formed is something very few people can truly understand or explain, and even then, there’s no guarantee that their explanations are the ultimate truth. Perhaps those who deeply understand code and complex systems are better able to identify patterns, but there are not that many such people otherwise, we would all already be extremely wealthy for generations to come. Even without fully understanding the root causes of these cycles, simply being aware of their existence can at least help us avoid panic and use this knowledge to our advantage, even without deep analysis.

[Jostern]

Bitcoin is a volatile currency so why do you think anything will be responsible for the fluctuation of Bitcoin, I have been investing in Bitcoin for a long time, I have seen people saying that Donald Trump and the rumors of war and policy of Donald Trump are things responsible for the situation of bitcoin, but I have never agreed to that motion because that isn’t a true motion instead buying and investing in Bitcoin is more important than pondering on things that are totally unnecessary, people and individuals can always try to speculate about bitcoin, but I must say that they are free to think that way and think otherwise, but buying bitcoin is the most important and efficient way, instead of thinking about things that are responsible for the fluctuations of the price of bitcoin, I think it’s not really important to me, instead buying and holding bitcoin is the most importantly thing and having a discretionary income to keep accumulating consistently.

[Sunshine1525]

Bitcoin is a volatile currency so why do you think anything will be responsible for the fluctuation of Bitcoin, I have been investing in Bitcoin for a long time, I have seen people saying that Donald Trump and the rumors of war and policy of Donald Trump are things responsible for the situation of bitcoin, but I have never agreed to that motion because that isn’t a true motion instead buying and investing in Bitcoin is more important than pondering on things that are totally unnecessary, people and individuals can always try to speculate about bitcoin, but I must say that they are free to think that way and think otherwise, but buying bitcoin is the most important and efficient way, instead of thinking about things that are responsible for the fluctuations of the price of bitcoin, I think it’s not really important to me, instead buying and holding bitcoin is the most importantly thing and having a discretionary income to keep accumulating consistently.

Basically, it is the demand and supply of bitcoin that controls the price fluctuation but logically those things you mentioned plays a role in the fluctuations of the market they cause market manipulation thereby causing people that lack patience to panic and sell off. You know that the more people sell the more the value of bitcoin decreases.

[Zaguru12]

Bitcoin is a volatile currency so why do you think anything will be responsible for the fluctuation of Bitcoin, I have been investing in Bitcoin for a long time, I have seen people saying that Donald Trump and the rumors of war and policy of Donald Trump are things responsible for the situation of bitcoin, but I have never agreed to that motion because that isn’t a true motion instead buying and investing in Bitcoin is more important than pondering on things that are totally unnecessary, people and individuals can always try to speculate about bitcoin, but I must say that they are free to think that way and think otherwise, but buying bitcoin is the most important and efficient way,

I don’t understand why you think there wouldn’t be anything that is responsible for an asset fall or raise. Bitcoin is an asset or a currency just like others so there must be reasons why it is actually falling or rising and it is classified as supply and demand. An increase in one will most surely affect the market and an increasing fluctuations in both is what causes fluctuations in the market.

This demand or supply also are affected by factors which mainly are economically factors like other assets and if the economy takes another turn it affects the price and that’s why you see political news like trump been speculated as what affects the market but it might not be it but surely world economy affects the market

[Pressurizedem]

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 have become something we should be more careful about because this particular project have been dominant for long but with market sessons, it's been really some bear and bull season. Bitcoin is very important for everyone especially the top whales in the market, there's no coming back to when one have already made the moves.

The fluctuation of Bitcoin is also caused by the seasonal changes in the market. When there happens to be dip, it tends to affect Bitcoin and putting panics on the holders of Bitcoin, persuading them to trigger the sell order because they're not ready to see their account run into liquidation. On the other hand, Bitcoin can be very volatile especially when the market is in Greens, you can make quite good amount of profits.

[DeeppRockk]

Bitcoin have become something we should be more careful about because this particular project have been dominant for long but with market sessons, it's been really some bear and bull season. Bitcoin is very important for everyone especially the top whales in the market, there's no coming back to when one have already made the moves. The fluctuation of Bitcoin is also caused by the seasonal changes in the market. When there happens to be dip, it tends to affect Bitcoin and putting panics on the holders of Bitcoin, persuading them to trigger the sell order because they're not ready to see their account run into liquidation. On the other hand, Bitcoin can be very volatile especially when the market is in Greens, you can make quite good amount of profits.

youre looking at this on too small a scale. These aren't mystical 'seasonal changes' in the crypto market.

What youre witnessing is the global financial system attempting to price a completely new, non-sovereign asset for the first time in history. This volatility isn't a bug; it *is* the price discovery mechanism, operating on a massive scale.

You have an asset with a fixed supply and no central authority colliding with a world of nation-state currencies, central bank interest rate decisions, and institutional capital that moves in the trillions. Of course its volatile. That 'dip' isn't because 'holders are in panic.' its because the Fed hinted at a rate hike or a multi-billion dollar ETF reported outflows.

The retail 'panic' is just a lagging indicator of much larger moves already made by systemic players. This has nothing to do with Bitcoin's internal cycles; its about its ongoing integration into the global financial machine.

[Alphakilo]

You surely would get a headache if you ponder too much upon what volatilities affect the price of Bitcoin, when it is very evident that Bitcoin thrives on speculation and trend movement.
Bitcoin has two cycles of which is the bull season and the bear season which we currently are experiencing.
I think the policies of U.S FED and SEC and some newly enacted ones contribute to the rise and fall of Bitcoin in the market, but beyond that, acceptance and adoption rate has more to do with the price.

[Stalker22]

~

Every market goes up and down with time and its no surprise if Bitcoin price has gone down significantly. We have seen impact of global news and events on other markets like stock and gold. Similarly Bitcoin price is also affected because of global events. We have seen significant increase in price of Bitcoin few months back and its normal practise that market takes correction after ever massive bull run. The current decline in price of Bitcoin is nothing to worry but an opportunity to buy Bitcoin at discounted rates.     

Well, I dont think that its not surprising, at least to anyone who actually pays attention to the charts.  A drop from the $126k peak last year down to the current $69k range is more than a simple correction.  Thats not just a dip, thats a massive wipeout that has changed the whole mood of the market.  No doubt that the market is currently in a bear phase.  But I do agree with you that there is nothing to worry about.  Even with the current volatility, the fact that we have ETFs and major banks involved means Bitcoin has a "floor" it never had before.  It takes guts to stay positive when the charts are red, but thats usually when the best moves are made.