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.

[ScamViruS]

~~~

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

Smart money enters the market in a smart way that is not easily noticed unless we see any impact on the market due to their silent buying. The market often creates many types of opportunities which are often not understood by ordinary traders, resulting in only a few traders being profitable in the market. We need to keep an eye on whether smart money is entering the market, as the market trend could change at any time.

[JiiBs]

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.

Indeed, these news does have a way to affect how individual investors respond to the market which would in turn create various conditions that we see play out in the market as, people would either buy more or sell more creating a demand and supply pressure that instills various curves on the charts.
That’s why many have accused Trump of having to influence Bitcoin with his tweets but in the main sense, it is we the people that takes his tweet rather seriously to create the conditions that plays out in the market. Whales alone or institutional investors can’t create these conditions until they are backed up by individual investors responses.

[Uhwuchukwu53]

Just like other market, determinant of fluctuations or price instability which we called rise and fall is centered on demand and supply, the daily market active the numbers of buyers and sellers and numbers of those whose motive is to hold and some short time all in combination has impact on the rise and falling of Bitcoin price. But inevitable factor is the supply chain and the demand all other factors may act as addictive.

[Noobguy]

People is responsible. 

Some days, more people want to buy Bitcoin. Maybe institutions enter the market, maybe there’s good news, maybe people lose trust in fiat currency. When more buyers come in and supply is limited, the price goes up.

Other times, people sell. Maybe they are taking profit, maybe they are scared because of news, maybe the economy is unstable. When more people sell than buy, the price drops.

So the fluctuation is not programmed directly. The program only controls the supply. The price itself is decided by human behavior, market psychology, and simple supply and demand.

In reality, Bitcoin is traded in an open market, just like gold or stocks. Nobody controls the price. It moves based on what buyers and sellers agree on at that moment.

[asriloni]

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 is a commodity. It has demand and supply. So it's the reason why its price fluctuates. People buy and sell in the various price, which create the up and down in the Bitcoin price. It's not a program or anything like this, it's pure the nature of market.

When demand meets supply, there will be a price discovery to happen in order to meet the equilibrium from sellers and buyers. So it create price fluctuation.

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?

Just don't complicated yourself. It's a part of market cycle, it's not a program or conspiracy theory like what you expected. More demand less supply, price growth. Less demand more supply, price down. It's simple as that.

[Kuchuku]

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?

This fluctuation occurs due to supply and demand in Bitcoin. The fluctuation of Bitcoin price is not done through a specific plan, it is a matter of demand. Because the higher the demand, the higher the price will be and the lower the price will be. Bitcoin is inherently volatile and its price can fluctuate at any time. Fiat is fundamentally different from Bitcoin and the fluctuation of fiat tends to be negative which leads to depreciation over time. The price of Bitcoin is determined by the market. When there is good news in Bitcoin, the demand increases and thus the price continues to increase.

[abaeze]

The fluctuation of Bitcoin price depends on its market cap, that is, how much money has entered the crypto market with all Bitcoins.The more people buy Bitcoin, the more demand for Bitcoin will increase and the total amount of money in the market will increase along with the price, and this entire market is the market cap. On the other hand, the more people sell, the total money from the market cap will decrease and the price will also decrease.

This is how the price of Bitcoin fluctuates. And this is the main reason for fluctuation. So many times, the sale of Bitcoin by big companies has a huge impact on the market and creates a red market. In the same way, the purchase and holding of Bitcoin by companies creates a bull market in the market. This is how the price of Bitcoin keeps falling and rising.

[AmoreJaz]

Just like other market, determinant of fluctuations or price instability which we called rise and fall is centered on demand and supply, the daily market active the numbers of buyers and sellers and numbers of those whose motive is to hold and some short time all in combination has impact on the rise and falling of Bitcoin price. But inevitable factor is the supply chain and the demand all other factors may act as addictive.

That's basically the reason of up and down movement in any market. And there will be contributing factors that come with it, and you can't pinpoint which one. So it is like the combination of several events happening in crypto market right now. As you have no control as to what may happen next, what you can do is observe and try to take advantage of the possible opportunity it may bring to your assets.
Also, be cautious of what is surrounding the market, keep your eyes open. Also, you can follow the news and see what's brewing. You can already get some insights and maybe, use it to handle your assets that will make it more profitable later on. Because there are a lot of way how to earn profit in this market, whether we are in bearish or bullish mode of market.