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Low in demand of Bitcoin would cause a price decline

  • Thread starter Thread starter Potuse
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Potuse

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The Bitcoin is driven by demand and supply and low in demand of Bitcoin actually makes the price to decline . The more the demand for bitcoin drops, there's going to be a decline in price accordingly in response to the low in demand.
 
Reduced demand for Bitcoin might result in a drop in its price. There is usually less demand for oil and petroleum during times of economic slowdown, which can result in a drop in prices. Likewise, if there is less desire for Bitcoin, it might result in a drop in its price.
 
This is logical, all assets move by supply and demand, if demand falls excessively sooner or later there will be a decrease in the price of the asset, since fewer people are buying it or want to buy it, Bitcoin is not saved from this and being so scarce is a very sensitive asset to the entry of liquidity, or on the other hand, liquidity outflow of the asset
 
Accordint to the small knowledge I havae when it comes to BTC, I was made to understand that reduction would cause an increase in value of btc rather than reduction, but I am still learning though.
 
akinlolu99 said:
Accordint to the small knowledge I havae when it comes to BTC, I was made to understand that reduction would cause an increase in value of btc rather than reduction, but I am still learning though.
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I think you are referring to the effect of halving, which is the reduction of BTC that are issued every 10 minutes, and that miners receive as a reward, that has nothing to do with demand, since the effect of halving occurs directly in the supply, which makes Bitcoin scarcer and does not influence demand in this case.
 
riberet19 said:
I think you are referring to the effect of halving, which is the reduction of BTC that are issued every 10 minutes, and that miners receive as a reward, that has nothing to do with demand, since the effect of halving occurs directly in the supply, which makes Bitcoin scarcer and does not influence demand in this case.
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Okay thank you for clearing that up for me because yes I was referring to housing I just wasn't sure if you was to be referring to having but in response to what you said if it's just about demand I think the more people demand for BTC for any form of transaction the higher the value
 
The price of bitcoin, and cryptocurrency in general does not only depend on demand and supply. It is depended on a lot of things. Crypto price is depended on stock market as wll, when stick market performs well, crypto also performs well. Crypto price is also depended on governments policy and world political order.
 
Potuse said:
The Bitcoin is driven by demand and supply and low in demand of Bitcoin actually makes the price to decline . The more the demand for bitcoin drops, there's going to be a decline in price accordingly in response to the low in demand.
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It is very correct that the forces of demand and supply also plays a very big role in the price movement of Bitcoin and other cryptocurrencies but also news and events that have huge impact on the economies of the States also influence the price movement of cryptocurrency as well.
 
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