What brings fluctuations in the prices of crypto currency

[Planet408]

I'm yet to understand this. I have noticed the rise and fall of crypto currencies almost every day and I began to think about the contributing factors to the rise and fall of cryoto currencies. Kindly share with me, the possible reasons behind this.

 

[Profwriter]

This is a good research topic, something has to be responsible for the sudden rises or fall ofor crypto currencies, although economics can give us a clue to what could be responsible and that is the forces of demand and supply, the higher the demand, the higher the prices and if there is scarcity the price goes even more higher.

 

[Ralphjoe]

Well in my point of view, I think what causes fluctuations in cryptocurrency is caused by the forces of demand and supply. When most investors are selling off their cryptocurrencies, the prices of this cryptocurrencies seems to fall while when most investors are buying and holding their cryptocurrency then the prices of these cryptocurrencies begins to appreciate.

 

[Setho]

I think factors of demand and supply mostly decide rise and fall of bit coin.

 

[Klismannm12]

rise and fall and rise in prices of bitcoins is as a result of the factor of demand and supply when most people are demanding for a deprived institute of $100 women are willing to supply when there are more suppliers and buyers the price automatically comes down but if there are more buyers and suppliers suppliers then it goes up automatically paying out this is the weight of the Earth

 

[Ehizzy1]

I think the fluctuation in crypto currency is caused by the forces of demand and supply and that is why you see that the price rises and falls at same time , so if the price increases to a very large percentage it could fall due to the excess supply instead of demand and vice versa

 

[Kelvin7656]

Bitcoin pricing is influenced by factors such as: the supply of bitcoin and market demand for it, the number of competing cryptocurrencies, and the exchanges it trades on.

 

[tuna89]

There are different factors responsible for the variation in the values of different cryptos, one of those includes the trade volumes, whenever there is an increase in the volume of trade or an increase in the rate at which people use the crypto for different purposes like integrating to their websites and commodities trading, definitely, there would be an increase in the value of the crypto and otherwise.

 

[Damscooguns73]

Concerning what brings fluctuations in the prices of cryptocurrencies. Well, I believe the factors considered to causing fluctuations in the prices of cryptocurrencies is the rate or level of demand and supply, which is also a part of the vital factor to also cconsider in business, the higher the demand the higher the supply and Vice versa

 

[Bkoks]

I believe what brings about fluctuations in crypto currency should be number of investment and number of people withdrawing from it.
whenever there is an increase in the volume of trade or an increase in the rate at which people use the crypto for different purposes like integrating to their websites and commodities trading, definitely, there would be an increase in the value of the crypto and otherwise.

 

[Rimsha kanwal]

• Bitcoin pricing is influenced by factors such as: the supply of bitcoin and market demand for it, the number of competing cryptocurrencies, and the exchanges it trades on.

 

[Veetos12]

I'm yet to understand this. I have noticed the rise and fall of crypto currencies almost every day and I began to think about the contributing factors to the rise and fall of cryoto currencies. Kindly share with me, the possible reasons behind this.

The nature of crytocurrency is known generally to be liquid and volatile which means it is subjected to increase or decrease anytime without a regulated flow trend. Another factor is that it depends on foreign exchange strength per time.

 

[Hasan Raza]

I think the variance in digital cryptocurency is brought about by the powers of demand and supply and that is the reason you see that the cost rises and falls at same time , so if the cost increments to a huge rate it could fall because of the overabundance supply rather than request and the other way around.

 

[Alexandoy]

I am also asking myself about this topic. What really causes the fluctuation in prices of the crypto currency. It is not a real currency, just the name, but in fact it is a commodity, a digital product that is not tangible. So how did the Bitcoin came into existence? And how do the crypto currency multiply? Such questions are related to the rise and fall of the market prices of the crypto currency.

 

[Muhammadawais]

One of the reasons bitcoin fluctuates against fiat currencies is the perceived store of value compared to fiat currency. Wikipedia has features that make it look like gold. The design decision is ruled out by the core technology developers to limit its production to a fixed amount of 21 million BTC.

 

[GIFTMICHAEL]

Cryptocurrency is a digital currency exchange that is never stable. It fluctuate sometimes it will rise and fall. The reason why it is volatile is simply because sometimes the big investors will invest by buy off the coin to themselves and when it is in high demand they will sell in high value to accumulate gains.

 

[Kelly5]

A lot of factors bring about the change and fluctuating in the prices of cryptocurrencies. The simple analogy for it would be what I generally termed as the playing out of the forces of demand and supply. When the demand is high, price goes up. If low it comes down

 

[Tinaconcept]

What a thoughtful question and I will want to learn because when you open cryptocurrency app most especially the trading aspect the way you keep seeing the change of price going up and down, it baffles me but the only thing which I notice is demand and supply playing out
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What a thoughtful question and I will want to learn because when you open cryptocurrency app most especially the trading aspect the way you keep seeing the change of price going up and down, it baffles me but the only thing which I notice is demand and supply playing out

 

[Princeeffiong]

This is a nice question. The thing that brings about fluctuation in the price of crypto currency is the volume of trade that is going on in the market. The number of people buying to the number of people selling in the market. If people decided not to sell, some may decide to hoard their currency.

 

[KingAries]

The demand and supply forces cause the fluctuations in prices of crypto currencies most of the times. One way to affect the prices is to just find a way to affect the demand and supply. Just like the CBN law of banning Crypto trading in Nigeria affected the prices and then the buying big of TESLA in the crypto market has also caused its increase in the most recent days.