What is behind the massive rise and fall of Bitcoin??

[Shigobad2020]

Most analysts believe that the Covid-hit year is responsible for the revival and meteoric rise of the digital currency. Many Bitcoin investors have said that the pandemic-hit year offered a perfect environment for the cryptocurrency.
Analysts believe there has been a growing acceptance for the digital currency in the current year as traditional currencies and assets took a pounding due to the global economic crisis. Bitcoin’s valuation has also soared as many big brand investors and companies have also stockpiled the digital currency.

 

[unhappy triad]

I don't know too. Seems there are market forces controlling it. Like increase in interest may contribute to the rise but what do I know.
Maybe people trade less sometimes and then like other stocks the value falls.
A clearer picture from someone here who is an expert in trade will do a lot in helping us get the right picture.
Where are our geniuses?

 

[Sarfraz Ali123]

I think Bitcoin has several flaws that make it not usable as a currency long term. One of them is the low throughput (like 10 transactions per second), which off-chain scaling solutions won’t solve in all user cases. The second one is a limited supply that makes people storing BTC rather than using them for services. This is ok for an asset, but not so for currency.Short term, Bitcoin will rise higher probably. Maybe some developments from other currencies will land into its chain and it will fix the problems.

 

[Abbas ali]

Generally, whenever a large amount of bitcoin is sold on the market, it drags the price down. ... Since authorities aren't in the business of maximizing trade profits, large amounts of Bitcoin are sold below the market price. This, in turn, causes Bitcoin's price to fall.

 

[Patrik]

it's about the deposits and withdrawals, once huge investors invest lot of their money and store it as bitcoin, the price surely jumps and increases, and when lot of people withdraw huge amounts of their bitcoin, price drops

 

[Jomarie05]

Crypto currency rise or fall so might suggestions might not be correct. I think the rise and fall of bitcoin is as a result of market demand and supply. During the first wave of covid-19 bitcoin gained a massive rise which might be due to the fact the lock down order by all the he countries of the world was very effective and strict.

 

[singlej007]

The rise and fall in bitcoin has to do with fake news, yes most is cost by fud, there is a lot of fud in the crypto industry and that's is what is coursing too much fluctuation in the value, demand can also cause rise and fall of bitcoin price, news also cause fluctuations of price.

 

[Emma Aneni]

expand...Well, to my own knowledge and understanding. I think the greatest determinant for the price of bitcoin is the interplay of demand and supply. Few days ago, it was very low, and some days after it was high.

 

[Briangsam]

Firstly, we have to acknowledge the fickle nature of cryptocurrency. Its fickleness could be as a result of miners processing transaction blocks intermittently, so new Bitcoins are added to the market. With time, the production of new coins slows down over time. So the supply grows static which forces demand to go high.

 

[Talibhussain074]

Today i felt so perplexed to see Bitcoin taking toll on another free fall. 12 hours ago, i saw the coin on an improvement going high to $37k. I checked back this morning at coinmarketcap to see the price dip down, back to the previous $33k. Dropping almost 14% in its price value.

What is really behind this steady up and down of Bitcoin price??

according to my knowledge the price of any cryptocurrency depending upon market price over circulating supply so when the market cap of Bitcoin increases the price of Bitcoin definitely increases the only reason behind this is market cap.

 

[Hasan Raza]

Cryptocurrencies have witnessed a massive fall in prices since they hit a peak in December last year. Bitcoin, by far the most popular cryptocurrency on the planet, is currently trading below $7,000 as compared to its peak price of over $19,000 — a loss of two-thirds of its value from the peak. Other cryptocurrencies have witnessed a similar steep fall in their prices over the last quarter as investors have pulled out of the market. Remarkably, the present crash follows a year of extraordinary returns when cryptocurrencies saw their prices rise multifold owing to investors’ expectations over their future prospects.

 

[ansahweh]

There are many factors that influence the rise and fall of bitcoin. Things like information, news and popularity of a coin are some of those factors. The major thing to look out for is news because news affect almost everything even the economy.

 

[Jlife]

The law of demand and supply is a thing that governs all cryptocurrency system and sometimes I do always believe that the price of cryptocurrency can somehow be manipulated by big companies that are investing in cryptocurrency but I don't know genuine the information I'm saying is.

 

[Henrywrites]

Today i felt so perplexed to see Bitcoin taking toll on another free fall. 12 hours ago, i saw the coin on an improvement going high to $37k. I checked back this morning at coinmarketcap to see the price dip down, back to the previous $33k. Dropping almost 14% in its price value.

What is really behind this steady up and down of Bitcoin price??

It's simply the power of demand and supply. Just take a look at how some of these price drops happen and you will get the point. Some big investors either buy or sell at particular days and such move always affect the price of Bitcoin.

 

[Dorcey]

As of December 16, Bitcoin has increased by about 195% year-to-date, topping $23,000, but what is driving this meteoric rise? The reasons for its appreciation vary, but Bitcoin has grown from what was once considered a scam by many into something that has matured into a viable investment made by famous billionaire investors, large institutions, and retail investors alike. Why are these investors so bullish on Bitcoin even after it has surpassed all-time highs?

 

[Chumzy]

The economy of the advanced countries somehow play a part in that. But primarily there should be the demand and the supply factor affecting the price. The rise is only natural with excess demand and the fall is only normal to excess sellers.

 

[redpogi16]

Most traders pay close attention to major exchange prices. Buyers want to pay as little as possible for their Bitcoin. Sellers want to sell Bitcoin for as much as possible. But, there is no such thing as a ‘stable’ or ‘fair’ price for Bitcoin.

When people talk about the price on a certain exchange, they mean the most recent “tick” price updated on a specific exchange. Because exchanges are not connected, price determination varies between each exchange.

The methods used to determine the price of bitcoin on each exchange varies by many different factors, including:

1. The volume and quality of the trading data used.
2. The weighted volume of each “fiat” invested in BTC.
3. Supply, demand, sentiment, and behavior of its users.

 

[Chibson]

Bitcoin and cryptocurrency generally is very volatile. A coin that is 37 thousand dollars today, may drop to even $20000 tomorrow. Even though, I don't actually know the cause of volatility of cryptocurrencies but from my little knowledge, it is because of high sell or buying of that cryptocurrency.

 

[Famok]

It goes with out announcing that there are many factors affecting the upward push and fall of Bitcoin's price, the first digital currency of its type, which derives its charge from a hard and fast, deflationary supply and fluctuating and cyclical call for.

 

[arrain3786]

Cryptocurrencies have witnessed a massive fall in prices since they hit a peak in December last year. Bitcoin, by far the most popular cryptocurrency on the planet, is currently trading below $7,000 as compared to its peak price of over $19,000 — a loss of two-thirds of its value from the peak. Other cryptocurrencies have witnessed a similar steep fall in their prices over the last quarter as investors have pulled out of the market. Remarkably, the present crash follows a year of extraordinary returns when cryptocurrencies saw their prices rise multifold owing to investors’ expectations over their future prospects.