Bravosi Posted December 1, 2018 Share Posted December 1, 2018 Hey there community! So I was wondering, since I'm new to the whole Bitcoin (cryptocurrency) scene, how does a cryptocurrency market work? Like what are the reasons for the Bitcoins to go up or down. What determines it? Since it's not a national currency supported by a government or a bank, then clearly it's based off something else. Quote Link to comment https://slingbank.com/forums/topic/1783-what-is-the-reason-of-bitcoin-going-down/ Share on other sites More sharing options...
axl2468 Posted December 1, 2018 Share Posted December 1, 2018 The most basic reason would be the rule of supply vs. demand. Back before 2016, the supply of mined coins were limited. There was also hype surrounding the coin because of its revolutionary decentralized system. So not only was the demand high, but the supply was also relatively low compared to today. And thus, the price skyrocketed as more people invested in bitcoin. Nowadays, the hype has calmed down quite significantly, and that caused a price drop. Not only that, but news about the coin influences the growth of the coin price. If there was news about a national government promoting cryptocurrencies and bitcoin for example, demand rises and that causes the price to go up. Bad news like governments banning or limiting the usage of bitcoin will cause demand to fall and will also cause the price to fall. (One great example of this is when there were news about China planning to ban bitcoins. The price plummeted and a lot of investors lost their money). Quote Link to comment https://slingbank.com/forums/topic/1783-what-is-the-reason-of-bitcoin-going-down/#findComment-2993 Share on other sites More sharing options...
janie1984 Posted December 1, 2018 Share Posted December 1, 2018 It is also affected by what's occuring with other crytocurrencies. For example, in November bitcoin cash spilt into two and currency exchanges warned about trading bitcoin cash SV because it didn't meet their security requirements. Since people started selling off this one type of cryptocurrency it had an effect on others as well, as people worried about how sound of an investment cryptocurrency is. Coupled with the fact that some bank heads aren't fans of the currency whenever backlash occurs, people tend to sell off the coin before they lose even more money creating a downward spiral. Quote Link to comment https://slingbank.com/forums/topic/1783-what-is-the-reason-of-bitcoin-going-down/#findComment-2996 Share on other sites More sharing options...
Martinsx Posted December 3, 2018 Share Posted December 3, 2018 A lot of things are behind the often drop in Bitcoin price but the most perculier one is the activities of government in attacking the cryptocurrency with refusing it's acceptance and approval. Quote Link to comment https://slingbank.com/forums/topic/1783-what-is-the-reason-of-bitcoin-going-down/#findComment-3074 Share on other sites More sharing options...
focusedwriter10 Posted December 3, 2018 Share Posted December 3, 2018 3 hours ago, Martinsx said: A lot of things are behind the often drop in Bitcoin price but the most perculier one is the activities of government in attacking the cryptocurrency with refusing it's acceptance and approval. This is also my bet, plus the amount of Bitcoin mined and owned. In this case, demand and supply rarely affects the prices of Bitcoin. Quote Link to comment https://slingbank.com/forums/topic/1783-what-is-the-reason-of-bitcoin-going-down/#findComment-3075 Share on other sites More sharing options...
nekonieden Posted December 6, 2018 Share Posted December 6, 2018 That's the question I want to ask even before and since I am just new to this cryptocurrency thingy, I am so curious about what's happening in bitcoins as for this time but now I get it but not all even if someone already explained it here as I am still a bit of confuse. Anyway, I hope bitcoins can get back to its track again same thing as before and increase even in the future. Quote Link to comment https://slingbank.com/forums/topic/1783-what-is-the-reason-of-bitcoin-going-down/#findComment-3183 Share on other sites More sharing options...
NerdIndeed Posted December 29, 2018 Share Posted December 29, 2018 It all depends on the law of supply and demand. If you see a downward trend, it means that a lot of people are selling instead of buying that's why prices are dropping. Quote Link to comment https://slingbank.com/forums/topic/1783-what-is-the-reason-of-bitcoin-going-down/#findComment-3565 Share on other sites More sharing options...
Caguioa747 Posted December 29, 2018 Share Posted December 29, 2018 the main reason for bitcoin going down is because of the whales. because they are the ones who are manipulating its price. plus the fork of bitcoin cash that just happened that really affect the price of bitcoin. and also add to the reason is i think also the fall of ethereum. it's like a domino effect Quote Link to comment https://slingbank.com/forums/topic/1783-what-is-the-reason-of-bitcoin-going-down/#findComment-3591 Share on other sites More sharing options...
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