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Bitcoin Price: Who sets the Bitcoin price? Why is Bitcoin Going Down / Up?

2019-12-20 14:42:31

In this article we will talk about Precio de Bitcoin and among everything we will deal specifically with what determines the price of Bitcoin?

There are aspects that we all want to know in relation to Precio de Bitcoin today is the topic of greatest interest in the current situation of this market, this article will cover the different variants that can become determinants and we will know specifically What determines the price of Bitcoin?

What may be the rise and fall of Precio de Bitcoin

We can say that the question we are currently asking about this market is what determines the price of Bitcoin? And before we get to this, let's see what this situation may be, according to the last operation that will be carried out in a specific stock exchange, it will be the Bitcoin Price indicator, since there is an increase in the purchase pressure the cost goes up and on the contrary This will decrease with increasing sales pressure, there are some factors that certainly become influential and these are:

  • - Institutional adoption
  • - Shortage of supply
  • - Adaumping of coins in the market
  • - Loss of confidence in fiat currencies
  • - Loss of confidence in fiat currencies

What is the price of Bitcoin?

For many of us talking about the Bitcoin Price is the price in dollars which is led by a bag, being Bitfinex, Binance or Bitstamp, or it can also be composed of several bags the price and an example is CoinGecko, when talking about prices of a specific bag is going to be related to the last operation of that particular bag, we give an example, we have that in Bitstamp the price is $ 10,000, it means that this will be the indication of your last transaction, when starting a new day It will be updated, so there are many things in doubt as What determines the price of Bitcoin?

Bitcoin does not have a single price, due to the fact that it is an asset that continues to be quoted in an endless number of exchanges and people around the world, the price of Bitcoin is different in each exchange, certainly similar.

  • · Price index

Our goal is to know what determines the price of Bitcoin? And that is why there is a lot of content to explore that we must take into account, the Price Index indicates that since there is no official price for Bitcoin, there are some companies that place a composite index price, which consists of the weighted calculation of the certain currencies by volume and an average when combined, an example of this Coindesk Bitcoin and its price index, are somehow representing the prices of the currencies in the main world exchanges, which have certain criteria.

They can be a useful mechanism in terms of pricing, since to note the smoothness of the effects that may have a commercial activity, we have for example that there is a merchant who wants to sell 25,000 BTC in Bitfinex, which is to happen is that in this bag it will be deleted and it will take some time for it to recover according to the existing international average price, the index here will show less.

What determines the price of Bitcoin?

It is a process where buyers and sellers are gathered in a crypto exchange and they reach an agreement based on the price at which they will operate, for buyers it is normal to want to pay less for their Bitcoin and sellers sell as much as possible, before any operation both parties must be committed to a price, to know more things in relation to What determines the price of Bitcoin? It will be enough to follow the content until the end.

  • ·         Order backlog

What determines the price of Bitcoin? In the order book, known as the order book, the operations interface of the standard crypto exchanges, we are talking about a page where the market information is presented, related to the purchase and sale with the executions of the Orders, in the case of the purchase, are currently offers for the purchase of Bitcoin at a certain price, which is known as bids and in the part of the sale are offers to sell Bitcoin at a certain price and It is known as asks, it is normally possible that recent operations can be displayed in a list and / or graphs, in the BitcoinWisdow.com interface it is possible to notice the portfolio of real-time orders for BitStamp.

Being the central axis of the entire Precio de Bitcoin, we have that the questions will be in the upper right, indicating the price desired by the sellers in terms of their currency and in the Bitstamp order book are additional requests, only that the last price will be the most visible and then there will be the bids that show the price and the currencies that buyers want.

We have at the bottom the history of the operations, where are the amount of currencies that were traded and at what price, where the most recent is responsible for setting the last Bitcoin Price on the stock exchange, the operations are those that can cause the changes

  • · Manufacturers and Takers

Despite being long the road we see what determines the price of Bitcoin? In this case, with more buyers than sellers or vice versa, the movements of Precio de Bitcoin are sometimes explained only that in practice this cannot be possible, since there must be two parties to a negotiation, the incident factor that the price rises or lower will be the side that is more aggressive, we talk about the spread which refers to the difference between the best offer and the best for sale, an example is that the best purchase offer is 9350 dollars and the sale is 9400 dollars, where 50 dollars is the differential.

One of the two parts according to the motivation you have will be the one that will cover the differential of the 50 dollars to execute this operation instantly, which is defined as the policyholder, since the offer is accepted as contained in the manufacturer's order book, If the price for some merchants deduces that it will reach $ 10,000 for Friday, they will work as buyers.

They think that buying less than $ 10,000 will bring them benefits, being more prone to spread payment and thus buying all the currencies on offer at $ 9400, which will give them the account of $ 600 minus the $ 50 of the spread, when they already These have all the coins at $ 9400, the Bitcoin Price increases to $ 9450 and so on.

When the sellers notice aggressiveness in the purchases they choose to increase the prices of their orders, until the pressure that exists of purchase decreases, which will now reverse the process, impulses that will cause low or high, this happens in all the bags, Noting the synchronization between the exchanges of Bitcoin arbitration, a strategy in the direction of taking advantage of price differences.

In Bitstamp for example the price is cheaper and expensive in Coinbase, therefore the merchants go for the cheapest option and sell in the one that is more expensive, the price alignment is thanks to the effects of arbitration. Do not stop that there is much more to know What determines the price of Bitcoin?

  • · Main bags

For the main exchanges, what determines the price of Bitcoin? Its effect is on those with the highest volume, which means the largest amount of currency traded, leads to be recognized with the official price, an example of this is if the Precio de Bitcoin It is increased in Bitfinex, Binance or Bitstamp and in many more important, worldwide this causes in impact, this is because the greatest interest is in the most influential exchanges.

The filtration of the prices that the main exchanges have towards the smaller ones, for the operators is of great expectation, due to the effect of arbitration and the belief that it represents for other operators, the exchanges that use different currencies also go through this exchange effect, An example of this case is that if in Japan a high-volume country, the Bitcoin Price is in JPY and if it falls below international costs, this will cause an impact on those reflected in dollars, euros and others. .

Why the fall of Precio de Bitcoin

Already having up to this point some knowledge regarding the Bitcoin Price let's see some events that come in response to What determines the price of Bitcoin ?:

  • · Nearly Maximum Price

When approaching the recent historical maximum, it will be reaching the price resistance and the previous maximum does not reach, because there are many operators where the orders that they place of sale, are close to the historical maximums, when arriving at this point the selling pressure manages to make it go down.

  • · FUD media

What determines the price of Bitcoin? The FUD can be one of these determinants, the meaning is Fear, Uncertainty and Doubt, this is due to some negative news towards Bitcoin, example of this is the times that they have killed this, causing massive panic and thus increase the pressure of When people lose faith, many of the media speak baseless, so you don't have to fall for these games.

  • · Dumping of coins in the market

The large quantities that can be sold of Bitcoins in the market, brings down and this due to the increase in sales pressure, example if an amount of this currency is seized by the FBI or some authority in illegal things, these currencies auctioned to the general public, which is done below the existing prices in the market and the effect here will be that the Precio de Bitcoin falls thanks to the winner because it places some of the coins won in the bags to sell, we are seeing the variant path that exist to answer us What determines the price of Bitcoin?

Why does the price of Bitcoin rise?

In direct response to What determines the price of Bitcoin? Keep in mind that there are also events such as buying pressure that lead to the increase in Bitcoin price and some of these are the following:

  • · Crossing an ATH

When the maximum historical level is exceeded, a positive impulse of purchase is generated causing the price increase, also if it becomes very abrupt the impulse of purchase also comes in turn to come with a strong fall, called by many experts correction, by What if we are in this situation we must take action before this effect can occur.

  • · Media coverage / Advertising

We talk about media coverage as one of the key answers to What determines the price of Bitcoin? Advertising can affect the increase in buying pressure, in 2017 this situation was experienced, where the price reached almost 20,000 dollars, the bitcoin issue appeared in the news almost every day, which caused an adoption , interest and speculation on the part of the people, referring to a saying which is rumor buy, sell news, this should be an alarm signal to be prevented, be cautious with the Bitcoin Price, from one moment to another it goes to reach the correction, which initially causes the price rise as the media, in turn causes a collapse and comes the rapid recovery.

  • · Loss of confidence in Fiat

The loss of confidence in traditional fiat currencies in many years was the cause of the rise of Precio de Bitcoin, not believing in the currency itself or inflation, banking system, other possible options are sought outside government or bank controls, we talk about Popular solutions such as bitcoin and gold, a perfect example is the bail of Cyprus in 2013 during the crisis, India of 2016 for demonetization and in Argentina 2019 the fall of the peso and this if it enters the answers of our question What determines Bitcoin price?

  • · Adoption

When Bitcoin is accepted by a retailer or financial institutions, it gives more importance to the market, which can lead to the increase of Precio de Bitcoin due to the possible speculation of a possible mass adoption, another factor What determines the price of Bitcoin? It is the approval of instruments such as ETFs and future bitcoin, they are financial means that allow banks, hedge funds etc ... the investment in this currency without obtaining the currency, for many in the world this currency is treated as a legitimate investment, which sooner or later increases the buying pressure by investing the general public.

  • · Supply shortage

Perhaps the last answer in this article we can have to What determines the price of Bitcoin? It is the shortage of supply, we are talking about the lack of supply, 85 percent of the amount of bitcoins available has already been extracted, which is limited to 21 million, certainly today there are 12.5 for every 10 minutes, but it is This amount is halved every 4 years, the next reduction is for June 2020 and this will cause a possible downgrade in the price of Bitcoin in half.

What are the frequently asked questions?

There are many questions to answer that most of us can keep in mind, in this article we largely answer What determines the price of Bitcoin? And now we have an additional one being this:

  • · Why does the Precio de Bitcoin fluctuate

The Bitcoin Price is volatile, on the same day it will be normal to find prices of 5 percent or 10 percent, it is due to how small the Bitcoin stock market is, we have that the market capitalization = number of bitcoins in circulation * Price per Bitcoin , which leads to the fact that the stock market value of an asset will generally be lower, will be the highest volatility, is due to the daily purchase and sale orders, if the Bitcoin Price increases its stock market increases and gradually decreases the price movement.

So we have some ideas that answered our question and especially based article is What determines the price of Bitcoin?

We have finished our Bitcoin Price article and in which we specifically talk about What determines the price of Bitcoin? Therefore, we hope that you will find in this content what is necessary to answer your questions.

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