What is possible for the rise and fall of bitcoin these days?

[marcusfe]

The last time I checked, bitcoin was over $37,000 but waking up this morning I realized that bitcoin has suffered a decline of about 15% which have has not been so since few months back. It was postulated before the the rise of bitcoin was as result of the pandemic but I'm surprised seeing it falling even when the pandemic is still very much available.
What exactly is responsible for the rise and fall of crypto currencies especially bitcoin?

 

[Cryptoon]

Nice question @marcusfe. Just like you, many people ask themselves such questions. But the real answer lies in the demand and supply of the coin: the more popular it is, the more people buy it and so its rise in price and vice versa. For this particular circumstance, I believe the pandemic to be responsible, at least partially.

This is because most people haven't been working and so are broke. And those who invested heavily in the coin aren't sure what tomorrow will bring, and so are selling off the coins they bought. All in all this can't be good for all stakeholders involved when the main crypto currency is unstable.

 

[btaliat]

There are many reasons for the rise and fall of cryptocurrencies. The market force of demand and supply play a pivotal role in determining the price of cryptocurrencies. If a coins is popular, there is tendency that the price will be high because a popular coins always call for high demands like wise a newly or unpopular coins demand low patronage.
Also the activities of some business people like Elon Musk or a situation in some countries like the United States of America. All these can determine the activites of the cryptocurrencies.

 

[Finger Geek]

There are many factors that determines the rise and fall of a crypto currency. Factors that determines the rise and fall includes news, popularity, total transactions.
Like in news. If a coin like bitcoin is been mentioned in many news platform and the news is saying good about bitcoin, the price of bitcoin will rise or vise versa.
And if total transactions made on a coin is more than what it us made in previous hour or minutes, the price will also rise or vise versa
For those of us that noticed. Ellon musk twitted bitcoin and the price of bitcoin rose up. This is because it gained more popularity

 

[Peppul]

There are many reasons for the rise and fall of bitcoin, one of the main reasons is that the production o new coins slows down over time. This may create a situation in which the demand for bitcoin grows at a faster rate than the increase in supply that leads to the bitcoin value rise. The number of daily bitcoin issued decreases overtime due to having of block rewards provided by bitcoin miners. 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 inturn, causes bitcoin's price to fall.