Post
Topic
Board Speculation
Re: Why is Bitcoin Price So Fluctuating?
by
HabBear
on 06/10/2017, 20:30:24 UTC
Hopefully I don't come across as an ass here, but misinformation is dangerous. This quote below is 100% incorrect.

the market cap is too small

as the market cap grows, it will take much more to move the price

Market capitalization (market cap) is not a driver of price fluctuations. Price is a driver of market capitalization. Market capitalization is simply the size of the value of the currency (or stock, etc.)

Market Cap = the number of shares (or coins) outstanding x the price per share (or coin)

Any thoughts that market cap size influences price volatility is really a hunch (just a hunch) that investor behavior is influenced by the price of the stock/currency. If that hunch is correct it's not the market cap that's driving behavior but the price per stock/coin.