I'm not talking about these supposed stablecoins like Tether, but normal coins. Let's say an agreement was made among all the major Bitcoin exchanges. Starting January 1, a Bitcoin is worth $5000 USD, plain and simple, and that's it. The price never goes higher or lower. A Bitcoin is $5000 today, tomorrow, next week, next month, etc. NOTHING changes it. Not a war, not the economy, not Trump getting re-elected (which he will, he's doing a great job), nothing.
I wonder if that could be done and what the effect would be.
One effect is that I wouldn't be buying BTC, because with no price volatility, how could I ever make a profit? But one good thing is that normal companies may be more inclined to use Bitcoin, since its price is now fixed and does not change.
The market forces is responsible for the price movement its dictates how the price moves i.e forces of demand and supply thus locking the price amount to not profitable for trading thus will lead to many exchanges closing down operations.
I understand that the present state of bitcoin in term of the price is bearish however its does mean that its not trade-able you are worried that the price had not pump for a long time and your preference is to having a fixed or stable price without volatility which absolutely not feasible and is counterproductive.
More so fundamental news is another aspect that have high impact on price movement even in stock market eg brexit issues had really affect the price of GBP ie its very unstable now.