Quote from: tbct_mt2 on September 06, 2020, 07:47:29 AM

Quote from: aiguy on September 04, 2020, 01:47:54 PM

I always wonder How Cryptocurrency rates especially BTC Fluctuate so quickly? I mean is there any system on which there rates are decided? If so, what is it?

Because there are no limits of changes within a day like stock market. There is no circuit breaker for the market to stop panic. Crypto market now is a free one, free of limits, free of circuit breakers. Price can move up or down without any limits.

Price in turn changes fastly because of price manipulation and news. People invest in crypto but most of them don't know what is bitcoin, and what are waiting for them in crypto market. Then when bad news come they panicly sell and good news release they buy with joy of FOMO. They should do opposite as the saying goes "Buy the rumors, sell the news".

This is an important factor when it comes to the volatility of bitcoin, most stock markets cease their operations if they crash too hard in a single day, while this may seem as if it is not a big deal we must remember that markets are dominated by basically two emotions and those are fear and greed, and when fear takes over the markets they collapse, however by closing the market temporarily those fears can be controlled and the price stops falling as fast.

Since bitcoin is a decentralized currency not such breaks exist, if panic takes over the market then all bets are off which is why the price can go down so rapidly as people panic and sell their coins at whatever price the can get.