Post
Topic
Board Trading Discussion
Re: who actually moves the price of bitcoin?
by
CaVO32
on 27/11/2020, 20:46:16 UTC
Most bitcoin prices are tied to an average or a collection of what the top exchanges publish as the current bitcoin price. But who's actually moving their prices? From my understanding, retail users don't have the power to move prices in the short term. Whales supposedly are the ones who can make the price suddenly jump or drop...but they trade on OTC desks right? not on retail exchanges....so how are these Whale movements being reflected on retail exchanges to determine what the current bitcoin price is? Or are there actually some whales who use the exchanges to trade on?

Whales play a major role toward the movement on the price of bitcoin. Since they own majority of the supply, they may be able to manipulate the market by purchasing/selling their shares depending on their goal (law of supply and demand).

Another factor that contributes to the price movement are consumers and users, in general. Due to bitcoin's limited supply, the more coins are being mined the prices and transaction fees increase on the market. In addition, the government may contribute to the price depending on their prohibition or laws relating to the adoption of cryptocurrencies.

All summed up, it is combination of those factors you mentioned. I don't think there is specific group that can truly influence the market. Unless, those whales will unite and decide what to do with their holdings. But not likely to happen as I don't think they are talking to each other about what to do with their holdings. So in my opinion, it is the fusion of those crypto stakeholders.