Re: Why Bitcoin price is so volatile? What are the major factors that drive it?
Let's just stick with Bitcoin only. Bitcoin have a market cap close to $1T as we speak and, yet, its price is still so volatile. Is it because the availability of bitcoins in the market is low as most people (especially the new institutional investors) are hodling?
Is it fair to compare Bitcoin (or crypto market as a whole) to a stock market like SP 500 (which currently has $31.61 trillion market cap)? If so, Bitcoin cap is only 3% of the SP500. Is it because of its relatively lower market cap which make it easier for its price to be manipulated (i.e., by a pump-and-dump)?
Volatility mainly drives from being unregulated and I still think that it is a good think and not a bad thing, I believe we should probably just accept it as it is because we are profiting from it as well.Is it fair to compare Bitcoin (or crypto market as a whole) to a stock market like SP 500 (which currently has $31.61 trillion market cap)? If so, Bitcoin cap is only 3% of the SP500. Is it because of its relatively lower market cap which make it easier for its price to be manipulated (i.e., by a pump-and-dump)?
I get that people do not like it when it goes down so much so quickly, who would love to see 30% go down that is of course a bad thing for many people but we have also made 5x increase as well so if we didn't had that kind of volatility we couldn't make any profit like this neither. Long story short we are not in a bad situation with these volatile prices, we should see this as an advantage and just focus on buying more and more during drops and smiling during the bull periods
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