Post
Topic
Board Bitcoin Discussion
Re: Why does Bitcoin Fluctuate so much?
by
P2PECS
on 30/07/2022, 13:49:01 UTC
The main reason for the fluctuation in the price of bitcoin is its small market size and spectators want to get rich overnight which is a big reason.
I did a quick search for the different trillion dollar market companies available, and took a look at their last 1 year charts, just for experimental purposes;
1. Apple; over the last year, it has fluctuated between $182.01 and $130.06, which is a 28.6% change.
2. Microsoft; $342.54 and $242.26, a change of 29.3%
3. Amazon; $184.80 to $102.31, a change of 44.6%

Bitcoin has had a peak of $67,617 and a low of $19,047 on coingecko, this leads to a change of 71.8%

Bitcoin's volatility is obviously higher, but it is not very far off from those multi trillion dollar markets, considering that it is still just about 13 years old, and this past year it reached a new ATH. The difference is much smaller when you consider the YTD figures.

You have mentioned 3 tech stocks, whose behavior is more similar to that of BTC than other more industrial stocks, such as KO (The Coca-Cola Company), whose variation in the last year has been 12% (positive).

As BTC becomes more established and the price and market cap continue to grow, volatility will decrease. That, at least, is to be expected.