HashFlare
Sign in to follow this  
Carmela Tim

3 Factors that Cause Bitcoin Price Swings

Recommended Posts

Increasingly, retail investors are diversifying their assets by investing in cryptocurrencies such as bitcoin and ethereum. However, many investors express confusion at the sometimes-inexplicable bitcoin price swings that occur on a day-to-day basis.

1. Regulatory Factors
2. Media Attention
3. Professional Day Trading

SOURCE: http://strategiccoin.com/3-factors-that-cause-bitcoin-price-swings/

Share this post


Link to post
Share on other sites

You're only stating demand factors. The flip side of the coin (pun intended), the supply side, is driven directly by the amount of individuals mining. The amount of individuals verifying the block-chain is essentially the backing of the currency, that is if you want to gain a sense of the long-run forces/trends driving the price of bitcoin, or any other coin, you need to forecast the tradeoff/incentives for miners; where the tradeoff for miners is the reward/cost(GPUs, electricity, bandwidth etc.) they are facing for each coin they mine. 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Sign in to follow this