Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Hazel Tucker

Who decides the price of Bitcoin?

Recommended Posts

I am new to the world of bitcoins and cryptocurrency and this question hit my mind recently.

Bitcoins are gaining popularity at a faster pace but will anybody make it clear to me that who decides the price of these bitcoins?

Share this post


Link to post
Share on other sites

Hazel,

It’s the same with crytos as with any market - the next price change is determined by the most motivated participant(s).  When motivated buyer(s) take the ask, price up ticks and the ask is moved higher.  When motivated seller(s) accept the bid, price down ticks and the bid is moved lower.   Whether in slow increments or sudden crescendos, that how all prices move / are “decided”.   

hth

Share this post


Link to post
Share on other sites
On ‎25‎/‎07‎/‎2018 at 3:20 PM, zdo said:

Hazel,

It’s the same with crytos as with any market - the next price change is determined by the most motivated participant(s).  When motivated buyer(s) take the ask, price up ticks and the ask is moved higher.  When motivated seller(s) accept the bid, price down ticks and the bid is moved lower.   Whether in slow increments or sudden crescendos, that how all prices move / are “decided”.   

hth

thanks for explanation. It makes a lot of sense.

will bitcoin can experience any bankruptcy ?

If so, how it can happen and how it can affect investors ?

Edited by BullFX

Share this post


Link to post
Share on other sites

BullFX

BTC itself could 'experience' a 'bankruptcy'... either suddenly or gradually

Suddenly could come by blockchain suddenly being digitally totally and completely corrupted beyond recovery. Not possible?  Some things to consider :  hackers esp those state 'sponsored' (think nsa, etc) can infect any and all connected devices at will and at once...  and 'norton' wouldn't help you one bit... more likely they would be complicit...

Gradually could come as the economics of the model gradually sink in... blockchain transactions are viciously expensive and slow, the whole process of 'mining' is an energy heavy lottery, etc etc.,  plus BTC can now be tracked and taxed, etc, etc... ie the initial features and benefits of BTC get gradually chipped away

Either suddenly or gradually could come with grid down, etc etc... countless hodlers don't even have their certificates on hard copy...

still - BTC is a good 'trade' vehicle ... esp now that there are instruments amenable to shorting it...  esp if you like high price variability (more commonly and incorrectly known as volatility)

The only 'investors'  in BTC are miners.  All other participants are 'traders'.  BTC selling below mining costs and 'investors' are  gone.  BTC selling significantly below where individual traders bought and they abandon the trade and the instrument...

have a great day,

capt obvious

Share this post


Link to post
Share on other sites

Markets shouldn't be selling off on the ETF news overnight because we told it would be pushed back to the end of September a few weeks ago

I have a theory. The long term whales are selling to destroy the media price manipulation. I think the Bloomberg crypto team take personal positions then try and move the market in their favour through their tweets. Whales have caught on an are destroying their trades. Bloomberg crypto tweet in clumps and often post the same tweet again a few days later.

Share this post


Link to post
Share on other sites
On 7/19/2018 at 2:43 PM, Hazel Tucker said:

I am new to the world of bitcoins and cryptocurrency and this question hit my mind recently.

Bitcoins are gaining popularity at a faster pace but will anybody make it clear to me that who decides the price of these bitcoins?

Exchange, supply and demand on them and of course arbitrage between exchanges and starting from recently derivative instruments like CFDs on bitmex 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Similar Content

    • By ridhuanuzz
      Here are some trading courses that I know they have experienced trader as a teacher:
      - Stock Trading & Investing for Beginners by Udemy
      - Consistent Profits from Stocks With AI Assistance In Just 10 Minutes a Day! by Snap Academy
      - Trend Following For Stocks by Decodingmarkets
       
      Give me advice which one is the best to join?
    • By sergio
      Hi,
      We are doing a university job where we must investigate how banks manage their financial products that require trading, for example, they offer a fund, as they manage capital internally. Could you help me?
      Thank you!
    • By millonmethod
      Hello everyone!
      I am an advanced trader, with many years of experience (about 15 years - 10 living exclusively from this)
      I am going to give you some tips that you must know:
      There are going to be many people who tell you that trade is easy, that with only crossiing a line  with another one you will win a lot of money.... and that´s not true.  No, Sir, reality is far away from that. Many people who start arrive here with the hope that someone "gives them" a free method, they watch youtube videos thinking that this will give them the "strategy" and in a few days they realize that it does not work for them - they lose money - and then They go looking for a new one ... and so on. YES, IT´S TRUE YOU EARN IN TRADING, A LOT. BUT THINK: for a few to win (10% + any BROKER) many others must lose (90% people). YOU MUST HAVE A MONEY MANAGMENT FORMULA ( you can email me) People study so many years to live on this, not because they are dumb, but to know what they do, when, and have absolute effectiveness. It´s very easy to get lost here: do not disperse, jumping from one to another strategy WILL NEVER give you money, it will only waste your time and make you nervous when trading. PEOPLE WHO CHANGE THEIR METHOD CONSTANTLY : LOOOOSE ALWAYS.   If you have the knowledge to develop it, take your time and do it.  Always try it first on DEMO for at least 2 weeks! If not: search to buy a solid strategy (no you tube videos pleassse ! Avoid losing money! ) This is like any business, it requires some capital to start (capital = money in the broker + solid made /purchased strategy) If you are lost: I RECOMMEND YOU NOT TO WASTE TIME IN YOUTUBE, JOIN PEOPLE WHO HAVE EXPERIENCE AND IF YOU ARE GOING TO BUY A METHOD ... PLEASE !!!! DO NOT BUY 10 BAD AND CHEAP METHODS, SAVE MONEY AND BUY ONLY 1 BUT EXCLUSIVE AND MUST ALLWAYS HAVE SUPPORT !!!!!  Do not buy Signals! They never keep up with constant profits! One week will win and the next will lose. Nothing that does not depend absolutely on you will give you the money you are looking for. And if you do not have a strategy (made or purchased) do not even try PLEASE PLEASE PLEASE: DO NOT USE REAL MONEY! AT LEAST 2 WEEK DEMO FREE HELP HERE!!!!!  IF YOU FOLLOW MY ADVICE YOU WILL BE PART OF THAT 10% WINNER, email me.
      Have a nice trading day
       
       
    • By Georgebro8
      So I've been 18 for about 4 months, since I turned 18 I started up an account, and basically thought I was doing amazing because of beginners luck, put in some of my savings and managed to do well, some days I would make £200, one day I even made £900, after time I lost my profits and made a loss as well. I've realised I need to spend the time analysing the market and making technical judgments. I'm trying to read more and spend a lot of my time looking at the charts. is there any advice people can give me. and is making 5% a week a realistic goal to set myself? before anyone assumes that im looking for a get rich quick scheme, im certainly not, I see every loss ive made as a lesson and ensure that I learn from each mistake I make. 
      any advice about indicators, strategies, how to analyse the market, or even analysing earning reports would help me.
  • Topics

  • Posts

    • Date : 30th November 2020. Events to Look Out for This Week.Europe and US are in the middle of a second wave of Covid-19 infections. The prospect of another hit to the economy in Q4 and emerging lockdown disruptions.still leaves central banks and fiscal authorities in crisis mode, but positive news on the vaccine front leaves investors looking ahead to the recovery. Next week’s focus will remain on the virus, Brexit as the latest and supposedly final deadline, is next Tuesday, OPEC+ group which will also decide on extending prevailing quota restrictions next Tuesday, and on the Non-Farm Payroll outcome. Monday – 30 November 2020   Eurogroup Meeting Non-Manufacturing PMI (CNY, GMT 01:00) – The Non-manufacturing PMI is expected to slowdown to 52.1 from 56.2 in October. Harmonized Index of Consumer Prices (EUR, GMT 13:00) – The German HICP preliminary inflation for November is anticipated to remain unchanged at -0.5% y/y. Pending Home Sales (USD, GMT 15:00) – Pending home sales experienced a minor decline at -2.2% in September after four consecutive months of contract activity growth/ For October we could further decline to -2.6%. Tuesday – 01 December 2020   RBA Rate Statement & Interest Rate (AUD, GMT 03:30) – In the last meeting, RBA stepped up stimulus to ensure recovery by announcing a package of measures designed to secure a rapid recovery from the crisis now that lockdowns have lifted. RBA’s Lowe also stated that he sees no appetite to go into negative rates. The central bank head send a pretty clear signal that the focus now has shifted to asset purchases, with no appetite at the central bank to move into negative rate territory. Consumer Price Index (EUR, GMT 10:00) – Preliminary November inflation expected to remain unchanged at -0.3% y/y in the final reading for September, unchanged from the preliminary release. Core inflation meanwhile declined to 0.2% y/y and while special factors are playing a role, officials clearly are increasingly concerned that the prolonged period of underinflation and now negative headline rates will prompt a more lasting shift in price expectations, which against the background of a sizeable output gap and rising unemployment lifts the risk of real deflation down the line. Gross Domestic Product (CAD, GMT 13:30) – Canada GDP results for the Q3 are seen to be slowing down, at a yearly rate of -39.6% compared to 38.7% last month. ISM Manufacturing PMI (USD, GMT 15:00) – US manufacturing PMI is expected to fall to 57.5 in November from a 2-year high of 59.3 in October. We’re seeing a modest November pull-back in available producer sentiment measures to still-elevated levels, as output is continuing to rise in the face of plunging inventories and rising sales, with limited headwinds from delayed stimulus and continued virus outbreaks. Fed’s Governor Powell testimony (USD, GMT 15:00) Wednesday – 02 December 2020   RBA’s Governor Lowe speech (AUD, GMT 00:00) Gross Domestic Product (AUD, GMT 00:30) – GDP is the economy’s most important figure. Q3 GDP is expected to confirm slowdown to -7.8% q/q and -7.2% y/y. Retail Sales (EUR, GMT 07:00) – German sales are anticipated to have fallen slightly to -0.8% in October, compared to -2.2% m/m in September. ADP Employment Change (USD, GMT 13:15) – The ADP Employment survey is seen at 500k for November compared to the 365K in October. Thursday – 03 December 2020   Trade Balance (AUD, GMT 00:30) – Australian retail trade is expected to see a strong decline in August, at -8.5% y/y from the downwards revision in June at -2.9% y/y. Retail Sales (EUR, GMT 10:00) – Retail Sales dropped -2.0% m/m in September, more than anticipated. It left the annual rate still at 2.2% y/y, indicating a pick up compared to the same months last year, but different sales season amid the pandemic distort the picture and the annual rate is actually down from 4.2% y/y in the previous month. ISM Service PMI (USD, GMT 15:00) – US Markit October services PMI was revised up to 56.9 in the final read versus 56.0 in the preliminary. It’s the best reading since April 2015 and is a third month in expansion. In November the ISM Service PMI is seen at 56.4. Friday – 04 December 2020   Retail Sales (AUD, GMT 00:30) – October’s Retail sales could be improved by 1.6%, following a -1.1% September loss. Non-Farm Payrolls (USD, GMT 13:30) – Expectations are for the headline number to be around 750k in November, after gains of 638k in October, 672k in September. The jobless rate should fall to 6.8% from 6.9% in October, versus a 14.7% peak in April. Average hourly earnings are assumed to rise 0.1% in November, with a headwind from further unwinds of the April distortion from the concentration of layoffs in low-wage categories slows. This translates to a y/y gain of 4.2%, down from 4.5%. We expect the payroll rebound to continue through year-end, though the climb is leaving a net drop for employment for 2020 overall. Employment Change & Unemployment Rate (CAD, GMT 13:30) – Canadian data coincides with the USA release today with dire expectations for a slight deduction in Unemployment to 8.8% from 8.9% last month and a rise from the 83.6 in October for employment, to 100k. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date : 27th November 2020.FX Update – November 27 – Sterling in FocusGBPUSD, H1Narrow ranges have been prevailing in risk-cautious trading. The USDIndex settled around the 92.00 level, above yesterday’s 12-week low at 91.84. EURUSD remained buoyant but off from the 12-day peak seen yesterday at 1.1942. Cable also held within its Thursday range. USDJPY ebbed to a four-day low at 103.91. The Yen was concurrently steady versus the Euro and the Pound, but posted respective two- and four-day lows against the Australian and Canadian Dollars. AUDUSD ticked fractionally higher, which was still sufficient to lift the pair into 12-week high terrain above 0.7380. NZDUSD posted a new 29-month peak at 0.7030. USDCAD remained heavy but just above recent 17-day lows. Bitcoin, which performed strongly this year on the back of dollar liquidity, found a toehold, but remained over 12% down on its recent highs.US markets will reopen after yesterday’s Thanksgiving holiday, but market conditions will remain on the thin side. President Trump said that he will leave the White House if the Electoral College votes for Biden, which may be as close to formally conceding the election as he will go. A sharp focus remains on EU and UK talks, with a face-to-face round reportedly taking place in London over the weekend. There are now reports that the EU parliament might convene as late as December 28 to ratify a deal, if necessary.The spectre of a no-deal hangs over proceedings, though the consensus, as judged by the ongoing stability of the Pound, remains for a narrow deal to be reached.Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date : 26th November 2020.Brexit endgame remains in sharp focus!The USD has remained soft in quiet conditions, while global asset markets have seen little direction. The US Thanksgiving holiday has quelled activity. Europe’s Stoxx 600 traded near flat. Most stock markets in Asia gained, though remained off recent highs. The MSCI World Index is also off its highs, but remained buoyant and on course for a record monthly increase this month. Copper posted a new near 7-year high, and while other base metal prices were also underpinned most remained off recent trend highs. Oil prices saw modest declines after recent gains, which culminated in a nine-month high yesterday.The Brexit endgame remains in sharp focus!Sterling has seen limited direction, continuing to hold gains from month-ago levels of around 1.5% to 2.5% versus the Dollar, Euro and Yen. There is still no breakthrough in down-to-the-wire negotiations between the EU and UK, and there are lots of warnings of border chaos and, from external BoE MPC member Saunders, of long-lasting economic consequences in the event of a no deal exit from the common market.European Commission president von der Leyen said “we are ready to be creative” to get a deal while repeating that “we are not ready to put into question the integrity of the single market.” An Irish government member said that a deal was “imperative” for everyone.The steadiness in the Pound, the principal conduit of financial market Brexit sentiment, reveals that investors remain unperturbed. One explanation is the real money participants are sitting on their collective hands, positioning for an expected deal but waiting on concrete developments and details, while maintaining vigilance on the possibility of there being a no deal by accident.Short-term speculative participants, meanwhile, don’t seem to have had a fruitful time in trying to play the fatiguing myriad news headlines and endless deadlines that have come and gone. The latest and supposedly final deadline, is next Tuesday — December 1 — which leaves just one month for a deal to be ratified on both sides of the Channel. We expect to a deal to materialize at the last minute, just as the withdrawal agreement was seemingly pulled out of the hat at the ultimate minute a year ago. There may even be a fudged extension.Pressure on the UK government is intense. US president-elect Biden warned London that the scope for a deal with the US would be compromised if there is a return of a hard border on Ireland — which is what could happen in a no-deal scenario (the UK government would have the choice between maintaining a free-flowing border on Ireland at the price of breaking up the border integrity of the UK, and possible protests and even violence from loyalists, or breaking the EU withdrawal agreement, which would result in a hard Irish land border).A leaked Whitehall document warns of a “perfect storm” of chaos in the event of a no-deal in the Covid-19 era. There are also pressures on the other side of the Channel to reach an accord. While French President Macron has political incentive to put up a show of fighting over fishing rights, he is not likely to carry through on his threat to veto any deal as other key EU states don’t see the UK’s position on fishing as being unreasonable. France and other nations, and the UK, also need to maintain good relations for security and many other practical reasons.As for the market impact of a deal, much will depend on how narrow the deal is. The narrower it is, the bigger the negative impact on both the UK and EU’s terms of trade positions will be on January 1, particularly the UK’s.Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Those who take quick and payday loans and refuse to pay them back are now hooked.   Normally, it is not a good thing to go into debt unless that is your last resort. We know that people are fond of borrowing and they seriously hate paying it back. Even when it comes to paying back what was borrowed, your creditor will become your enemy. Such is the nature of human beings.   Debtors don’t want to return money even when they eventually have means of repayment. If anyone borrows money and returns it, it means the person has a Godly spirit in him.   If people ponder the power of compound interest, they would stay away from loans. If you pay 1.33% or 1.79% interest per month on a loan, you will need to pay back roughly 16% or 20% per annum. And this will begin to compound as long as you don’t pay.   Most borrowers who are now in trouble have realized that the interest rates are eventually higher than the capitals borrowed. They realize that the creditors are using an indirect way to enslave borrowers (go and work for me, bring back the capital plus profits).   The banks themselves know that business environment is very tough and are now indirectly asking people to work with or spend the banks’ funds and bring the funds plus profits back to them. Many borrowers really have poor mentality and they don’t know the gravity of what they’re putting themselves into.   If a bank could lend out 1 billion USD per annum, it would reap a return of 150 million USD (at least on paper). Do you think they will forget about you if you owe them even a small amount?   Loans without collateral are now popular. But your collateral is your BVN – unless you don’t want to operate accounts again in the country.   I have heard people saying” Don’t pay to my Access Bank account again, but pay into my UBA bank account.” “Don’t send that cash into my GTBank account again, but send it to Zenith Bank.” It’s like postponing the evil day.   Ti iya o ba i tii je eniyan, iya nri nkan panu lowo ni (Yoruba adage). I literally means: If Suffering has not come to attack you, it means Suffering is currently busy with something. If you think you can avoid payment by abandoning the account you used to borrow money, you’re only postponing the evil day.   They cannot come for you when your debt is small, but the debt will begin to compound and compound till it would make sense for them to come for you.   BAD NEWS FOR DEBTORS CBN has given banks permission to deduct from funds a debtor has in another bank account. For example, if you borrow quick loans from FCMB and you abandon your FCMB account and you are now operating another account with First Bank, FCMB can make a request to First Bank, and the money you owed will be deducted once or gradually from your account at First Bank, without your permission.   Would you now keep money at home, so that bad boys will come to you to take their dues?   Borrowing isn’t a good thing, no matter how plausible it looks.   Profits from games of knowledge: https://www.predictmag.com/   
    • LITECOIN (LTC) SUSTAINS RECENT RALLIES, FACES RESISTANCE AT $90 HIGH Key Highlights Litecoin rallies to the high of $90 The crypto may be range-bound between $80 and $90 Litecoin (LTC) Current Statistics The current price: $89.20 Market Capitalization: $5,900,735,267 Trading Volume: $7,953,660,011 Major supply zones: $70, $80, $90 Major demand zones: $50, $30, $10 Litecoin (LTC) Price Analysis November 24, 2020 Litecoin has continued its rallies as the coin reached a high of $89.86. LTC price has been making a series of higher highs and higher lows. The upward move has been facing resistance at $90. On the upside, if buyers can push LTC above $90, the coin will rally above $100 high. However, if buyers fail to resume the upside momentum, LTC will be compelled to a sideways move for a few days. If the uptrend is resisted the coin will be range bound between $80 and $90. LTC/USD – Daily Chart Litecoin (LTC) Technical Indicators Reading LTC price broke the resistance line of the ascending channel. This indicates a further upward movement of the coin. The crypto is at level 74 of the Relative Strength Index period 14. It indicates that the coin is in the overbought region of the market. LTC/USD – 4 Hour Chart Conclusion Litecoin has made an impressive bullish run on the upside. Nevertheless, the retraced candle body on October 31 tested the 61.8% Fibonacci retracement level. It indicates that the coin will rise to a level of 1.618 Fibonacci extension level. This extension is equivalent to $70 high. Meanwhile, the price action is above the projected price level. Source: https://learn2.trade 
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.