Why is Bitcoin market price is so volatile?

Bitcoin’s price is subject to frequent fluctuations – both upwards and downwards; this is largely because the bitcoin market is relatively small and it doesn’t take significant amount of money to move the market price, which in turn makes the price of bitcoin somewhat volatile.

Will the market price ever be stabilized?

The market price of Bitcoin can be stabilized, once the market matures and there are more participants to the market.

More transactions and demand means more liquidity, that can lead to stable market price and more smooth transactions at the desired price.

Posted by Maria Sanchez

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Maria is an expert of financial markets, bringing all the information from English to Spanish for a better understanding of the online traders. She is also a day trader with experience in developing trading strategies that generate profit while minimizing risk and working under high pressured environment. While being a portfolio manager by herself, she focuses on marketing and consultancy of financial and Insurance products.