Bitcoin’s price movements —Is it simply down to supply and demand?
When you work at a Bitcoin exchange, it’s common for friends, family and the media to regularly ask you what’s causing the price movements. They always want an exciting answer too.
Is more Tether being printed suspiciously? Is it down to a recent event like Facebook’s Libra news? Is China banning Bitcoin? Or the US government opening up? Donald Trump Tweeting? The UK in turmoil over Brexit? Or is it some bad players attempting market manipulation?!
Of course, there may sometimes be an obvious answer that we can associate with a recent price move, but more often than not my answer is always the same…
“Nope, it’s just simply supply and demand”.
As a Bitcoin Exchange we can see how well our volumes and registrations stack up against the Bitcoin price movements. The correlation between these is spot on. Recently, I decided to pull the numbers together and help visualise what we understand to be the real cause of the price movements.
If you asked any other Bitcoin exchange they would likely say the same. Just recently, Jesse (Kraken’s CEO), mentioned very similar insights here.
So, yet again my answer to the Bitcoin Price movement is simply supply and demand.
To explain this further, our team has created an infographic which shows the correlations I’ve mentioned above. Check it out below and let me know your thoughts over on Twitter.