Key factors that determine Bitcoin’s volatility

TIMESOFINDIA.COM | Sep 19, 2021, 08:26 IST APP Get notifications on latest Business News Bitcoin is a fully decentralized peer-to-peer payment system, notorious for its volatility. The crypto’s volatility doesn’t occur in isolation. In fact, it determines the course of the crypto market. Most cryptocurrencies are impacted by Bitcoin’s fluctuating prices. Understanding the determinants that affect Bitcoin's volatility will help you gauge the developments and tendencies in the crypto market better. Here’s a look at some of the key factors. Investment attractiveness Attractiveness is a more dominating variable than demand and supply in determining Bitcoin's price, according to Ladislav Kristoufek's analysis in his research paper, What are the main drivers of Bitcoin price, published in 2015. Attractiveness could be seen as the good reputation and investment appeal of Bitcoin. It is mainly shaped by media influence and political changes .