The price is created by our perceptions, do you think 0.01 BTC is worth for $617? if you say yes, that's why you willing to sell it for $617, if you think it should be higher, you will not sell it and you're fine to wait as long as you find someone that willing to trade for x price.

No, exchanging for service not counts as a transaction.

Transaction is when you only move the coins from one place to another, not necessary you get something after moving the coins.

Exchange, trade, sell, buy, etc you name it are the same thing.

Transactions don’t really affect the overall price. It’s mostly the trading volume that impacts Bitcoin’s price since there’s a massive amount of money flowing in and out. As for Bitcoin’s current price, it’s based on the movement within exchanges, not individual transactions.


No, it doesn't affect the price.
Yes, it’s all about supply and demand. Like I mentioned, when there’s a strong buying or selling force, it impacts the price. That’s why we sometimes see pumps and dumps—sudden spikes in buying or selling pressure. On normal days, Bitcoin’s price still moves, but it’s much less volatile.




Definitely, it’s subjective since the major reasons for price movements often involve speculation. News, whether positive or negative, especially on regulatory aspects, plays a huge role in driving Bitcoin’s price up or down.


It's bad, as it defeats the purpose of a decentralized blockchain. It’s meant for transactions, and if everyone just holds, it becomes a stagnant asset, which makes it pretty much useless.
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Of course, all involve transactions but in different purpose. However, on exchanges, that’s where we really see price movements. Like I mentioned, when people speculate, it can easily move the price (up or down). The old saying, "buy the rumor, sell the news," is how traders operate—they’re just playing with the price to profit. But, of course, not everyone is profitable. There are also losers due to wrong predictions or judgments.


Now you know, so just HODL.


Welcome buddy, and welcome to the bitcoin world.

When bitcoin is being moved to an exchange, the market interprets it as an intention to sell and that can have a negative impact on the price, but of course, it has to be a large/significant number. So that will mean either a lot of people are transferring to an exchange at the same period or a very large amount of bitcoin is being moved to an exchange, just as we saw recently with the German government.
Also, the amount of transactions in the exchanges may be a factor. When more people are selling their Bitcoin they move to exchanges or convert them to stablecoins, which would mean a reduced demand for bitcoin and that might also affect the price depending on the volume.

Also, the perceived motive of the transaction is a factor. Moving a bitcoin from one wallet to another can affect the price if the market feels the owner(s) have a motive to sell. If a wallet with a large sum is transferred to another wallet that the owner is known for buying bitcoin, the market might interpret it as a sale and that could also affect the price.
Generally, I feel it all boils down to how the market interprets the transaction, that is why FUD plays a role.
 

Since we're speaking hypothetically, if everyone holds their bitcoin including the institutions and exchanges who hold the most bitcoin, I believe bitcoin price will hult at the last traded price. It won't go up or down until someone decides to sell.


Selling or buying (trading) of bitcoin is still a transaction. You sold for a fee and you also sold for a fee and it is in the blockchain, so its a transaction.

Many people think that if everyone holds Bitcoin, the price will go up because the demand on this coin is growing but I personally think that if we all hold Bitcoin, then this coin will die. What's the point of having money if you don't use it? There no point because money needs to be in circulation, constant transfer is what makes and keeps it active, you buy things with Bitcoin, you fund business with Bitcoin... This is the lifeforce of Bitcoin and every currency to my mind because Bitcoin is a payment method, by holding it, we will kill it as a payment method.

Most of today's trading is done on centralized exchange. We deposit coins on one exchange, this exchange collects it and gives us the opportunity to buy/sell Bitcoin without making an on-chain transaction. It's traded virtually on the platform.

I think that price is created mostly by whales. I pay $617 in 0.01 BTC because that's the current price, not because I think it is worth it. Btw I got your point.

Just like what others have said the value of bitcoin is actually the same which is one bitcoin equivalent to one bitcoin, it is the fiat equivalent place on it that actually varies and this is mostly done by individuals or market makers. They set the price to an amount they think is suitable for them and buyers buy for an amount they think is ok for them. Then this actually increases or decreases just like the normal commodity we have, if 10$ was placed on it and then people start selling off in large chunks for that amount (supply) then later since the supply is actually large I can buy anywhere and people are eager to sell I can just simply lower price to like $9 and this will make desperate sellers to sells since they want to just sell.

Now in terms of a demand I have this bitcoin for that same $10 and I see lots of people actually asking to buy it for an amount as a marketer it is just reasonable that I sell to them higher since they are eager to buy and I have it so I can simply increase my price to $11 to make money out from the demand as at then. This is exactly how the demand and supply chain for every product is .



If everyone holds bitcoin which I will tell you will never happen because we are all different and have different strategies to follow. But should this happen it simple bitcoin will be more scarce and we all know what scarcity causes most especially for a thing which every one wants it simply increases the price place on it,

Yes a transaction is simply a movement from one address to another which is registered or stored  on the blockchain, so lack of transactions will be bad for miners and subsequently for the network

I don't find any complications in understanding how transactions work and why the price changes.

A transaction has nothing to do with the price in general, for example, I may have 2 Bitcoins in one of my wallets, and I send them from that wallet to another wallet that I have. Will that affect the price? No, because I'm simply taking money that I own from one place and placing it in another place. For buying goods, it's basically the same thing. You send 0.01 Bitcoin to a merchant for buying a good, you are simply paying the price for what you are buying, and that doesn't affect the price because you are not selling your Bitcoin to someone but you are exchanging a specific amount of your bitcoins to get something.

The price changes when there are two parties, one is selling and the other one is buying bitcoins and not some other good. For example, I have 1 Bitcoin, I originally wanted to sell it for $65,000, but I saw that multiple buyers are waiting to buy that Bitcoin. What do I do? I increase the asking price because I see there is a lot of demand and since the supply is limited, there will be someone willing to pay me more than $65,000 for it.

Similarly, the price decreases when I want to sell my Bitcoin for $65,000 but I see people aren't lining up to buy my Bitcoin so that I can increase the price, but they are bidding lower and waiting instead of jumping to buy at a higher price, in that case, if I need to sell it, I will lower the price and accept what the market is asking at the moment.

It's simple supply and demand, nothing more.

It’s really surprising that you are a senior member of the Bitcointalk forum and still don’t know the basics about Bitcoins. Bitcoin transactions happen in blockchain. In simpler terms, blockchain acts like a path through which Bitcoins are sent or received. You can watch any video on YouTube to understand the graphical representation. Now regarding the price, then it changes due to the fixed supply of Bitcoins. People buy and sometimes sell the coins, as Bitcoins are fixed, hence the price goes up or down to maintain the market demand.

Sometimes the level of knowledge is not being measured by rank; beside, the question the Op asked was out of curiosity, and what you explained in terms of how transactions are being handled on the blockchain is what I believe the Op already knows, judging from his post-history and the little technical knowledge he has shared.

The question asked most times I also do wonder about it, aside from the law of demand, what more triggers and adds value to bitcoin in terms of how it should be priced, and I have come to the conclusion that the price we add to each bitcoin is based on how much we think it's worth and not just how much it's being priced in the market. Which is why some people still believe that bitcoin is undervalued. Some argue that it's overpriced; how you picture and price it depends on how much value you see in it.

Maybe i should just remind you of these two fact checks to make you have a recall to make you know why it all happens this way.

1. The architectural framework on how bitcoin was built is found on the whitepaper blockchain technology.

2. Bitcoin will majorly have to depends on its market demand and supply and either of this is determined by the market equilibrium of the buying and selling rate from its users, which is why it will always be volatile.

coins moving from one address to another address does not affect the price
the price is based on the market orders of centralised exchanges. not the blockchain itself
many people keep saying "supply and demand" but thats just high school bad economics lessons

did you know i can deposit a small amount of my hoard and cause more market movement that 1000 people with collectively more coin than me
this is because of different market order strategies

ill give an example
1000 coin: shared between a group of 1,000,000 people
500 coin: my deposit

so here you would think the group has more market power then me. and the market has 1500more supply of coin, causing a 1500sell off to lower the price.. however...

imagine instead of me selling my btc once as a lump for USD, i instead done this
[BTC->ETH][ETH->USD][USD->BTC]
now all of a sudden on the USD->BTC market im treated as a buyer
now my funds will eat up half of the groups coin. and then in seconds i repeat the arbitrage route and done it again.
all of a sudden i have taken all of the groups coins so they are no longer part of the possible sell pressure.

i can then keep looping it and eat up other sell orders and so cause a price rise

what you need to learn when most order lines of a market order book is 0.001btc, throwing 500 coin around can eat through alot of order lines causing more affect. and due to arbitrage opportunities of circling other order books to get back to the other ide of the original order book. you can repeat the effort, generating more 'trade volume' without needing multiple allotments of coin amounts

also instead of being a market 'taker' i can put my order to be a market 'maker' where it creates walls
this is why you see the market prices stay within a certain range like hit a support bottom or a resistance top for a period. because certain whales dont want the price to go down too low or up too high for that period. so they keep prices in a certain window

the market is also not controlled by 'supply' because even if an exchange has 1m coins deposited. not all of those coins are on a active order book, nor are set at the spread of the market price, so they may never fill.. so even if a exchange has a supply of 1m coin its only trading 0.001btc at any millisecond and sometimes its the same buyer/seller on a arbitrage loop rather than the 100m registered users