What affects the rise and fall of the cryptocurrency rate?
Newsfeeds are often full of headlines about cryptocurrency volatility. At the same time, there are frequent rises and falls in prices by 40% or more in just a few days. What actually causes such a roller coaster ride in the cryptocurrency world?
◾️ News background
The media are effective means of manipulating the public. This factor is relevant mainly for short-term forecasts. Jumps in the rate of cryptocurrencies often occur after the appearance of important information about the project. This can be information about mergers and acquisitions of projects, partnerships, adding a token to a new exchange, etc.
◾️ Technical progress
New platforms, growing investor interest, and the deployment of innovative functions have a positive impact on long-term rate growth. The growth of the cryptocurrency market is based on opposition to classical economic fundamentals. The pursuit of decentralization, privacy, security, speed, and low cost lays the foundation for the development of the cryptocurrency market.
◾️ Influencers
Influencers often control the market through doubts, uncertainties, fears of missed opportunities. The behavior of financial enthusiasts is a common reason for cryptocurrencies' price spikes and falls.
◾️ Potential interest in cryptocurrency
When the number of thematic queries on the network grows, the price of bitcoin and any cryptocurrency also grows, respectively. Thus, the higher the interest in the currency, the more it is used, and as a result, the more expensive it becomes.
⠀
Dive into the crypto world with Cryptology! 🔥
#Cryptology_trading
Newsfeeds are often full of headlines about cryptocurrency volatility. At the same time, there are frequent rises and falls in prices by 40% or more in just a few days. What actually causes such a roller coaster ride in the cryptocurrency world?
◾️ News background
The media are effective means of manipulating the public. This factor is relevant mainly for short-term forecasts. Jumps in the rate of cryptocurrencies often occur after the appearance of important information about the project. This can be information about mergers and acquisitions of projects, partnerships, adding a token to a new exchange, etc.
◾️ Technical progress
New platforms, growing investor interest, and the deployment of innovative functions have a positive impact on long-term rate growth. The growth of the cryptocurrency market is based on opposition to classical economic fundamentals. The pursuit of decentralization, privacy, security, speed, and low cost lays the foundation for the development of the cryptocurrency market.
◾️ Influencers
Influencers often control the market through doubts, uncertainties, fears of missed opportunities. The behavior of financial enthusiasts is a common reason for cryptocurrencies' price spikes and falls.
◾️ Potential interest in cryptocurrency
When the number of thematic queries on the network grows, the price of bitcoin and any cryptocurrency also grows, respectively. Thus, the higher the interest in the currency, the more it is used, and as a result, the more expensive it becomes.
⠀
Dive into the crypto world with Cryptology! 🔥
#Cryptology_trading