What are the factors that affect the cryptocurrency market?

[Nathaniel]

Bitcoin pricing is influenced by factors such as: the supply of bitcoin and market demand for it, the number of competing cryptocurrencies, and the exchanges it trades on.

 

[Chumzy]

There are many factors that can make a coins value move. The first would be how people perceive they coins. Secondly will be a decision from the manager team that might make public react.

 

[Akinwale701]

Bitcoin, Etherum, Litecoin etc... Sometimes the price of these coins rises and sometimes it falls.
What are the factors that affect the cryptocurrency markets and how does it influence the rise and fall of popular cryptocurrencies?

The factors that affect Cryptocurrency markets are very many but the interplay of demand and supply plays a very vital role. Also, activities of miners are very paramount as well. When miners work at full capacity, there will be more coin and the price will reduce. Thereby making it easy for everyone to buy some coin.

 

[Usman Sattar]

Cryptocurrencies were non existent about a decade ago, and they have certainly come a long way since then. In this article we try to understand how cryptocurrencies are valued, so as to give the investors a better understanding of what they are getting into.
Before we Begin

Fundamental analysis forms the backbone of any type of valuation.
Performing fundamental analysis for cryptocurrencies is different due to the absence of financial statements to analyze.

Post automatically merged: Jan 31, 2021

Cryptocurrencies were non existent about a decade ago, and they have certainly come a long way since then. In this article we try to understand how cryptocurrencies are valued, so as to give the investors a better understanding of what they are getting into.
Before we Begin

Fundamental analysis forms the backbone of any type of valuation.
Performing fundamental analysis for cryptocurrencies is different due to the absence of financial statements to analyze.

 

[Yanizie]

Factors can be their marketing strategy how they spread their tokens and its capability and usability. Their Affiliates, investors, and the big factor for volatility is the trading market. Outside factors can be the other organization like SEC if they Sue them or appraise them.

 

[Briangsam]

The law of demand and supply doesn't exempt cryptocurrency as well. The higher the demand, the higher the price and once the demand drops, it is expected to have a dip in price.

 

[mcjerry]

One more factor apart the ones measure is popularity and volume in transactions. Recently Ellon musk posted an hash tag of #bitcoin and in 24 hours, the price of bitcoin increased by 20 percent. That is popularity. And also when the general transactions made with a coin increases, the price also increases and vise versa

 

[Onachukwu]

• The supply of bitcoin and market demand for it.
• The cost of producing a bitcoin through the mining process.
• The rewards issued to bitcoin miners for verifying transactions to the blockchain.
• The number of competing cryptocurrencies

 

[idhans]

Bitcoin, Etherum, Litecoin etc... Sometimes the price of these coins rises and sometimes it falls.
What are the factors that affect the cryptocurrency markets and how does it influence the rise and fall of popular cryptocurrencies?

There are a lot of factors that affect price movement of cryptocurrencies. When a lot of people buy a particular cryptocurrency, and it becomes scarce in all exchanges, naturally the price of that cryptocurrency will go up because of the demand. It will also fall when lot of people are selling a particular cryptocurrency at the same time.

 

[Erik4150]

Perhaps that is why the price of bitcoin has been fluctuating too much recently. I think a lot of people are selling it nowadays and that makes the price to drop. But it looks like ethereum is the most stable coin at the moment.

There are a lot of factors that affect price movement of cryptocurrencies. When a lot of people buy a particular cryptocurrency, and it becomes scarce in all exchanges, naturally the price of that cryptocurrency will go up because of the demand. It will also fall when lot of people are selling a particular cryptocurrency at the same time

 

[Klismannm12]

It is said to be affected by demand and supply but I think that demand and supply are never the reason,I think it's just some market manipulative tendencies that brings that into effect.

 

[LaylaG]

Bitcoins is the controller of other cryptocurrency and when I check on the price chart of bitcoins and other cryptocurrency I found out that whenever the price of bitcoins is rising the price of other cryptocurrency will rise, it depends on the demand and supply of cryptocurrency in the crypto system.

 

[Judee201]

the main reason for the drop has been the negative sentiments across all markets caused by the global geopolitical news flow”.

This, he said, has impacted all asset classes and has happened at a time of low liquidity which has led to volatility.

“When there is more liquidity and markets go risk-off there is still money going into safe haven assets, gold, yen, etc. As Luno has commented previously, these investors have often placed a small amount into Bitcoin as a hedge. But even safe havens are struggling to find buyers.

 

[Kingsley]

This factors has a very long range, which include government regulations and policies, political instability, the forces of demand and supply, the attitude of the media and the likes, we can also consider the level of education as another factor. lack of sensitization of the populace as touch the meaning and relevance of the crypto market is another drawback.

 

[Peppul]

The main factor affecting bitcoin is the supply and demand. Others are
1. Competition. While bitcoin may be the best well known cryto-currency, there are hundreds of other tokens vying for user attention.
2. Cost of production. While bitcoin is virtual, they are nonetheless produced products and incur a real cost of production, with electricity consumption being the most important factor by far.
3. Availability on currency exchanges. Just as equity investors trade stocks over indexes like NYSE and others, cryptocurrency investors trade cryptocurrencies over coinbase and other exchanges.

 

[Patrik]

It's a matter of investments (also known as supply), demands exists and helps as well, who plays the most important role is the big investors and multimillionaires that invest lot of money and huge part of their wealth in cryptocurrency which gives amazing boosts in price

 

[Taiwoayan]

Law of demand and supply is the main cause

 

[Obaterof]

In general, the shifts in cryptocurrency rates can be explained as due to the economic law of demand and supply changes. ... For instance, if there is high demand for an asset with inadequate supply, the price rises. If there is more supply than demand for an asset, the price drops.

 

[Damscooguns73]

Concerning the factor that affects the cryptocurrency market. Well, I think the first factor that affects cryptocurrency is the demand and supply. When ther is high demands of the cryptocurrencies, the supply goes up also thereby making an increase in the market value and vice versa if there is low demand of the cryptocurrencies

 

[Obaterof]

Central exchanges control most of the flow of cryptocurrencies, giving them a lot of incentive to grow their revenue by artificially manipulating crypto prices. ... In addition, price manipulations can be hard to prove and control in unregulated markets. Central exchanges also provide a single point of failure.