One of the factors that affect cryptocurrency market is the drop in rate of a coin, this can affect new investors and at the same time make them to go into another investment
What are the factors that affect the cryptocurrency market?
- Thread starter Erik4150
- Start date
There are certain factors that affect the cryptocurrency market, demand and supply are part of those factors. When the demand in the market increases the price increases and vice versa.
The price of crypto currency is determined through demand and supply. If the currency is in a great demand but short supply, the value goes up. However, it there is no depanm value goes down.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
- Thread starter
- #84
Coin market cap is one of the factors that affects cryptocurrency market and also the existence of whales investors who buy crypto in large quantities is another factor too.
The more people invest in a crypto currency, the more the value of the cryptocurrency increase. So the price of a coin is affected by its demand
The same factor that affect forex trading also affect the cryptocurrency trading. All of these are affected by the law of demand and supply. The more there is demand for a particular coin the the most the value will rise.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
Just like the physical market, demand and supply is one of the factors for a coin to rise or fall in the crypto market other factors may include activities of shark investors.
I believe alot of factor are considered to be an effect to the price of bitcoin In which the forces of demand and supply can be included, the market laws or policy and the raising influence of the government in the market environment.
In a free market the invisible hand of demand and supply force are the price determinant in the market. Also in cryptocurrency market where there is free entry and exit, the demand and supply force are the major price setter.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
they are different factors that affect the crypto-currency market sometimes the economy of a particular country can affect the price of cryptocurrency in the market why sometimes it might be affected by the amount of investors who deal in the currency.
No doubt demand and supply affects crypto, but I think government regulations too plays a role because for instance when a powerful country bans crypto it would definitely have an effect on the market no doubt
The main factor that affects teh cryptocurrency market is the amount of exposure that it gets in the news i think. This drives the supply and demand of the coin and determines if people start to panic buy and panic sell teh coin as well.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
Some of the important factors that affect cryptocurrency market are the influences of the stakeholders in the market. The decision of these people go a long way to determine what happens in the cryptocurrency market. Some of their decisions may create panic that will result in majority selling their coins which will lead to massive drop in the value.
Contrarily, bitcoin prices are influenced by the following factors:
The supply of bitcoin and the market's 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.
The supply of bitcoin and the market's 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.
one of the factors that affect crypto-currency market most times are also the world economy and also the purchasing power of investors this order increase or decrease it.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
There are many factors affecting cryptocurrency market and some of these include; the demand and supply of the currency, social, polical and economical events, influence of top investors etc. There are still other factors apart from these but the major ones are listed.
People that are investing millions of Dollars into cryptocurrency at the people that are behind The rise and Fall of cryptocurrency because when they invest so much and when they pull out their fun, the crypto market will collapse
When people start buying, crypto price starts going up, money money is invested, the higher will be the price value of each coin. Likewise, when people start selling, the price will drop, more the people sell, lesser will be the value of each coin.
Bizdustry Advertising
In-Conversation/Thread Advertising - Click Here to Advertise
Basically, the same factors that affect the demand and supply chain also affects the crypto currency market such as increase in demand, government regulations.
The major factor affecting the crypto currency exchange Business right now is that it is not regulated by the government. A lot of people are using that as an opportunity to really manipulate the market which is very bad
Newest Directory Listings
WWE Hub is a discussion forum for all things wrestling! Share and chat with other wrestling fans throughout the world!
ABCProxy is cost-effective, ethical residential proxies network!
Similar threads
