Evaluation of market dynamics: how the news affects the prices of cryptography
The cryptocurrency world has become more and more volatile in recent years, the prices fluctuating wildly depending on various market factors. One of the main engines of this volatility is the news. The cryptocurrency markets are subject to a wide range of influences, economic indicators and regulatory changes in the feeling of social media and celebrities. In this article, we will explore how news affects the prices of cryptography and will examine some examples of recent events that have had an impact on the cryptocurrency markets.
What makes the prices of cryptography vary?
The prices of cryptocurrencies are determined by the forces of supply and demand on the market. When there is a high demand for a particular part or token, its price tends to increase. Conversely, when there is a low demand, the price tends to drop. Other factors such as regulatory changes, social media feeling and economic indicators can also have an impact on prices.
How the news affect the prices of cryptography
News have long been an important factor in determining the price of cryptocurrencies. Here are some ways whose news affects the prices of cryptography:
- Economic indicators
: Economic indicators such as GDP growth rates, inflation rates and interest rates can have a significant impact on cryptocurrency prices. When economic indicators show an improvement, investors can become more optimistic about the future of the market and the value of individual parts or tokens.
- Regulatory changes : Regulatory changes can also have an impact on the prices of cryptocurrencies. For example, if the government of a country announces plans to ban certain types of cryptocurrencies, this could lead to a drop in demand for these currencies.
- School of social media : The feeling of social media plays an important role in the formation of investors’ emotions and market trends. A tweet of a leading celebrity or influencer can send shock waves via the cryptocurrency market, which makes prices quickly fluctuate.
- Investor confidence : Investor confidence is also an important factor in determining the price of cryptocurrencies. When investors become convinced that their investments are safe and precious, they may be more likely to buy on the market.
Recent examples of price fluctuations focused on newspapers
Here are some recent examples of price fluctuations based on newspapers on the cryptocurrency market:
- Bitcoin: The 2017 Rally : In March 2017, Bitcoin experienced a massive rally while investors became more and more optimistic about the future of the market and the value of individual parts or tokens. As a result, prices increased to almost $ 20,000.
- Ethereum: The Ico Boom : In October 2017, the initial offer of Ethereum (ICO) parts experienced significant price fluctuations after the announcement of its next intelligent contract platform. Prices have increased considerably during this period, reaching up to $ 400.
- Venezel and Binance Coin: The Sec Settlement : In June 2020, Securities and Exchange Commission (SEC) announced that it would investigate several exchanges of cryptocurrency, notably Coinbase and Binance. This announcement had a significant impact on the prices of cryptocurrencies like Vechain (veterinarian) and Binance Coin (BNB), which were both involved in the regulations.
- Tether and USDT: The 2018 Bank Run : In June 2018, Tether announced that he would stop his PEG from Stablecoin USDC to the US dollar after a series of problems with the stability of the American financial system. This announcement led to a significant drop in USDT prices.
Conclusion
News play an important role in training cryptocurrency prices and determining market trends. By understanding how news affects cryptography prices, investors can better navigate in the complex world of cryptocurrency markets. Whether it is an economic indicator, a regulatory change or a feeling on social networks, the news is always at stake in the cryptocurrency market.