Reasons Why The Price Of Cryptocurrency Moves Up Or Down

 

What moves  price?

While bitcoin and other coins volatility makes the cryptocurrency an attractive opportunity, it also makes it a particularly risky market to speculate on. Its price can shift significantly and suddenly – and since the crypto market operates around the clock, this is liable to happen any time of day.

As a decentralized currency, Cryptocurrency is free from many of the economic and political concerns which affect traditional currencies. But as the market is still in its adolescence, there is a lot of uncertainty entirely unique to the cryptocurrency.

Any one of the following factors could have a sudden and significant impact on its price, and as such you need to learn to navigate the risks they may open up.

Cryptocurrency supply

There may be a finite supply of bitcoins – 21 million, all of which are expected to be mined by 2040 – but even so, availability fluctuates depending on the rate with which they enter the market, as well as the activity of those who hold them. The same can be said of many other coins. There are some with unlimited supplies such as Dogecoin. 

Related post: How To Make Money Daily Trading Bitcoin And Crypto On Luno And Other Platforms

Market capitalization

The value of a Cryptocurrency market – and how valuable it is perceived to be – both influence whether traders will look to get in on a surging opportunity, or short the latest bubble. Traders tend to be attracted to crypto with higher market cap.

Media representation

All currencies are affected by public perception. Positive presentation on the media has the potential of increasing the price on the long run and vice versa. Media presentation is very vital as regards to Cryptocurrency whose security, value and longevity is in question even at the best of times.

 

Payment integration

Cryptocurrency profile – and confidence in traditional currencies will depend on its integration into new payment systems, crowdfunding platforms and more. When Cryptocurrency is integrated into payment system and provides utility value, the price will see long term improvement.

Industry adoption

Bitcoin is yet to be embraced by businesses across the globe, and it remains to be seen what impact a more significant standing on the corporate stage will have

Key events

Any number of major events could have serious implications for the cryptocurrency, including regulation changes, security breaches, macroeconomic setbacks, coin upgrade/splitting and more.