There are many causes and influences such as media, HNWI's, whales & hacks that work together to run us into a bear or bullish market.We can't imagine where crypto prices will land but using these factors we can guess which way prices will go.
So, keep in mind these influencers and factors before entering cryptosphere.Never ignore these points.
Crypto market is taking a new swing so we take an bird -eye view of these FACTORS 🐱🐱🐱🐱
- Mass adoption is biggest catalyst for price rise.Daily increase in volume/marketcap is an example.
- Bitcoin dominance is another big factor.(For detailed discussion see my previous article)
- News channels and big media houses get the word out whenever there's a boom.
- Usage of a coin/token determines it's worth.The more it has useability, the more it has value.Don't invest in shitcoins.Do fundamental analysis of selected one.
- Government regulations commonly lower down the price but it could raise too.
- Buying an asset at irrationaly high price and assuming it would be sold to another fool investor, it leads to the bubble being busted.
- Wrong speculation that price will continue to rise and never come down.Avoid such theocratic speculations.
- Manipulation of market can't be ignored and ruled out because crypto market is too small as compared to other markets.These whales may be: 1)..HNWI (High net worth indvidual) One who can trade with huge cash amounts and move the market in a desired direction.Those can be identified by accredited behavior as they are not accredited investors. 2)..Institutional investors.
Disclaimer:The above article references an opinion and is for informational purpose only.It doesn't constitute an investment advice.
Resources and images: