Cryptocurrency markets move according to supply and demand.
13 Jul 2023, 15:31
Cryptocurrency markets move according to supply and demand. However, as they’re decentralized, they tend to remain free from many economic and political concerns affecting traditional currencies. While there is still a lot of uncertainty surrounding cryptocurrencies, the following factors can have a significant impact on their prices:
Supply: the total number of coins and the rate at which they’re released, destroyed, or lost market capitalization: the value of all the coins in existence and how users perceive this to be developing
Press: the way the cryptocurrency is portrayed in the media and how much coverage it is getting
Integration: the extent to which the cryptocurrency easily integrates into existing infrastructure, such as e-commerce payment systems
Key events: Major events such as regulatory updates, security breaches, and economic setbacks