coin: Why is crypto going down? When crypto will go up? Factors influencing the price of digital assets

OTC Deals. ICO Advisor at Cryotoknowmics, BITOZZ and More, Strategy, Investor Relations, Big Network in The Cryptospace

What drives up or down the price of digital assets?

Behind every market are actual real people. And those people go through specific cycles in their emotions which influence their behavior, which influences price action. Let me explain: If traders perceive, that the market is a bull market, they trade by betting on price going up and setting stop losses at certain levels. There are always bears and bulls fighting about price direction. Bears may then try to bring price down, but if the bulls are stronger, price will keep moving up. If the bears win, price will go down. Also the market so far, in crypto, moves in 4 year cylces. About one year after each BTC halfing we get a bull market, because BTC gets more scarce. After BTC , ETH and then the oher ALTS move up. Once the bull market peaks price will reach a low point approx. one year later and then consolidate for 2-3 yeas before the next halfing takes place and everything starts all over. This time, we have much more money in the market because of institutional investors looking to get their piece of the pie. This is why many people think,this cylce could extend much longer. Nobody knows for sure though. I don`t want to go on tooo long. Conclusion is: Emotions of traders play a huge role if prices rise or fall. Furthermore the whales(holders of a huge amount of a specific coin) play their "games" and can move the market, cause fake-outs and the like. And last but not least - the news that hit the market also have an impact on how people feel - which in return impacts their trading behavior/price movements.

What’s your most important priority when choosing the right project/token/coin?

Real use case of the project. Do they solve some kind of real problem. Is the team behind the projec able to actually pull it off? Do they have some hype or not? For short term: where is the token in it`s cycle? For long term: will the project be a real game-changer and be needed in the future?

Crypto researcher and writer- Copywriter

What drives up or down the price of digital assets?

There are several factors that influence the prices of cryptocurrencies. And here I will discuss a few of them. Breaking news: Some breaking news, especially involving cryptocurrencies or legislation influence their prices. For example, if the action of a government is positive towards cryptocurrencies, their prices rise and vice versa. For example, the decision by the Chinese government to ban bitcoin mining negatively affected the prices of BTC. The news that El Salvador has adopted BTC as a legal tender helped to increase the price of BTC. The recent bull run of BTC could have been necessitated by the news that United States has approved some BTC Exchange Traded Funds (ETF). And we have seen the number of countries approving ETF increasing. Market Sentiment: Market sentiment is about how buyers and sellers of a certain cryptocurrency think about it. For instance, recently market sentiment led to the rise of the price of Shiba Inu. If the market expectation is high on the possible rise of the price of a cryptocurrency, that has positive pressure on the price. Demand and supply of the cryptocurrencies: When there are more buyers of a cryptocurrency than sellers, the price of the coin increases. When the number of sellers of a cryptocurrency is higher than that of the buyers, the price increases. Fud: fear, uncertainty and doubt (FUD) negatively affects the prices of certain coins. On the other hand shilling has a short term impact on the price of a certain coin. Recently, we noted that once Elon Musk talked about a certain cryptocurrency in a positive way, its price would rise. Change in token supply: The change in the volume of the circulating supply of a coin may affect its prices. When the supply of a token decreases, all other things being constant, the price of the token increases. That is the reason why come projects burn their tokens at an established rate. A burnt event decreases the supply of the token, hence positively influencing its price.

What’s your most important priority when choosing the right project/token/coin?

Personally I look at several fundamentals of the coin. One of the things I look for is the network it exists on. I normally favour projects on Tron blockchain and Binance blockchain. This is because of the cost of transactions. The exchanges where the coin exists: I like a coin that is on several exchanges that include decentralized exchanges and centralized ones. This gives people much flexibility when trading the coin. Liquidity of the coin: I prefer a coin which has high liquidity. This means that orders are easily fulfilled in short time. The team: I study the team behind the project and its history. A good team should have balance in terms of expertise and experience. A team made of people of different age and sex is appealing to me. The country in which it is registered is also very important to me. Ranking: For an already existing coin I look at the trading volume both in the short term and in the distant past. The market capitalization is also important to me. Therefore, I normally choose coins which are within the top 20 rank according to market cap at CoinMarketcap or CoinGecko.

Community Case management worker, crypto trader

What drives up or down the price of digital assets?

Bitcoin is the face of the cryptocurrency market. And the majority of price movement within the market is dependent on Bitcoin’s success or failure. For example, most altcoins face volatility when Bitcoin begins to drop. Anything from negative press to government crackdowns can cause a chain reaction that leads to a crypto crash. At the moment, Bitcoin is trading around $60,000 after hitting lower value down to $20,000. Apart from Bitcoin's influence there are other salient factors like government crackdowns and the resulting backlash have led to market uncertainty and volatility like right now in my country Nigeria as the government suspend any crypto transactions which led to right now closing down all bank accounts of citizens suspected to be into crypto currency transactions which in the long run could affect the price of tokens.

What’s your most important priority when choosing the right project/token/coin?

How Useful the Coin is? Unlike the stock of a company, you can’t assess crypto coins. The best way to assess a crypto coin is to check its utility. Check how useful the coin is in the real world. Whether it is solving any problem or does it have any real-world utility? For example, crypto coins like Ethereum used for transactions, payments, smart contracts, etc. These utilities simplify the agreement and settlement between businesses. This allows a platform between two businesses to make financial transactions more effectively. Therefore, measure the potential of a new coin by comparing it with other similar coins. How is it performing, what are the problems it is solving? What is the Purpose of the Coin? Check out the official website of the coin, you will find the purpose of the coin in the whitepaper. check their blog. Note, if you don’t find any information on its purpose or the site is full of only marketing stuff, then reject the coin. Analyze its Competitors Another important factor is to check its competitors. Where does it stand as compared to similar kinds of tokens or coins in the market? Remember while you consider his competitors, make sure to check the life-cycle of the coin too. Demand- Supply While checking the utility of the coin, you will figure its demand. In fact, a rise in demand ensures rise in its value. On the other hand, a high supply can reduce its price. However, a fixed supply is a good investment option in the crypto market. But ensure that the coin solves a real-world problem. Market Cap and Founder’s Holding It is crucial to check the market capitalization. Because market cap ensures liquidity, and liquid coin performs better. Another important part is to check the total holdings of the coin by the founder. This increases your trust factor before investing. When the founder of a coin holds a large amount of the coin, then it is a good sign that they believe in their project. Valuation Valuation gives you more clarity. A cheap coin does not mean that it is a good option for investment. There are other factors that must be considered while analyzing their valuation. When the price is higher than the number of users using it, then it is overpriced.

What drives up or down the price of digital assets?

maybe the movement factor of BITCOIN and BITCOIN Domination, or market demand that makes a certain digital asset or coin go up or down, and maybe from the event factor held by a certain coin developer.

What’s your most important priority when choosing the right project/token/coin?

Of course, what needs to be considered is the coin/token project, whether the price will potentially increase in the future, and the activeness of the coin developer in building the community.

Professional Author and Crypto Trader

What drives up or down the price of digital assets?

Digital assets, unlike Fiats, has a fixed supply. For this reason, their value is solely dependent on how many people know about it, and have invested in it What I'm trying to say in essence here is that the value of digital assets is determined by adoption, hence the need for advertisement of digital assets, unlike Fiats which doesn't require that

What’s your most important priority when choosing the right project/token/coin?

When it comes to making a choice in relation to a project, coin or token, I have learnt to be very careful. This is because no one is responsible for your financial decisions, hence the need for careful consideration before putting in you hard earned income into a project. I would be listing some important features to me below: 1. Use cases: I make use case the top priority because there would be no massive adoption for a project without a use case. The value of a project increases only when there is massive adoption, which happens only when there's a good use case. 2. Adoption, or steps the company take to achieve massive adoption: I would never put in funds in a project that is not taking any step to tell the world what they do. To achieve massive adoption, one must take some steps, some of which includes Advertisements and some other things. Whenever I find a project that tries all its best to get that done, I usually hop in the train. 3. Transparency of the people in charge: Before I get my funds into any project or coin, I would ensure I have checked the people behind it, checked out their past records and some other things. Doing this would make me less disturbed. You don't expect me to invest in a project owned by a one-time prisoner, the fear would always be there 4. The last thing on my list would be the company behind that project. I would ensure I check the company behind any project I would like to invest in. I would check the company's success rate and other how successful some of the projects they found or supported is. The end point to all this is Research, I guess that's why DYOR (Do Your Own Research) is a possible phrase in crypto. As a crypto trader, you shouldn't just invest in a project because others are doing so, you should ensure you make a whole lot of research on the project

Banking

What drives up or down the price of digital assets?

someone's interest, the more people are interested in crypto, the more the price of crypto goes up because many people try to buy and keep it. the project itself, if the project has a solution to the problem, many people will be more interested in the project, apart from tokenomics and the roadmap itself and make the price of that coin ir token get higher. Politics or government policy, if a government prohibits or allows a crypto in its country, it will be bad news in the cryptosphere and make the price go up or down, like China bans crypto and mining there, it will cause the price to go down, or other news like El Salvador who become first country that legalized Bitcoin, that would be good news, fomo and make the price higher

What’s your most important priority when choosing the right project/token/coin?

The project itself, it has own blockchain or not, roadmap of the project, their tokenomics, useful of their token or coin, and the most important is their community.

Graphics/Defi trader

What drives up or down the price of digital assets?

The movement of the digital market depends on the decisions of the traders and whales. The price of an assest is also affected by the community and marketing of that particular digital assest.

What’s your most important priority when choosing the right project/token/coin?

The most important priority while choosing a project/token/coin is the community and what that particular project has to offer.. that is what new invention or change are they offering or what is new about the project and the people going into it.

Cryptocurrency and Forex trader, website developer and a student

What drives up or down the price of digital assets?

What drives up or down the price of digital assets are the buying and selling pressure respectively. When people who buy are more than people who sell the buying pressure exceeds the selling pressure which makes the price to shoot up and vice versa. Most people who wants to buy digital assets wait until the selling pressure is more than buying pressure which would enable them to buy cheaper and make more profits. Those who do not understand the trend of the digital asset would buy when it's expensive and the knowledgeable ones in the field would sell it and wait for selling pressure to exceed buying pressure which would enable them to make more profit when they buy cheaper while the non knowledgeable ones will make losses

What’s your most important priority when choosing the right project/token/coin?

My most important priority is the use case. Is it something that people will want to use? Is it something that would be valued? Or is it just a project/token/coin that was established for the fun of it. And also the team behind it. There would be no project or token or coin without a solid team

Blockchain analyst and cryptocurrency trader.

What drives up or down the price of digital assets?

Many factors might be considered but for sure it still remains clear that the major influence on the market and it digital assets happens to be as a result of the market capitalisation and how often or how many buyers are willing or are simply holding this assets. So mainly,the fate that drives up or down the market is usually dug from the activities that are performed by both buyers and sellers.

What’s your most important priority when choosing the right project/token/coin?

They main thing i consider when choosing my own tokens are first,i try in as much as possible to view the price chart in the last few hours and decide on how the profit over this token will increase my yield on the capital invested. Secondly,the other thing i consider is "news" that is,what is the recent information about this coin/project/token.

Trader

What drives up or down the price of digital assets?

demand and hype from an influencer. and the quality of an asset with its benefits in the crypto world. An asset will be very valuable if it has good benefits and utility.

What’s your most important priority when choosing the right project/token/coin?

I prefer coins. because with a coin means that the coin project can be considered mature with the vision and mission of the project itself. the main priority in a project is to build maximum trust and branding

This is not a financial advice. Please do your own research and consider the risks of trading cryptocurrencies.