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

General Manager @ Excoincial Exchange

What drives up or down the price of digital assets?

First of all it's very cardinal to understand that cryptocurrencies or digital assets are very volatile in nature excluding stable coins. However, there are many factors that drive these digital assets up or down, Firstly is the issue of mass adoption by global institutions like Central bank digital currencies CBDC, this move makes the global market increase its trust and more interests to the investors. Secondly, Bitcoin EFT approval by SEC becames a dream come true for investors which they have been waiting for a long time. Thirdly, legalizing of these digital assets by countries like El Salvador etal, in short prices of these digital assets rise because of positive speculations or fundamentals. Digital assets also go down because of negative news and speculation from global leaders for example China cracking down on Bitcoin by banning it and closing down of mining operations, Nigeria's refusal to allow banks in trading Bitcoin and other currencies, Elon musk crack down on purchasing Tesla cars with Bitcoin. In conclusion, digital assets go up and down because of negative and positive speculations based on fundamental calls by adoption and crackdown that give investor confidence or distrust.

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

There are many projects with spectacular missions that have mushroomed on crypto sphere. However, there are several priority or construction that are make before choosing a project; - how powerful and dedicated is the team behind the project, - Has the team undergone any auditing certification, KYC/AML verifications, - How good is the community support for the project, - How's their roadmap and their whitepaper, - do they have enough liquidity for their currency and is it locked for a minimum number of 3years if it's a DeFi project, - Have this project partnered with several media houses and exchanges. Al these question and other analysis helps me consider effectively over what project I should invest in.

IT Consultant / Certified Crypto Trader

What drives up or down the price of digital assets?

The main factor that influences the price of digital assets to rise up or down are: 1. The team behind the project, their capabilities on meeting the demands of the roadmap in conjunction with the maximum supply and circulating supply. 2. Staking also helps digital assets to maintain their price. When a large portion are on staking with incentives, holders will not want to catch out in haste 3. Regular updates with a huge social active community base also goes a long way. When there is a trading contest, new partnership, product release. Holders and supporters do share, retweet, like etc which makes such to get across to a large audience and adversely affects the price most often upward. 4. Institutional Adoption: When a large institution with huge merchants embrace crypto such as PayPal, Mastercard etc, this information is disseminated across millions of their users and many tend to join crypto through this which mostly leads to a price surge,

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

The team behind the project, their capabilities. I will now have an in-depth look at the roadmap if it's justifiable and be able to deliver as scheduled before goint to check on the tokenomics

Crypto Trader

What drives up or down the price of digital assets?

The price of digital assets was highly dependent on mainstream news. A good or bad news affected the price of a digital asset severely. While a good news about a cryptocurrency or cryptocurrencies in general brought more investors to the cryptoverse, a bad news repelled some of them from the market causing a plunge in price. However, since Q4 of 2020 the mainstream media started covering the news about cryptocurrencies in a better way after institutional investors made it official about the crypto hodlings. Apart from rise of some meme coins caused by statements made by influential people, retail investors are more aware than before about investment of cryptocurrencies. Generally the retail investors now tend to understand the underlying technology around a crypto project instead of being a victim of pump and dumps. Though it is yet in a very nascent stage, yet its happening.

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

• I look at the roadmap • The activity of the community • The profile of the developer(s) • The project competitors • Usability • Incentives

Crypto enthusiast.. Defi trader.Spot trading. Affiliate marketer graphics design...All about the cryptospace

What drives up or down the price of digital assets?

Like any currency, cryptocurrencies gain their value based on the User's demand(buying and selling pressure) Scarcity(limited availability of the assest) Community involvement

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

Knowing the marketcaps Knowing if it's an utility token or a meme(most meme token dies off after the hypes is off) How well it'd been backed by the community It's roadmap and Tokenomics

Crypto and Forex Trader

What drives up or down the price of digital assets?

As a rule, bitcoin pulls on itself the entire cryptocurrency market as a whole, positive news about the main cryptocurrency is growing, and all the rest. The factors affecting cryptocurrencies are very different from those affecting traditional financial instruments. The exchange rate is strongly influenced by the assumption that, perhaps, the government of some country will allow the circulation of cryptocurrencies. There are two main differences between cryptocurrencies and traditional assets - a large number of OTC / hidden transactions and a large amount of news related to the regulation of the entire industry. The news background is a strong price engine, but OTC market transactions in fact determine the target values of Bitcoin in the short term. The news background has a general effect on the entire cryptocurrency industry, this is a statement or reports of regulators regarding cryptocurrencies. The leader is the US Securities and Exchange Commission (SEC), which has a severely negative stance towards any type of cryptocurrency.

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

Development team. White Paper. It is important to study the past of the project team and who is behind it. Determine how interesting and promising the underlying idea is. Check for MVP availability Check the execution of the roadmap. Get to know the project community. Determine the market value of the project. Assess the market segment to which the project belongs. Therefore, it is extremely important to choose projects that develop a real product and have a fundamental basis for growth.

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.

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.

trader

What drives up or down the price of digital assets?

crypto will rise when the interest of buyers is getting bigger, many people are very confident in the project and the project is growing to form a community, this is one of the fundamental things of the development of the price of crypto coins

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

clear projects are usually written in white paper that makes sense, clear permits, concrete evidence nowadays there are many fraudulent projects and we have to be careful, we have to read a lot of news related to these projects

Crypto Trader

What drives up or down the price of digital assets?

In my opinion, these are the most important factors controlling the rise in prices of digital currencies: -Understanding the value of a cryptocurrency. -Cryptocurrency supply and demand. -Cost of production. -Cryptocurrency exchanges. -Competition. -Internal governance. -Regulations and legal requirements. -Finding value in cryptocurrency.

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

1- Approved Blockchain Technology and Problems to be Solved. 2-Project team and community. 3-Available Liquidity. 4-Project partners. 5- The team’s ability to create a niche within the crypto community. Taking into account the general condition of the market and the extent of saturation of the market or not.

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