increase: 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.

Airdrop Analyst, Trader

What drives up or down the price of digital assets?

I think there are several factors and as follow: 1. Availability vs demand the limited Availability of cryptocurrencies and its uneven distribution to increase its popularity as well as price. The increase in asset prices is partly due to an increase in the number of requests in recent years. 2. Adoption in the real world Many countries have legalized the use of crypto as a means of payment. The adoption of digital currencies into the real world, if done massively or at least legally in many large countries, will increase in value. This is due to the limited number of crypto assets. And by being adopted into real life, the demand will increase and of course trigger price increases. 3. Miner production costs The cost to mine crypto money is one of the determining factors for the price of the cryptocurrency. For example, bitcoin has a high production cost because it has to have special hardware which is usually assembled with classy and expensive hardware, CPU, GPU, server, and cooling system as well as electricity costs incurred. 4. Regulation Although digital currency cannot be intervened by any government because of its decentralized system, when cryptocurrencies enter the mainstream of a country's financial system, then that country can intervene which of course can affect the price of cryptocurrency. For example, China banned bitcoin mining throughout its territory, UK banned Binance, the world's largest crypto asset trading company, from operating in its country. There is also the discourse of imposing taxes on cryptocurrencies in Indonesia which is still being discussed by the relevant agencies. Interventions like these can impact crypto prices globally. 5. Important figures One of the most obvious examples is Elon Musk who often tweets about certain cryptocurrencies on his Twitter account. So great is Elon's influence on the crypto world, with just one tweet, he could inflate the price of Dogecoin, which was included in his tweet. 6. Fear and greed The greedy nature of the public who buys a lot of crypto money like bitcoin when there is no price movement means that in the future the price will rise even higher. The more people who buy cryptocurrencies, the higher the price of the cryptocurrency and this affects other people to buy bitcoins too. When the price of bitcoin has almost touched its highest price, many people are trying to make a profit by selling their bitcoins. The more people who sell their bitcoins, the more the bitcoin price will fall.

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

My main priority is that I must be consistent with the project and help it progress to a successful one. And when I hold the project, I must confidently not be easily provoked by other people/FOMO.

Self employed and motivated crypto trader and defi analyst

What drives up or down the price of digital assets?

A digital asset is an asset in which the buying and selling of it takes place online through complex processes on a blockchain under seconds. The price of these assets fluctuate as is the normal behavior of commodities in the market. The price of any commodity whether digital or fiat or goods or stock is primarily affected by demand and supply. Other factors may include: 1 News: this is the most good and bad factor that affects the price of crypto currencies because most people love to bug or sell news about any crypto in order not to get caught up in the wrong side of things. 2 listing and delisting on exchange: as the name goes, once a digital asset is listed on any exchange (cex or dex) the price tends to increase and vicer versa for delisting. 3. Politics: many countries do not support the use of crypto currencies and some who have already begun may later get banned by the government. This affects the price due to the fact that so many people will want to take their coins down in order to prevent shutdown. 4. BTC halving 5. Geopolitical events 6. Release of new Blockchain upgrades like eth2.0 7. Crypto innovation like the nfts, metaverse and other innovations The list continues

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

When choosing the right crypto I look out for a list of things 1. Tokenomics: the tokenomics tells us how the token actually originates and now the team would allocate funds for various projects. Like the initial supply, the listing price, the initial market cap, if it is deflationary, information about burning, and so on. 2. I look at the road map: the plans they have like plans to prevent dumping after presalers take profit, plans for each quarter of the year and so on. 3. Team: the advertising, their coordination and manner of replying questions on discord, telegram or twitter. 4. Staking apy if there is any 5. Usecase

Blockchain | Web Developer

What drives up or down the price of digital assets?

I believe that the price of digital assets drives up the popularity of a given cryptocurrency, its usefulness and capitalization. If the project is promoted by a famous person, it can also help to increase the rate. When it comes to declines, emotions most often cause above-average declines.

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

When choosing the cryptocurrency I want to have, I am guided by the team behind the project and the chance whether the project will be useful in the coming years.

Crypto trader, Decentralized finance market analyst, investor and professional crypto educator.

What drives up or down the price of digital assets?

Demand due to speculation: The price of digital assets is tied to the demand (amount of buys) from people who want to own that particular digital asset. As more people buy than sell, the asset's price tends to increase. A reverse case could occur if there are more sales than buys. Usecases: The functions a particular digital asset has can drive up its demand. For example, digital assets that provide an opportunity to earn yields or interests may increase the demand of that particular asset, as users may view it as an investment opportunity.

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

1. Use cases, 2. Team background, 3. Partnerships announced, 4. Private sales funds raised, 5. Tokenomics (document explaining the token economy)

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.

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.

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.

Aspirational Whale

What drives up or down the price of digital assets?

I see 4 major drivers to the continuing increase in Crypto market valuations #1...the Federal reserve is printing Trillions of dollars #2...Major players are embracing Crypto such as Tesla, Fidelity Goldman Sachs, Mastercard, Visa, PayPal, and Morgan Stanley among others #3... there is an explosion in Blockchain technology Apps particularly Decentralized Finance which is now participating in the $400 trillion Global transaction system via Financial Technologies on the Blockchain and #4 buying Crypto is now easy

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

My priorities is to seek a return on all coins i own. Therefore the yield on all the tokens I invest in is my prioirty, whether the yield comes from noding, staking or farming.

Production Manager

What drives up or down the price of digital assets?

The value of anything is determined by supply and demand. If demand increases faster than supply, the price goes up. For example, if there's a drought, the price of grain and produce increases if demand doesn't change. The same supply and demand principle applies to cryptocurrencies

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