market: 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.

Mor-Wey Logistics Limited

What drives up or down the price of digital assets?

Crypto trading is like the stock market trading. The direction of the prices is usually guided by the influx or withdrawal of invested market capital. A project with a surge in its market capital indicates more funds from investors and people pay attention to such details. The scarcity of the assets. The simple basic principle of economics applies here as well. When the quantity of an asset in circulation is high above 50% of its total supply, it indicates that its investors are holding and not selling. Such indication points towards prospect and everyone would want to have some in their bag. Information, sometimes rumours can cause an accumulation of assets by investors or its panic sell. Positive information most times yields good results if it's feasible and negative information has its own effect as well.

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

Before investing in any project, it is important to pay attention to its use case and road map. What are their plans, their vision? How does it ameliorate societal problems? How does it empower sustainable development of our economic, social and financial problems? Does it advance any particular sector in technology in respect to the future? The objective and goal of a project is imperative when making investments. This in a way gives confidence of its longevity and perhaps, its success as a business. Then comes the money. How much is invested, and in what duration? Who are they partnering with? What is expected in return? These questions helps steer one in making a decision on whether or not to invest. Of course, there are projects with good white paper but they never seemed to make it. Yet, the right questions and good research helps limit the risks of fake investments and guides one on the direction with prospects.

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

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 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 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.

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.

Operator

What drives up or down the price of digital assets?

We all already know ... The supply and the demand ... But why do people invest in crypto? Well, it is a technology that in my opinion is going to change the world as we know it, it is the new money that everyone should have, better money ... And also when it goes up so much and everyone thinks they can make money with it, it is a ball that it does not stop, of course it also falls a lot sometimes because there is a lot of money that comes out of the market when taking profit because there are still few places where they accept crypto and then it is sold to continue using the euro ...

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

Well, very simple, I choose a project that I see that solves things in the ecosystem and that has upward potential, that of course ... Nor do I usually pay much attention to other projects, I choose 3 or 4 of the best known and greater capitalization ....

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