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

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.

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

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.

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

Cryptocurrencies Trader, Revain Author

What drives up or down the price of digital assets?

Just like in the world of Economy, Demand and Supply, these same principles apply to Cryptocurrencies and other digital assets. As one side of the table desires to purchase an asset, the other side increases the value. Also, marketing push, or as crypto degens will call it; Shilling, is also one thing that drives prices.

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

The supply of the token and the inflation rate The team, I prefer Doxxed team with a good Linkedin profile The utility, mostly I choose assets with a real world utility. The Blockchain it's hosted on is also a determiner It's liquidity and availability on a range of exchanges

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.

Engineer

What drives up or down the price of digital assets?

If we are talking about global crypto markets, digital assets have been increasing their value due to Central Banks' aggressive pandemic-era stimulus measures, which have implied almost free money (interest rates near zero and massive investment in bonds that keeps yields near zero, as well). Now, these stimulus measures are going to be reduced in the short/medium term until they upend. This process is been called 'Taperin'. In fact, Fed has already started this month.

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

The two most important things for me are: 1) The idea behind it. That is, the white paper that explains it in order to assessed it. 2) Who's behind it, as well. This means evaluate whether there is a solid team and is well funded.

Influencer and Safety officer

What drives up or down the price of digital assets?

Thankyou with the question, I think about drives up or down the price of digital assets is - value of that asset -popularity and people's interest in that coin -number of markets to trade - Advertising, promotions, also help a lot in inviting people to know the information. and pay attention - Most importantly, most people will pay attention if the coins or tokens are given out for free and making airdrops. -However It also depends on the driving force and supply of the coin or token.

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

Hmm, For me I interested in - Token Supply - That token was population -That token has an airdrops and Giveaways to promote - list on CoinmarketCap and Coingecko - populars from influencers. Thankyou.

Self Employed

What drives up or down the price of digital assets?

It all depends on the Market value of the blockchains and cryptocurrency’s value which affects the rise and fall also known as drives up and down

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

The most important priority when choosing the right project/token/coin is The future estimate or prediction of the price or value of the token coin

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