What changes cryptocurrency price?
Crypto prices today demonstrate the bear trend. As you know, the cryptocurrency market lives through cycles - up and down price movements every day. It opens many earning opportunities for traders. In the long-term, the market lives through the bear and bull tendencies:
During the bear trend, all crypto rates fall. The demand for assets is decreasing; people are starting to withdraw their funds from crypto exchanges. A panic mood accompanies this tendency.
During the bull trend, the buzz around the crypto field is growing; people want to buy coins; demand is increasing; prices grow and reach their peak levels. Many new crypto projects and startups emerge.
The euphoria around the crypto market is always replaced by deep frustration and disappointment when prices reach their peak and start to reduce. Smart investors always use the downtrend to analyze the market and choose promising coins. Important to note that not all crypto projects survive during the bear trend (or, as some people call it, "crypto winter"). Analyzing the strengths of crypto projects helps to understand if they will go through a tough period and get the chase to grow and reach heights in the future (during the next bull trend).
To understand if an asset has the chance to bring a fortune during the bull run, it is necessary to analyze crypto today. For that purpose, it is crucial to understand what moves crypto rates up and down.
Factors Driving Crypto Coin Price Up and Down
As we have said, market trends determine crypto rates. That is all about supply-demand relations. Here the following factors play a role:
Pumps and dumps. When large investors sell their coins massively, they artificially drop the demand for coins, and the price drops. And vice versa, when they buy coins, the demand grows, stimulating other people to buy assets and increasing the price.
News and media. When a crypto project is emerging, and a lot of money is invested in it, advertisements fill the Internet, drawing the attention of investors.
It is not entirely correct to decide to buy crypto assets based on the news and hype. A much better option is to conduct your own research about the technology and the developers of a project, analyze price charts, etc.
To see the relevant cryptocurrency list and price, welcome to the WhiteBIT platform, and to know more about how the market works, visit its Blog.