Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Switchere_official on October 15, 2020, 10:41:52 AM
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The growth of the crypto rates is influenced by many factors — from the introduction of stacking and the withdrawal of tokens on the exchanges to acquisitions and obtaining financing.
There are at least 15 reasons that can cause a gradual or sharp rise in the price of cryptocurrencies. Cryptocurrency price hikes occur after disclosure of important information about the project development. They may be:
- Project mergers and acquisitions
Conclusion of partnerships
Receiving financing
Introduction of Stacking
Burning tokens
Adding a token to a new exchange
Starting the main token network
On average, in the first hour after the disclosure of such information token price rises, but slightly — only by 0.5%. This is due to the fact that it takes some time for information to spread in the crypto community. On the first day after the publication of the news, the asset price rises by 0.8–1.3%, and within a week — by 2–8.2%.
In the short term, announcements of significant improvements to the project and mergers and acquisitions have the greatest impact on the crypto exchange rate. In the long run, news about stacking implementation, partnerships, and halving also becomes an important driver.
News of mergers of projects or takeovers of one another in 90% of cases leads to an increase in token value within a week. On average, in such cases, assets increase by 8.23%.
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There so many reasons why crypto currency or a particular crypto will become more expensive like;
-Supply and Demand which is a very essential factor that aids the market value of things including cryptocurrency market price. If a lot of people try purchasing a particular coin then the price will definitely pump same with the lack of demand.
- Good partnerships can drive the demand of a particular coin thereby increasing its market value and making it expensive.
Generally cryptocurrency will become more expensive if adoption happens anytime which I believe is close by.
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Where are the 15 reasons? I only found several. Okay
First, about the price of a cryptocurrency, it will depend on supply and demand in the crypto world. If we are looking for the trusted coins, the value commonly will always ever use it for gathering. In this case, we can see how much we are trying to get my luck here.
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I do not think that calling cryptocurrencies expensive is the right word to use rather the crypto market is entering longterm bull phase which is happening after 2-3 years long downtrend so hodlers richly deserve it and i am sure it will bring up new millioners this time around as well.
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erhaps one thing that can make cryptocurrency prices expensive is because of their good track record. This of course will make many people choose the crypto. When supply is low and demand is high, it will make prices expensive. many are fighting over these coins.
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Yes, the factors or reasons cited above can be helping a lot for the rise of a certain coin or token in the marketplace. Investors are in for the money or the ROI they can get out of something they are staking on and so if there will a critical number of people who can be of the same mine then there can be a big demand created for that digital asset. And that desire can be the reason why some people (especially those connected with the asset) can be resorting to FOMO tactics. There are many ways to do it but it boils down to promotion or information dissemination -- those information can be based on truths, lies or a mix of both for the main purpose of attracting people to also stake on the asset. As they are saying, the more the merrier but many times the party can end up badly with many "investors" holding empty and worthless bags. You know what I mean.