We analyze the factors affecting the prices of cryptocurrencies
What affects cryptocurrency quotes: events, fundamental factors, the psychology of traders. Forecast for cryptocurrencies in the near future, and how to make money on it.
In contrast to 2017, since January 2018, the capitalization of the cryptocurrency market shows strong volatility. In January, capitalization reached its historic maximum, rising above $ 820 billion. The United States, but within a few weeks it fell below 400 billion. There is no single reason for this, all factors in the complex influenced investors who, in the wake of panic, began to sell off assets. Now the market stubbornly holds in the range of 250-500 billion and can break through any of these levels at any time. Read about what exactly can affect the rate of cryptocurrencies in the review.
6 factors affecting the rate of cryptocurrencies
Since the beginning of 2018, the capitalization of the cryptocurrency market has shown, to put it mildly, a roller coaster. A strong growth trend in 2017, after which optimists predicted the growth of the Bitcoin exchange rate to 50 thousand dollars. The United States and above suddenly ran into the ceiling at a mark slightly above 850 billion dollars. The United States, without even reaching the psychological mark of 1 trillion, and collapsed. The fall of more than 2.5 times painfully hit the category of investors, which are called “hamsters.” Lovers of free cheese thought that they could easily make money on an ever-growing rate and suffered enormous losses. In professional circles, the drawdown was called local, believing that it was a successful attempt by big capital to cut “hamsters”. And they even gave a forecast that in spring a new take-off “To the moon” will begin. However, by the beginning of summer, the exchange rate could barely break the 450 billion dollar mark.
This whole situation clearly showed that no one really knows 100% of why the cryptocurrency rate is moving in one direction or another. It comes to a curious absurdity when the course first falls off or abruptly takes off, and only then analysts retroactively find the reasons for this. Even now, there is no exact explanation for why the market capitalization suddenly fell (that is, there was a drop in all cryptocurrencies without exception) in January 2018. There are many reasons, but maybe it’s worth considering all these reasons in the complex? The main factors affecting the capitalization of the cryptocurrency market I will consider in this review.
Factors that affect cryptocurrency quotes
Despite the fact that more than 3 months have passed, there is a unanimous opinion why, from January 7 to 17, the market capitalization fell from 850 to 400 billion dollars. The USA, no. Therefore, I will start with curious opinions:
- One of the leading analytical publications in Russia released an article in late January that cited the cryptocurrency market crash on January 7 as the 100 billion capitalizations of 31-year-old programmer Brandon Chez, creator of CoinMarketCap. According to the publication, Chaz on January 7 decided to unilaterally exclude trading data on South Korean exchanges from the site’s algorithms. According to someone from his circle, these exchanges greatly overvalued the MTC, thereby distorting the overall statistics. The opinion that Chaz was partly to blame for the collapse was also confirmed by Mati Greenspan, an eToro platform analyst.
- No less curious is the idea of the Chinese accusations of a collapse. According to one version, the Chinese on the eve of the Chinese New Year were selling cryptocurrency for buying gifts.
There are other, more logical opinions regarding the reasons for the fall of the market. Someone calls the reason for the sale of coins the manager of Mt.Gox, someone believes that the reason is the hacking of Coincheck (although it became known after the collapse), and someone even saw a shadow conspiracy of big capital, which decided not to reach 1 trillion and leaked coins at maximum. By the way, a new drawdown in the first decade of June, when capitalization fell below 300 billion dollars. The United States, associated with the hacking of the Japanese exchange Coinrail, where the loss is about 40 million dollars. The USA. Given that the exchange is not close to the TOP-100, the version is dubious.