Topic: How does speculation pump cryptocurrency market (Read 264 times)

Yes part of what drives demand or even supply is news because news actually are part of fundamental analysis that can drive price either upward or downward, take for example a positive news like adoption rate in crease about bitcoin it will help definitely create demand and the more the demand the more the market pumps, such as the news which looks bearish like the rates news, inflationary pressures and more of economical downturns this news actually makes the market dumps a bit because it triggers some investors to definitely sell or close their positions especially the short term traders. So yes it speculative news actually acts a catalyst to the market

Well as you talk am na so eh be, anybody fit speculate wetin the market fit look like, even normal people like you and me for the crypto space, for instance eh get some point wey i been dey speculate say Bitcoin go reach 100k before or after the year end then touch about 120 to 150 by the 1st quater of next year, that na my own speculation and as i talk am eh no .ean say the price go be as eh be, that na wetin I feel and expect the price to be, another person fit object that my speculation come talk say eh no go be like that but another way round or even more than wetin i dey speculate. However speculations from influencial people like Elon Musk and Michael Saýlor fit manipulate the market and cause many crypto users to continue to buy then hold coins like Bitcoin for long period causing the price of that coin to increase. However the major thing whey dey cause volatility of the market na war, fud, political influence and the influence of crypto whales like those wey i mention earlier.

One thing we also need to note is that contextually speculation can be said to be news, rumors which varies from one person to another and this said news or rumors can as well influence the forces of demands and supply which  apparently affects the price of Bitcoin either to go up or come down, demands and supply really has a lot to do with those fundamentals of speculation even though they are merely assumptions which may or may  not happened, but are still effective either negatively or positively to demands and supply.

Speculation doesn't contribute to volatility just like they have said earlier the two  main factors of market volatility is the demand and supply I believe they even taught  you in school that anytime consumers are demanding for a particular product the price of that product will be very high and anytime the product surplus people no go price an well and sometimes they no go even care to buy this one na the dump.

However, I think you didn't check properly before saying that speculation is a major factor of Bitcoin volatility, speculation is just like a guess or prediction I mean it is just like saying that Bitcoin is going to hit $150k before the end of 2025 that's speculation, guessing or predicting the price or value of something without a 100 percent certainty or sure. Your last question '' what will be the potential risk or the benefits of an investor ''  is not a specific question, to be honest with you the question don confuse me scatter, everybody dey learn sha but try dey specific if you dey ask question make person for fit understand and give you waiting you wan hear.

What you described is trading and not speculation, when trading we speculate but when speculating we haven't actually traded (hope you understand). Speculation na just assumptions and no be say the thing done happen so because of this assumption, the market can be influenced depending on how many traders speculated in a particular way. When more people say the market go fall so them begin to sell, even though the market no suppose to fall but because plenty people done get that mentality and they have opened orders based on that, the market go fall and the reciprocal happens for the market to rise.


Same benefits you get from making a correct prediction or a wrong one. You lose in one and gain in the other. Being capable of predicting the market movement correctly gives you a profits, vice versa.

Sometimes we ourselves dey confused ourselves too much and if you no put head together you no go know wetin op dey cap, but based on say you be leaned person you no too reason am because you already know wetin op dey cap. Even me self e been dey twisted for me but sometimes we need twisted post to test the ability of those who are really following up discussion or maybe are being lost along their ways.

Simply put..
If you get hold on something for a certain amount and decided to hold on to that thing for period of time maybe till when it has increase in value so you can sell and make profits . But It turns out you are not the only one In possession of that thing and others are.patiently waiting to sell .
It creates an abnormality in circulation which in Bitcoin leads to volatility and the rest of it.

It is not speculation that pumps the market price but forces of demand and supply. When the demand is very high,  the price of Bitcoin and vice versa. As you know, certain news release triggers high demand whereas certain news might reduce the demand and this is called fundamental. I don't think speculation has to do with those fundamentals that drives the demand rather it is just a way of predicting the price base on what the charts are saying and what the news is also saying. Speculators are working with expectations which may or may not happen and this is how the price of Bitcoin is driven.

Lol think I get Op caught you by your balls because after your jumping up and down to read the post until you catched up so meanings, you still landed to the bottom line of the Ops intention maybe he slightly didn't make it clear to your understanding.
So then looking at all being said, it's still pictured that speculations has a path playing within the crypto markets which has the potentials to drive investors being opted to buy or sell their bitcoins.
Let's imagine a speculation that the bull run has started and will end up within the remaining weeks of the year, it wouldn't matter if the speculation was going to be true or false, as much the news is coming from a strong source, it'd definitely pushed some holders to sell their coins out of Fomo.
Such holders are not self contented enough so they wouldn't want to lost. Also equivalent to when a strong news source speculates possibilities of further market increase to last a period, it'd also prompt some enthusiasts to buy and hold. So being honest, Speculation do have a great role to play in the crypto markets which could either trigger increase of decrease of market value.

The only thing Elon Musk has to do is just for him to publicly display his affection towards the price of Bitcoin, using any of his social handles as an influence to the market, just within a time frame, we will begin to experience a positive signal in the market. Speculations are very important component of the market, we as investors rely mostly on this speculation to feed on how much profits we are going to make out and the total funds to decide on as start up funds.

While we are talking about speculation, we can talk about what happened using the US election as a reference, Trump made addresses concerning Bitcoin reservation which has not yet solidified and already the price of Bitcoin has seen new prices, the market is tied by this speculations and this stirs people into investing what they have and then the price begins to change.

Firstly if we wan look dis definition wey you talk here, e no go too correct because e go make am look like say you dey mean am for one very small scope and so if you wan reason am put for one very big scope, you go reason am say e go affect generally other things wey person fit speculate wey no be crypto but since we dey talk about crypto here, you need understand say you must not buy or sell for you to dey speculate, you fit dey reason am say coin go do like dis or dat, dat one na speculation too so dat kain thing dey make people go rush buy or sell especially when news com follow backup dat kain talk na dia wey volatility go com join put body wey be say d whole market go dey wan move with dat kain speed for buying or sell, so na so two of them dey use take relate wey e dey com affect the market.

If Elon Musk were to speculate that the price of Bitcoin would hit $150k by November next year, I think it would cause a major stir in the crypto market. You see, when someone as influential as Elon Musk makes a statement like that, people tend to listen and take action. The news would spread like wildfire on every social media platform, generating massive hype. And we all know how hype can impact the price and adoption of Bitcoin.

Speculation, especially from big players like Elon Musk, can indeed influence the price of Bitcoin. Some investors might see it as a signal to buy more Bitcoin, hoping to make a profit when the price supposedly hits $150k. Others might be skeptical, but still, the speculation would drive up the price of Bitcoin in the short term.

Speculations could also impact price movement, it all depends on the individual involved, what do you think would happen if Elon speculate the price of Bitcoin to hit $150k by November next year?

No bro. Speculation no be unto buying and selling, no reason am like that. Speculation na simply as forecast wey people dey do on the market just like dem dey also analyse football game wey person want bet. For football now, you analyse and bet before dem even start the match. So na also the same way wey speculation dey work no be about the real action of buying and selling. For example, speculation na wetin fit dey follow news come and the effect in interpreting it.

Okay to tell you how that fit relate to buying and selling be say, If one big man now like Elon musk go him X account go announce say him go buy more dogecoin for example, so that go make hodlers and intending hodlers dey speculate say the price to buy doge coin go begin rise, then people go use that anxiety begin dey invest on it and when new investors see the performance and popularity, dem too go buy and na so that coins go dey increase.

Speculation is not the necessary factor why the price of Bitcoin pump, the best thing is understanding the basics of the market which happens to be placed on the buy and sell order. Speculation are just high hopes, nothing more to it but in the midst of those early assumptions, it does happens to put more live into how we see and urged to throw in our capital.

Bitcoin started on a rough edge, what made it become this visible and now many are craving to become part of the movement, it all happened due to proven facts from the market (historically repeatedly) which led to us doing same by assuming that Bitcoin price will continue to go high and now the more we purchase the higher the price movement.

Speculation is a normal thing, the market might not have prospered to this extent if not for certain speculations that wowed many people to become investors. Those news being spread will also lead to speculation, same with after the US election after Trump speech about creating Bitcoin reserve, we all speculated on seeing the price quickly go up and this created a much impact on the market, better than what we expected in this cycle.

wetin de cause speculation in most instances na news when fit be news of a big whale coming in to invest in bitcoin or a statement from a potential investor when go send signal to the market say there might be an increase or decrease in demand when go in the process affect bitcoin price. i think the issue here na say the OP no really understand wetin be speculation or possibly him de define am the wrong way but in an ideal case, when there is a positive price sentiment, it usually have the tendency of affecting bitcoin price for the better and when the reverse is the case. the implication is that news causes speculation and an increase in the rate of speculation also affect how willing people are towards buying or selling of there coin which also affect the market in it own way.

How do you mean? What does news have to do with what I have just said? Or are we in any way arguing that news doesn't cause any impact on price movement?

That is not true. Speculation is just a rumour of price of bitcoin to reach a certain height wether high or low. For example people may speculate that bitcoin will reach $100k by the end of December but that doesn't mean it must reach that price. It's just but a mear speculation which may or may not hit $100k that is just speculation.

How speculation increase the pump in market is when influencers, or political decition trigger investos to add liquidity to bitcoin. For example if it is speculated that "Elon Musk set to buy %30 of bitcoin total supply" and if he started buying bitcoin and bitcoin price start increasing, people will see the rapid growth of bitcoin and other will follow suit to buy instead of selling and that will pump the market.  Note that market pump is done or achieved when the demand of buy is higher than the sell. Of course there will be sell and buy Oder, but the buy Oder will be higher. this keep bitcoin going higher as a result of speculation like that of Donald Trump which was speculated that he will make bitcoin a federal reserve asset like Gold, this increase the Level of bitcoin adoption of the masses even though he has not started implementing his goal.

I hope you are aware that news has an impact on the crypto market, just as it does on FX and stocks. A single tweet from Elon Musk was enough to propel rocket Doge from $0 to nearly a dollar; imagine what would happen if Elon Musk or Trump tweeted about Bitcoin or speculated on its price. Elon Musk is one of those influencers whose words alone could cause a crash or move the market.

Speculations of price by investors does not in any way cause the price of crypoto asset to go up or come down and as a matter of fact, anyone can actually speculate about the price of anything which does not contribute to price increase or decrease. Just like some already said, speculations is simply the prediction of expected future price by investors where by the predicted price can actually be reach or not.

Speculation is just about guessing what the amount would be but that doesn't mean that it would be effective on the price, and speculation let's say people can say that bitcoin will hit $150,000 by the end of 2025 but if we get to 2025 the price might be above $150,000 maybe it will result in $250,000 at this point speculation does not give the actual price neither does it control the price but what really controls the price is the demand and supply. If the demand is high then there is every tendency for the price to boost such above expected but when the demand is low price wouldn't increase as expected maybe bad news hit the market the price might even fall lower although sometimes good news can effect the market positively for example; just as Donald Trump won the US election the victory also give rise to bitcoin price the way we didn't expect.

Firstly speculation doesn't just mean the act of buying and selling of a digit asset that ends up in profit, that's totally wrong of you.

in real sense speculation is the prediction, in other words, making hypothesis about anything when it's financial related or not with the hope that it moves towards a favourable coast. Just to be clear; speculation can be an assumption or a rumour especially when it has to do with finances but can still be disregarded as it's just an assumption without a solid reason or evidence to backup the claims.

having said this, speculation can be catalyst for a bullish or bearish movement of any crypto or financial assets as it's regarded as the same thing as rumour. Rumours in the crypto industry are very important as some time is the cause of volatility of an asset, for instance when bitcoin speculation is high that it will be bullish people might begin to buy out of FOMO causing the expected or speculated price to become a reality.

The potential risk or benefit of an investor is simply the same as the risk of buying any crypto asset. volatile is the biggest risk and at the same time the biggest favour for investors.

The risk is that it can lead to losses, and the benefit it's that it can lead to profit it's Viz vice.

I will give a very simple analogy, one that is used very often in trading.


The above is true very often in crypto markets. When there are a lot of traders that are bullish on any crypto token/coin, they can speculate on it by going long. And if there are more buys than sells, price ends up higher. The reverse is the case for bearish speculation and sentiment.

To put simply, if there are more people speculating about a specific price direction, they're inclined to trade in that direction and it becomes a self-fulfilling prophecy.

Here are some examples of the above:

— German government wanted to sell bitcoin, People speculated the price will be much lower than the price at the time. Result? Price moved from $66K to $48K because more people speculated the sells.

— Bitcoin ETFs speculations earlier this year:  A lot of people speculated it and the notion was that wall street being able to buy Bitcoin will be good pumpamenntals for Bitcoin's price. Result? Bitcoin never went below $20K since then.

— The recent HYPE airdrop from hyperLiquid: A lot of people (including myself) speculated that HyperLiquid not having any allocations for VCs and giving more to the hands of the community like Bitcoin did by putting the community first was the a major catalyst. Result? It launched yesterday and has been upONLY. A lot of millionaires made but not me as I'm still coming up lol.

If I bend down read this your post e dey look like say na trading you dey define as speculation but if I stand read am, e dey confuse my head scatter. Well wetin dey pump or dump cryptocurrency market na demand and supply and no be speculation. When many people demand the cryptocurrency because of the news wey them don hear, the price go go up which is wetin u dey call pump. On the other hand, when plenty people dey sell the cryptocurrency too, the price go go down and na wetin them dey call dump. Na for you to just know when to and which one to sell and when.

This your definition of speculation eh, e be as e get o. E no too enter like that but rather, e fit well as trading. Speculation no necessary mean say, you Dey buy or you Dey sell. You fit actually speculate and do nothing about am and the fact say, you do nothing no mean say, you never carry out the act of speculation. So then, watin con be speculation;

Speculation na the expectancy of price to do certain numbers on the charts, either towards the bulls or the bears. Na from there you go define your own entry or exit. You fit speculate based on watin you already Dey see Dey happen for market, using indicators and other analytical tools or you just blindly speculate. Anyone you use, na your matter.

How e take Dey affect traders;
Many people depend on analysis or read the chart through another person speculation. Why? Because then feel say, this person sabi pass me and e Dey more progressive or correct on en analysis. The thing there be say, no be only one person Dey think this way, people way get this same line of thought on dependency plenty. Na that plenty way them need to change trend direction.

The risk way Dey there be say;
E fit lead to market manipulation even though e no easy like that and na mostly traders with low capital Dey suffer am. Whales na them Dey for the end of the matter and na to chop you be that o.

First u need to ask wetin bitcoin speculation be. So if u know wetin e be, you go understand say the influence of speculations na to creat awareness mostly social, media and political events specifying the potentials of bitcoin. E fit be positive or negative news Speculations.
So the force of the speculations fit attract more investors and the values of adoptors investments fit trigger the market pump. Much so even big institutions and persons way foresee the speculations being true matters get possessions way fit make holders buy huge amount of bitcoin that way get muscle way fit cause market increase.



Investors potential risks no fit dey specific other than that,  investors potential risk fit be when they only follows the speculations without working out to know the reality of how bitcoin dey work such as those who dey easy to careless with their wallet private keys and fallen into the hand of frauds and also those who think the crypto market such as bitcoin na quick rich investment so the disappointments they faces fot be their own potential risks when them adopt bitcoin way them never prepare their minds to accept anything way fit happen if them invest on bitcoin just because of the news them dey hear and we know say some Speculations has false onto say na guess we dey guess about the future price of bitcoin.

As everyone here believed and know that speculation is the act that deals with buying and selling of a digital assets which result in expectation of profits,however with the prices fluctuating hastily,cryptocurrency can be highly volatile,moreover i learnt that the major factor that contributes to volatility is speculation,then how does speculation pump cryptocurrency market?
What will be the potential risk or benefits of investors?

Your helpful contributions will be appreciated.