Topic: Several Factors That Can Affect Cryptocurrency Prices? (Read 515 times)

Supply and mining problems are eliminated with token economy .

Demand and utilities are highly tied ones but most cryptos are being created for speculative purposes hence we cannot expect other being just another payment system. But, when it will be tied with any real world application then we can expect demand to increase over the time. Unfortunately, tokens are suppose to be acting like a stock of a company but that also being turned as speculative instrument.

Psychology has nothing to do with a coin when it does not have a attractive supply nor demand nor utilities. But, devs usually go for pumps and dumps to create those attractions which eventually lead to psychological consequences but artificial things cannot be held for long hence such coins may fail over the time. 

Bump and dump is more common with the newly listed coins because it has less marketcap so it is easy to manipulate the prices.

But whales also manipulate the prices of altcoins from time to time so its better to beware all the time.

Those are just rare events and possibly will have short time effect on that coin's price that's why said its better to follow bitcoin than each and every market movement.

The rise and fall of bitcoin do not affect every coin. There are instances where no matter how low the price of bitcoin is, when it is time for some tokens to rise, they will.
Also, there will always be trading, when supply and deans are constantly in place on the market. Particular the demand for the coin. The first thing the tea of a serious project does, when they want a price increase for their token, is to create demand for it, even when it is not listed. One would have come across some projects where those who do not have the tokens might start asking where it is sold so they could buy. This is one of the ways one which the price van increase and if there is nothing of such, the reverse will be the case.

To me the most important factors that influences the price of an altcoin are utility and the actions of the dev team.

If the dev team premines and dumps or abandons the project it's already doomed.

A scam coin will never be anything more than a scam coin. You can pretend a coin has utility and partnerships for some time but the truth will eventually come out and the bubble will pop.

1 altcoin cant affect the price of other altcoins and only bitcoin can do it.

The condition you mentioned is what happens to altcoin that just entered the exchange. Sales that are not balanced with demand cause prices to decrease many times and are very rare in other popular altcoins like the top 10 altcoins.

Although bitoin can affect the price of altcoin but forgetting the latest developments in which you invest is also not something that can be done. There are conditions where events can be different even though the price of bitcoin goes down and in many cases like altcoin succes listed to the top exchange, the price can change.

Trading affect the crypto prices as well, especially one who tries to sell the market for short time if there are more traders like this which could create an impact on the prices which results in bump or dump on the particular coin.And more importantly anything which affects the price of bitcoin will affect the whole crypto market as well.So as an investor its better to keep an eye on the bitcoin related news rather than looking for every coins development.

Supply and demand will be the most important factor for cryptocurrencies, which will help prices rise or fall in the long run. In addition, news also greatly affects the price of cryptocurrency, if a project offers good news and cooperates with major partners because its price will surely be pumped strongly and if there is FUD, prices will quickly fall to the bottom

factors that greatly affect the price of cryptoqurrency such as demand and supply in the market. this often happens in the market, on the other hand negative news about the market and the global financial crisis is also one of the factors that can influence it.

true it does affect the price of the cryptocurrency itself, but there are also other factors that have an influence on the price development of this crypto money including, the world economy and international security

Utility is the main factor. Without it, price will be the subject of speculation

I choose utility as the number factor above others, let's be realistic and keep fake pumping of price and bot trading aside, what will make a price if a coin/token increase other than utility,  and without utility there will be no demand,   will anyone demand for something that is not useful in anyway?
So my first factor to affect price will be utility,  once there is a use case for a token, there will be demand for it and it will affect the price positively. This the case with 99% of token in the market, no actual and physical use case, the price are just being pumped by exchange.

Agree new development achieve will help the price increase and to be known by other traders.

If they have news about the project achievement and posted in popular crypto news website like cointelegraph  and other popular crypto news . The same if they release negative news it will also affect the price of coins in negativeway  .

That's right, if FOMO happens then people will be competing to buy so it's make the Crypto prices increase. Indeed, Rumor become one of the factors that can make the Crypto prices go up, especially if a rumor is spoken by an expert in the Crypto world, then I'm sure the Crypto prices will quickly increase.

it also includes factors that can affect the cryptoqurrency industry, and several other factors such as negative news about the market, corona outbreaks and lack of project investors

I think some of my factors that can affect coin price are:
Reputation of the team behind the project,
Following road maps and successfully executing it without giving failure excuses.
Been traded on reputable exchange with good liquidity in addition to your above mentioned factide

Maybe what you meant is buy rumors and sell the news. This is not a good basis for me, why would you used something that totally depend on hype. I know many have been fomo or fud on these news, but you as a trader? Would you used it? Its like telling me to cheat on exam day than rather study and be ready for it.

All OP mentioned are the basics but totally attached a factor on market price. Utilities are also important cause we can see the usefulness of such project and why would investors should invest on that.

The total supply doesn't matter a lot when the team can do the best to develop the product. I should remind you that when the developer was doing a proper development and the people will also join in the market whatever how much total supply that already issued.

The OP missed this very important point.
Rumours alone can make big changes to the market. We must be very familiar with this term: Buy the rumour, sell the fact. This news and rumours can lead public opinion to be interested in what is happening and discussed. This can affect one's psychology, can cause FOMO too.

A lot depends on the team as well, how well they understand tokenomics and their own token strategy, all the factors including exchange listing, circulating supply and team percentage locked for atleast 2 years with buy back and burning of tokens are all small factors that effect the price of crypto and only a competent team can come up with a strategy and planning that covers all these aspects.

It's true, It can also make a hype into the market that could possibly make the price go higher because of the possible demand that the hype can make. This is why an update on a project is important because it affects the price of token's value if it successfully built a hype on the market.

So far from the analysis that I have done in cryptocurrency to be able to influence the cryptocurrency price movements, it is usually influenced by global economic conditions, total supply and news about its development in several media.

The cryptocurrency has been known as a news pushed cryptocurrency from the right beginning. We have seen and hears how news especially has taken the price of cryptocurrency from nothing to something, also, some news are detrimental to the well being of the cryptocurrency. So, the most effective factor that I see as most effective is the news, which has been helping the growth of cryptocurrency. Many came to know about cryptocurrency through the news while others quit through news too.

At first, the most important thing is to get listed on top exchanges: Binance, Huobi, Bitfinex.
This bring enough credibility, volume and assure you, that the token will visible for many crypto traders, what will lead into pump. 

Basically that idea works by spreading the news to the various sites or even forums to make the readers aware about our coin that has been getting a good performance and it still continues, that will create massive awareness and the result will be like what you have already said to make FOMO happen and then there would be a  big pump like happened with bitcoin. Good news means people will buy-in

This is the core reasons why it is made important that as a trader you must be able to understand the emotions in the market as it guides your actions.
Sometimes, you buy the rumors and sell the news, sometimes the news is bought and rumours sold, it is a popular quote.

One of the most important ways to make profit is making the right call; do your own research, understand the effects of impending news / rumours, and let it guide your move.

yes some of what you mentioned is true, that there are various factors that can affect the price of crypto money and as it is today the corona outbreak has also affected the situation of the crypto market. but the main thing is demand and supply in the market, besides that negative news about crypto can also have a negative impact.

I think these several factors affecting cryptocurrency prices are interwoven. In addition to what other respondents have mentioned, government policies is also a major factor.  Cryptocurrency have lost some ground and slow in adoption because of some policies of government of different countries against or not in total support of it.  If government of some countries give room or more rooms for the thriving of crypto, definitely the price is going to improve and vice versa.

I think hacking and fud can also affect the prices of cryptocurrencies. This is evident in a lot of projects that died after being after by hacking and couldn't recover and had to stop all together. Also, Fear, Uncertainty and Doubts (FUD) is another factor that can greatly affect the prices of cryptocurrencies. Once this happens, emotions play in leading to holders dumping their holdings leading to major market crashes. Several projects have had to face this factor in the past, while some came out stronger, others weren't that lucky.

I have seen a lot of pump and dump projects in the past, and they really did good job in making promises, giving false hopes to its naive followers and deceiving them with potential updates and progress but later on didn't deliver their objectives. We have no idea when will they stop their price manipulation as they have the full control of it. So if you are a holder, you have to be very vigilant with their movements, better to sell while you are still in profit, don't wait for it to drop its prices where you have no hope of returning to what it was.

This is 100% true, news/rumor has a lot of impact on in crypto world. Imagine a dead coin making a news about getting listed on  a big exchange including some partnerships, believe me, it's going to hit its ATH or more before it get listed there.

I also see events as a way of keeping the community active and price normal.

Pump and dump kills the price and also not good for projects. Once community notice this, they spread the news and it's going to have a negative effect.

This is true; to chip in my own opinion, I think supply and demand works well when the coin have a good utility, when something is not being demanded it has every tendency of becoming worthless, therefore when a coin have good utility as a result of the efforts of the team via working products, then the coin will be in demand. Also another factors is panic and fear, a good Illustration of this is when the pandemic was announced and declared, most people panicked and sold so as to be on the safer side. In addition, I can also say news plays another huge role, it can bring about a positive change or negative impact on the prices of coins.

There are many factors. Some main factors do strongly affect crypto price, strongest first and less following as below. It's my opinion.
1. breaking news, hot rumors or hot news
2. a big update or event of a coin is coming. coin price often increase before the event and continue increasing if event is successful.
3. pumping and dumping made by crypto exchanges. they do this for profits.
4. altcoin price is affected by Bitcoin price.

most cryptocurrency prices are influenced by supply and demand. but other factors can easily influence it.
for example last March, bitcoin almost touched the price of $ 4000 because of the corona outbreak which requires many people to sell their assets to survive

Around the world, there are different takes on how cryptocurrency should be regulated. In some countries, cryptocurrency is accepted enough to be considered legal tender. In others, it is outright banned.
this is one of the reasons why crypto prices spike a lot, when we see a country banning or doing something good too cryptos the price is directly affected.

True, there are several factors that can affect the prices of cryptocurrencies. But most of them do not matter at all.

The thing that matters most in terms of cryptocurrencies are products and actual utility.

Demand will increase if a crypto project has a legit and working product which is useful in real life. Supply is usually fixed in crypto with the exception of a few coins. 

Psychology and mining problems do not matter at all if there is useful product and real-life use of tokens or coins.

The key factor without any doubt is supply and demand which can affect the crypto currency prices, then mining which is very difficult to mine at this point of time.

And yes FOMOs those who come with positive and negative news in case if the price starts fluctuating most of them will start selling their assets because of these FOMOs, we need to be very cautious to stay away from these people's..

Take note that issue on mining doesnt affect token price maybe for coins it is but tokens are nothing related to tokens since they are not used for mining.

Well other reasons are right especially on the supply and demand. Cause the more demands that the market have been experienced the more we can say that investors are popping in to join this business. Even with crisis, we can see how cryptocurrency market is unstoppable compared to stock market and thata a good sign that crypto is not risk when crisis is present.

Yeah i think supply and demand is the most contributing factor in cryptocurrency price.
Bitcoin price is high because the supply is very low, many coins lost, and the demands of bitcoin stay high.
Some coin like ethereum is different, the supply is not limited but the market cap is still high, i guess it is because there are many peoples using ethereum blockchain with eth tokens.

rumors and news to make the coin market will be visited a lot, one marketing technique that in my opinion can affect the price on the exchange. what is talked about a lot will make many people interested and want to know in advance, the bad sometimes there is FOMO with marketing techniques like this.

Those are common factors that can affect the price of altcoin, dude. I guess there are more factors other than it just like

1. Intervention by exchange site

This kind of activity will lead to the manipulation of the market this can be done also by the whales too (traders).

2. Fundamental of the team


3. Rumour and news

This is also an important part because when you were a trader before and you might have seen so many whales that were buying the rumor and sell for the news.

as we know, that the price of cryptocurrency fluctuates, sometimes above and sometimes below and certainly not unexpectedly. on the one hand There are several aspects that can affect the price of cryptocurrency currencies.
and Some factors that can affect the price of crypto such as:

1. Supply and demand
The supply and demand of all types of electronic money will affect the price. Electronic currency has a lot of supply, but demand is less, prices cannot be raised. While electronic currencies have limited supply, it is expected to see prices that increase significantly

2. Utilities
Utility is one of the most important factors when searching for electronic currencies and making investment decisions. If electronic currency solves a problem, that is, it is very useful, but it is not reflected in its price, such money is still underestimated. This is a good indicator, even if it is undervalued, but once the market begins to realize the importance of such coins, chances are the price of electronic currencies will increase.

3. Psychology
Market Positive or negative market news can also be a factor in deciding whether the price of electronic money rises or not. The reason for this is that, depending on market news, the perception of the value of the coin can change.

4. Mining problems
Increasing mining difficulties mean that it is difficult to increase the supply of coins of this type, compared to increasing demand, which can cause the price movement of electronic currencies to rise. This factor requires that you have technical knowledge about the types of coins you want to invest because this can play an important role in future price movements.