Impact of speculation on cryptocurrency price fluctuation
In business world, speculation is what every business manages is interested in ensuring its proper management as it’s has the capacity to bring down a well established business. Economics believed that price of goods and services are driven by demand and supply. To them, when demand is higher than supply, it will led to increase in price, in the order way round when supply is higher than demand, it will led to price reduction. This is an economic assumption that is generally accepted by many.
Most companies that produce goods and services that are traded in stock market ensure that their companies are always projected as healthy. The reason for this is because once the publics notice that any company is unhealthy, it will immediately affect sales in stock market. Investors don’t invest in such companies and that might leads to the collapse of such business.
All cryptocurrency prices are driven primarily by speculation and then followed by demand and supply. You will notice that each time there is clamp down on cryptocurrency by any government, it immediately affect the price of coins. The recent South Korea’s justice minister announcement on plan to ban bitcoin has led to fall of prices of cryptocurrency.
Speculation plays a vital role in determining the rise and fall of prices of coins in exchange market. When there is good news, the price of coins will start going up as more people will want to buy. When there is bad news, price will fall as many people will not have interest to buy, while some that have some quantities of coins will want to sell off.
In my opinion, the right time to invest is when there is bad news as this will mean buying at a cheaper rate.
Guys what do you think? Share your thought with us in the comment box.
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Good insght and I couldn't agree more. News lead to price determination in crypto and once bad news comes, be ready to buy. Upped
Thanks @kenhudoy, this is time to buy
Yeah
I think you outlind some good points here worthy of my 100% upvote. Keep it coming
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I like they way you use pictures in your work.
I am impress with the way you use pictures in your write up. good job.
I know that bad news have the capacity to destroy business. well writing article.@hynet
I believe that most business are driven by speculation
The rise and fall of most business is news. Speculation is powerful. nice work.
Speculations plays a vital role in rise and fall of many businesses.