Steemit Crypto Academy Contest Season 11 Week 04 - Cryptographic News And Events

Cryptocurrency prices can indeed be highly influenced by news events. For instance, let's consider with example the recent RSI report released on August 10th. This report had the potential to impact the cryptocurrency market, especially Bitcoin. People anticipated that if the report turned out unfavorable for Bitcoin if US govt show that inflation rate is down, its prices might drop. However, in a surprising turn of events, the report actually supported Bitcoin but not the most we can say it was normal report . As a result, the cryptocurrency market did not experience any major changes due to this report. This example identify how news can play significant role in shaping the market dynamics of cryptocurrencies .

To break it down further, think of that cryptocurrency prices is like a seesaw. News acts as a force that can tilt the seesaw one way or another other. For instance, when news suggests positive developments on ground, like institutional adoption or regulatory support, the seesaw tips in favor of rising prices. On the other hand, if negative news, such as security breaches or government crackdowns against to crypto market, can tip the seesaw towards price drops. This interplay between news and cryptocurrency prices showcases how closely they are connected.

So, remember that while no doubt cryptocurrencies are often driven by their own technological and economic factors, external factors (news) can have a substantial impact. It is like the wind beneath the wings of a kite, sometimes lifting it higher or causing it to dip. Staying informed about the latest news & its potential effects on cryptocurrencies is essential for anyone looking to understand and navigate this exciting market.

As per my research, both technical analysis and fundamental analyses play role roles in affecting cryptocurrency prices. Technical analysis means studying historical market price patterns, trading volume, and other market data to predict future coins price movements. Fundamental analysis, on the other hand, focuses on assessing the underlying value of an asset based on economic indicators , financial reports , and market trends. While they both highly contribute, the impact of each can vary depending on the as a whole assets and the market's current conditions.

Think of it like baking a cake. Technical analysis is like looking at the recipe and figuring out that the right amount of each ingredient based on past baking experiences while making cake. Fundamental analysis is similar to choosing the best-quality of ingredients that will make the cake more delicious and worth its price. For instance, let's say you are analyzing a company's stock. If its financial reports show strong earnings and grand potential (fundamental factors), but the technical charts show that a downward trend, the stock's price could still be affected. The combination both of technical and fundamental insights provides a more complete picture of what might influence an asset's price.

Events such as Selling of coins massively, The burning of coins, creating new tools for a blockchain effects crypto currency , let's break down how various events like massive coin selling, burning of coins, & new tools development can impact cryptocurrency prices.

When a large number of coins are sold all at one time at once , it can cause a decrease in the coin's price. Imagine if everyone rushes to sell their toys at a garage sale; the more toys flood in the market, the lower their prices might go. For example, if a group of investors decides to sell a significant amount of a particular crypto coin , it can create a surplus in supply, potentially leading to a temporary drop in that particular currency .

Burning coins an famous strategy , which means intentionally removing them from circulation, can have a different effect. It is like reducing the number of toys in a game, making the remaining toys more valuable. For instance, the Steemit blockchain recently initiated a "burning" of its Steem tokens. This move aimed to make the remaining Steem tokens scarcer and valued , potentially increasing their value due to reduced supply.

Moreover, when new tools are adopted for a blockchain, it can attract more users & investors. Imagine if a playground gets new swings and slides – more children might want to come and play. Similarly, the development of tools like SteemWorld on the Steemit blockchain can enhance user experience in blockchain and attract more people to the platform. This increased interest & activity can positively influence the demand for the cryptocurrency associated with that blockchain.

In summary, these events can indeed highly affect cryptocurrency prices. Massive coin selling can lead to temporary price drops due to oversupply, while coin burning can increase the value of remaining tokens by reducing (burning ) supply. Additionally, the development of new tools can attract more users, potentially driving up demand & positively impacting the price. It is like a chain reaction where different events can influence the delicate balance between supply and demand of assets in the cryptocurrency market.

Back in 2014, on February 24th, a major cryptocurrency exchange called Mt. Gox announced that it had lost around 850k Bitcoins due to a hacking incident. This shocking news had a massive effect on the cryptocurrency market. Think of it like a vault in a bank being broken into & a huge amount of money disappearing. This panic event caused panic among investors and led to a sharp decline in BTC value, dropping its price by over 30% in just a few days.

It is a bit like if your favorite store got robbed by some external force and suddenly the things you wanted to buy became very expensive. This news highlighted the vulnerability of cryptocurrency exchanges and made people worried about the security of their investments of investor . The Mt. Gox hack serves as a warren reminder that while cryptocurrencies offer exciting possibilities, they also come with risks. This event showed how news events can have a powerful impact on the cryptocurrency market, affecting prices & shaping investor sentiment.

Yes, it is possible that the crypto market can be manipulated. Imagine a big playground where kids play with toys. Now, just like some kids might try to trick others to win games by some ideas , in the crypto market, some people might try to manipulate prices for their benefit. They might spread fake news to make prices go up or down as per position ones tricking , just like pretending a new toy is super cool to make others want it more. Also, in the crypto world, there are fewer rules compared to traditional markets, making it a bit easier for some to try sneaky tricks.

But just like smart kids though who catch onto the tricks, there are ways to spot market manipulation. People who closely watch price trends & news can notice when something fishy is happening. It's important for investors to stay informed and not get swayed by sudden price swings it might be trap for them . So yes, while the crypto market can be a bit like a playground, being aware & cautious can help avoid falling for tricks and making wise decisions.