Steemit Crypto Academy Contest / S11W04 - Cryptographic News And Events .
This is @max-pro, from #Bangladesh
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Hello friends greetings to all. Hope you are all well and enjoying a wonderful new week of engagement contests. So I'm back today to participate in this wonderful engagement contest hosted by the Steemit team's very own community. The name of this contest is Steemit Crypto Academy Contest / S11W04 - Cryptographic News And Events . We all know that cryptocurrency prices fluctuate constantly. Sometimes the market goes up and sometimes it goes down. We can know these through various news. So stay with me as I discuss this cryptographic news topic in detail.
We all have more or less ideas about cryptocurrency. In fact, where do we get these ideas? We mainly get to know these through the news. The price of all digital currencies fluctuates constantly. The price of this currency plays an important role on the news. We always see or hear daily currency prices. These cryptocurrency coins are trending in the market. This cryptocurrency news is not always the same.
Sometimes there is good news. Again there is some bad news. So the price of cryptocurrency currency goes up and down by spreading these two news. Cryptocurrency prices depend on circumstances, market conditions and many other factors. The market may see a trade of rise and fall. But it is difficult to predict. It can be influenced by news in general. You can always monitor the current market situation. When a large company or investor decides to accept cryptocurrency. Then the currency price is more likely to increase on their news.
Cryptocurrency prices are not always the same. Whenever a country's government or organization prohibits currency transactions or causes problems. Then the crypto market went down due to their news. So it can be understood that the price of all cryptocurrencies depends on the news. So news drives cryptocurrency prices to highs and lows. That's why news affects cryptocurrency prices.
Technical and fundamental analysis is very important in cryptocurrency. Both technical and fundamental analysis play an important role in influencing cryptocurrency prices. Technical analysis involves studying historical price and volume data to identify patterns, trends and potential price movements. So cryptocurrency traders and investors use technical indicators and chart patterns to make decisions.
On the other side, fundamental analysis involves the evaluation of underlying factors. Which can affect the value of a cryptocurrency. Such as its technology, team, adoption, market demand, regulatory developments and macroeconomic trends. We can use fundamental analysis when we plan to invest in cryptocurrency for a longer period than the market.
The impact of each type of analysis may vary based on market conditions and the specific cryptocurrency in question. For example, major news events, regulatory changes, security breaches, or technological advances can greatly affect prices based on fundamental analysis. Similarly, technical analysis can provide insight into short-term price movements and trading patterns. So a combination of both methods is often used by traders and investors to gain a more comprehensive understanding of the market and make informed decisions.
Yes, events like massive coin sales, coin burns, and the creation of new tools for blockchain can indeed affect cryptocurrency prices. A coin sale is an increase in the supply of a coin that can decrease its price if it is sold in large quantities. Coin burning is the process of sending a specific token permanently to a location from which it cannot be retrieved. This reduces the total supply of the cryptocurrency thereby increasing the price of Token. Then the development of the blockchain can increase the price of the token. Here the blockchain can increase the price of the token by increasing the security and acceptability of the blockchain. Examples of these are given below.
| Massive Coin Sale : |
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When lots of coins are sold in the crypto market. This can then put downward pressure on prices due to increased supply. This is because the sudden influx of coins can outstrip demand causing prices to drop. For example, if an investor decides to liquidate a significant portion of their holdings, this may lead to a temporary drop in value.
| Coin Burning : |
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Coin burning is the process of permanently removing a certain number of tokens from circulation. This reduces the total supply of cryptocurrency and potentially leads to an increase in scarcity. If the demand for the currency remains constant or increases, the price may increase if the supply decreases. For example on Steemit platform when we set beneficiary to 25% @null account on #burnsteem25. Then we burn 25% of the rewards we deserve. So when coins are burned in the market the price increases.
| New Tools For a Blockchain : |
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Introducing new tools to the blockchain can affect prices in several ways. Positive developments that improve the utility, security or adoption of cryptocurrencies can lead to increased investor interest and potential price increases. For example, the introduction of smart contracts on the Ethereum blockchain has opened up new possibilities for decentralized applications. Which contributed to the increase in the price of Ethereum.
Investigating a news story affecting the cryptocurrency market. The time was 2021. Elon Musk, the owner of the popular Tesla company and the world's richest man, has announced that he has invested $1.5 billion worth of Bitcoin. The news had a massive impact on the cryptocurrency market, especially Bitcoin. After that announcement, the price of Bitcoin reached new all-time highs. Cryptocurrencies then dominated the market.
A few months later, Elon Musk announced that his company Tesla would no longer accept Bitcoin as payment. Although the value of BTC was much higher then. But after that news BTC went down a lot. So that's why the cryptocurrency market was massively affected at that time.
Also, a special event occurred in 2021 that suddenly affected the cryptocurrency market. During this time, the China National Space Administration, a community organization of natural astronomy with the Chinese government, launched a Mars mission. In this journey they send a best-crypto coin to Mars. After this incident, the price of Best Coin in the cryptocurrency market lost and it suffered. Within a few days, a price resistance appeared after the cryptocurrency market was heavily impacted and the price of Best Coin rose again.
Yes, the cryptocurrency market can be manipulated like other markets. Manipulating the crypto market is a matter of caution. Where market values are changed through artificial actions or disclosure of information to individuals or organizations. It mainly controls the price aspect and severity. As a result, the opportunity for a different person or organization may lead to profit and harm others.
Market manipulation basically refers to the deliberate action taken with the intention of artificially influencing the price or trading volume of cryptocurrencies for one's personal gain. Some common tactics include "pump and dump" schemes. Where a group artificially inflates the price of a cryptocurrency and then sells their holdings, causing the price to crash. In addition, insider trading, spreading false information, and coordinated trading by large groups can also manipulate the market.
Cryptocurrencies have large investors also called whales. They run big markets. They are known to sometimes change the market sentiment causing fear in the crypto market and selling their crypto. When someone else gets scared and sells the coin the price of the coin goes down. At that time the whales took advantage of the opportunity to buy the currency at a low price. So in this way it is possible to manipulate the cryptocurrency market.
So I am very happy to participate in this cryptographic news and events topic engagement contest. I am Inviting my lovely Steemian friends @patjewell, @waterjoe, @inspiracion to Participate in this Competition.
This post has been upvoted through steemcurator08. We support quality posts anywhere and with any tags. Curated by: @chant
U have done good job
Great post, @max-pro! You've covered some essential aspects of how news affects cryptocurrency prices and the role of technical and fundamental analysis. Keep up the insightful work! 👍
Twitter share link : https://twitter.com/Maxpro51412/status/1692039703246299242?t=qCOFoeXiKYI1as-9WM5LFw&s=19
You're right, the impact of news on cryptocurrency prices is undeniable. When a big player like a company or investor announces their support for crypto, it's like throwing fuel on the fire. Prices can shoot up like crazy. Your post was informative and I wish you good luck! 😊
Thank You Very Much For Your Valuable Feedback ❤️
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Indeed your publication is very interesting and informative it also covers the various aspects of that topic. You have explained very well And share a well written post with us. Your insights about the cryptographic news and events and their affects on the crypto currencies is totally remarkable 😄.
Thank you so much sharing your knowledge with us.
Good luck 🤞
Thank You Very Much For Your Valuable feedback.
You are always welcome brother 😊
You've done a great job explaining how news affects cryptocurrency prices and the role of technical and fundamental analysis. Keep up the insightful work! Your post was informative and covered various aspects of the topic. Good luck with your engagement contest!
Thank you so much for viewing my post and for your valuable comments on my post.
Welcome brother ☺️
Que interesante es este tema de criptomercados y todo lo que podemos aprender ello, hizo buena investigación para compartir con nosotros y por ende le deseo mucho éxito en su participación amigo .
Thank You Very Much For Your Valuable Feedback.