Steemit Engagement Challenge |S11-W4|

Today I am here to participate in the Steemit engagement challenge season11 week 4 in the #Steemit Crypto Academy . I am excited to publish my article on this week's engagement challenge with the title - "Cryptographic News And Events" Let's start,

Can news affect cryptocurrency prices?

Many factors affect the market value of cryptocurrencies. The main factors that affect the price of cryptocurrencies are demand, supply, positive news, negative news, and more. Among these, news significantly affects the cryptocurrency market prices. As a result of some positive news, it can often lead to an increase in demand for cryptocurrencies and subsequently increase market prices. For example, if renowned and stable companies adopt crypto coin or new blockchain projects are launched than there is a high probability of increasing the price or value of that coin.
Conversely, negative news, such as crackdowns on regulations, security vulnerabilities, or negative public perceptions, can result in reduced demand for cryptocurrency and lower prices. Among the various news that affects the price of crypto-currency, we can mention an announcement by Elon Musk on February 8, 2021, as a notable example. Elon Musk declared openly that the Tesla company invested $1.5 billion in Bitcoin and will accept Bitcoin as a standard of payment for the purchase of Tesla vehicles. After this news was posted, the price of cryptocurrency Bitcoin increased a lot. So we can say, news can affect cryptocurrency prices.

Between technical and Fundamental analysis, which affects the price of an asset most?

Source
Both technical analysis and fundamental analysis affect the price of an asset, including cryptocurrencies. Before I choose one of them I want to tell what technical analysis and fundamental analysis are. Technical analysis is a method used by traders and investors mainly to analyze past market data, to know preliminary prices and volumes, and to predict future price movements of any asset including cryptocurrency. The basic idea behind technical analysis is historical price patterns and trends can provide insight into future price movement. On the other hand, Fundamental analysis is a method used by traders and investors to evaluate the underlying value of an asset by analyzing factors such as financial statements, market trends, industry news, and macroeconomic indicators. This strategy is used to evaluate the long-term potential of an asset and determine whether they are overvalued or underrated. Both technical and fundamental analysis has significant rules in influencing the market price of an asset. As I mentioned before that these two methods operate in different ways. My opinion is, in the short term technical analysis affects the price of an asset most but when it is about the long term the fundamental analysis is a better option.

Events such as the Selling of coins massively, The burning of coins, creation of new tools for a blockchain, among others. Does it affect the price of cryptocurrencies? If yes then explain and give us examples

Yes, events such as the Selling of coins massively, The burning of coins, creation of new tools for a blockchain indeed affect the price of cryptocurrencies.
These events affect the supply and demand of cryptocurrencies and in a word affect the total sentiment of the cryptocurrency market. Let me explain in detail,

Sell coins massively:
When a significant quantity of coins is sold in the market, coins become over-supplied, resulting in selling pressure increasing and the price of that coin falling. When there is an oversupply of a currency in the market, buyers navigate down the price.

The burning of coins
Burning a coin is the intentional removal of a coin. As we burn on this platform. We burn 25% of the coins earned from each of our posts. Burnt coins are not refundable. Fundamentally this is done to decrease the total supply of coins in the market. Burning a coin has the potential to increase its price.

Creating new tools for the blockchain
The creation of new tools or any kind of positive development for the blockchain increases the interest of users and investors which in turn has an affect on the cryptocurrency price.

Source
I wrote at the beginning of this post that there was news that had a notable affect on the cryptocurrency market. That happened 2 years ago on February 8, 2021. The Tesla company's CEO Elon Musk announced that they had invested $1.5 billion worth of Bitcoin and plans to receive Bitcoin as a means of payment for their vichels. That news had a tremendous affect on the cryptocurrency market, particularly Bitcoin. Following that announcement, the price of Bitcoin streamed to new all-time highs, reaching over $58,000 per BTC. Endorsement from a high-profile company like Tesla has added credibility to Bitcoin as a viable investment and payment option. The news also had a spillover consequence on other cryptocurrencies, with many also experiencing price increases. Ethereum, the second-largest cryptocurrency by market capitalization, also saw an overflow in price.

Can crypto market be manipulated? Give your understanding on this

Source
Yes, the cryptocurrency market can be manipulated. Cryptomarkets can be manipulated in various ways, one of the most common and notable method is pump and dump scheme. I think you all are familiar with this term. A group of people or a single person first promotes a particular cryptocurrency and spreads various information or rumors about it to make the price go up. Then once the price rises significantly, the manipulator sells them and crashes the market for that specific cryptocurrency. A group also works to spread false information or rumors about a particular cryptocurrency, significantly affecting the value of that currency. Again, they sometimes use fake news to create panic among investors and influence them to sell their holdings and thus lower their prices. There are also some other ways manipulators manipulate the cryptocurrency markets. For example:

• Insider Trading
• Market coordination
• Liquidity pool manipulation
• Algorithmic and bot manipulation.

I would like to invite my friends @max-pro @dove11 @deepak94 to Participate in this contest.