Steemit Crypto Academy Contest / S11W04 - Cryptographic News And Events
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Hope you all are doing well and good and enjoying the best days of your life. This is me @shahid2030 from Pakistan and you are here reading my post. You all are welcome here from the core of my heart.
This is my participation in a contest Cryptographic News And Events organized in SteemitCryptoAcademy by @crypto-academy.
It's a great honor for me to be the part of this beautiful contest. I believe it's too much Important for us to know about it, at the same time I feel lucky myself to get hold about crypto and know the best about the things asked in this contest. Here I will try my best to guide the people through my blog and tell them what is the relation between events and markets movements. So let's get start.
Can news affect cryptocurrency prices? |
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Ofcourse news has a great influence on the prices of crypto currencies. It do effects the market. Cryptocurrency markets are highly sensitive to news: things like regulations, technological developments, partnerships, security breaches, and macroeconomic trends have great influence here. A good news bring a positive change (Up ward) in the market while a bad news effects the market negatively.
A news either Leads to a FOMO or FUD in the market. It means it will either gain the trust of the people or will make them afraid, and ofcourse if the buyer are confident the market will move up, or if their is fear amoung the traders, the market will go down. This market is less regulated compared to the traditional market, that's why it can be greatly effected by news.
Between technical and Fundamental analysis, which affects the price of an asset most |
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Before investing in crypto market, one should have complete technical and fundamental knowledge. He must be expert in these two. Let's see some major difference between Fundamental and Technical analysis.
Fundamental Analysis | Technical Analysis |
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Fundamental analysis focuses on underlying factors such as; finincial data of the market/stock, market sentiments and economic indicators. | Technical Analysis works on historical prices and volume patterns. |
Fundamental is for long term | Technical analysis (TA) is for short period of time. |
It has a more substantial impact as they reflect the true value of an asset. | It reflects immediate market sentiment. |
These both have a great influence on market movement. If the Fundamentals Analysis and Technical analysis both give the same results then the direction of the market is very clear. We should be clear about the next move of the market, but if the situation is different then I will go with fundamental option. It's the fundamentals news that drive the market along.
Events such as Selling of coins massively, The burning of coins, creating new tools for a blockchain, among others. Does it affect the price of cryptocurrencies? If yes then explain and give us examples |
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These events such as selling coins massively, burning, creating new tools for a blockchain have great effect on market. These are the strongest fundamentals which drive market along with it. Let me explain these three in short and brief way one by one.
Burning Of Coins: This is a positive news and it results in increase in the price of that crypto currency. Let me give an example of Shib. Back in 2021 Vitalik Buterin made the biggest burn. He received 50% of all SHIB tokens. A total of 500 trillion SHIB. He burned 410.24 trillion SHIB. It results in huge pump in the price of Shib.
Selling Of Coins Massively: This happens in the market sometimes too. Recently the crash due to LUNA is the example of it. Terra Luna stable coin UST was spelled at a huge quantity, which leads to LUNA crash it's price. It effects Bitcoin too, and took Bitcoin to $15k price range, which is the lowest in past few years.
Creating new tools for a blockchain This is ofcourse a positive news too. It improve the price of a crypto currency. Such advancement increase the trust of people on that coin.
Investigate about a news that affected the cryptocurrency market |
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I remember a news from Tesla company. I think it was back in 2021 Elon musk Twitted " We will not accept Bitcoin as payment method for Tesla". You may see the news here in screenshot, plus Elon's tweet on Twitter.
This news greatly effected BTC price and it dump from $64k level to $28k in just one day. This was a massive crash. Many of my friends lost their capital in it.
Can crypto market be manipulated? Give your understanding on this |
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Yes I believe manipulation is too much in this market than any other traditional market in the world. The whales do this job. They have proper manipulation scheme of pump and dump. In dump they do short sell their capital and in pump they go for long one. Remember they do it with proper planning and cordination. They spread false information or creating fake news to influence market sentiment.
Luna crash is the living example of it. The UST was sold in bulk quantity to depatch it's price. For bringing it to it's normal price Do Kwan had to sell his reserves in BTC. Selling of BTC in that much great amount also increased a sell pressure in market. It causes a crash in BTC price.
However, must keep in mind that manipulation can't only be caused through proper planning, infact some other factors such as technological development, market sentiments, macroeconomics trends and regulator changes can cause it too.
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This is all about my today's post, I hope you enjoy reading. You can make my research correct if I have said something wrong. See you soon with a new amazing and interesting topic till take care.
I would like to invite @katherine012 @suboohi @steemdoctor1 @aaliarubab @goodybest @mayepariata to participate in this beautiful contest |
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Your presence here means alot
Thanks for being here
Twitter promotion Check it out.
Saludos nuevamente amigo @shahid2030
Si amigo, es increíble como el FOMO o el FUD puede causar impactos en el criptomercado, alertando a la audiencia financiera y creando un descontrol.
Por eso es bueno siempre asesorarse con fuentes de mucha confianza o por cuenta propia si lo que está corriendo por noticias sea verdadero o falso, para así poder tomar una decisión al respecto si vamos a actuar en el mercado.
¡Te deseo éxitos en tu participación, Saludos y bendiciones!
I am really glad to see your presence here dear friend. Thanks for stopping by here and leaving a precious comment.
It is impressive to see your comprehensive analysis of the impact of news on cryptocurrency prices. You have explained well how positive news can trigger FOMO and negative news can lead to FUD, influencing market movement. Your insights about the effects of events like coin burning and massive selling are insightful. The example of Elon Musk's tweet causing a significant Bitcoin price drop is a clear illustration of news-driven market shifts. Your understanding of market manipulation and the role of whales is great, too. Keep up the great work!
THANK you so much dear for the nice and precious comment here. Much more love and respect.
Your post provides a thorough analysis of the impact of news on cryptocurrency prices. You've explained how positive and negative news can trigger market movements and provided insightful examples. Your understanding of market manipulation and its effects is also well-presented. Keep up the great work!
Thank you so much dear for the nice and kind words. Much more love and respect.
Your analysis of the impact of news on cryptocurrency prices is impressive. Explaining how positive and negative news can influence market movements, and providing examples, is well-done. Your insights into market manipulation and its effects are also valuable. Keep up
Thank you so much buddy. I have been in crypto for last three years. I have knowledge of these things.
Congratulations on joining the contest! Your enthusiasm for both the event and crypto knowledge is inspiring. Looking forward to your insightful blog posts about the connection between events and market movements. Good luck!
Huge respect and love brother. Such type of remarks always helps me improve myself.
Explicas claramente la influencia que tienen las noticias en el mercado cripto. Así mismo los conceptos de los análisis técnicos y fundamentales, dejando claro que son aplicables para momentos diferentes en función del objetivo del inversor.
Gracias por compartir, feliz día y mucha suerte.
THANK you so much brother for your kind and precious words. Huge respect and love.
This post has been upvoted through steemcurator08. We support quality posts anywhere and with any tags. Curated by: @chant
Thank you so much for the support. Huge respect and love.