Crypto News - A Determinant factor for market Behaviour

You may all agree with me that most happenings in the crypto market are controlled by the whales who hold large amount of bitcoin in their possessions to influence a particular country or the market in general. These whales controls the market most times against all these retail traders predictions or expectations.

Most times you'll see a drop in the market and a major surge or pump in the crypto ecosystem. This is as a result of their influence coupled with market dominance, conditions and demand and supply.

But there's more. You may not really be shocked that just a news can affect the market because it has been happening. If you can vividly recall when the bitcoin ETF came into existence in the crypto market, there was a major pump in the market which lead to the pump of bitcoin from it's original price after the new was dropped in the market.

This was SEC approved the BTC ETF. Though there wasn't a major pump as expected but it came later. The crypto market is known for its high volatility and price swings or fluctuations in seconds or short periods as the case may be.

.This volatility can be attributed to factors such as speculations in the market, regulatory news and economic trends. How important is news in the financial market?

The same way news on a normal offer positive and negative news to the public, the crypto market offer positive and negative news in its economy. It provides information that can influence an Investor's decision and behaviour including market sentiments.

• News updates us about economic conditions and government policies around the market. If a news break about a government planning to regulate ban on crypto, it can cause prices of assets to drop as Investors anticipate the negative impact that may come with it.

Take for example what happened some months ago when Nigerian government threatened to the owner of binance to place a ban on crypto in Nigeria. Knowing what this would cause, it was rather delisted in the P2P market as this affected the price of the local currency.

Days after this news, there was a major sell off from binance as people were afraid of their coins loosing on binance. They moved it to other exchanges after converting to stable coins or normal assets. This sell pressure brought about a significant drop in the market and the Market was extremely red after a long while.

This is the effect of the news by government officials in the market. Those trading actually profited by placing sell trades. **If the news in the market is negative, the market is likely to drop badly but if it's positive, it's likely to surge leading to to an increase in the price of most crypto assets.

• Positive and Negative news can shape the sentiments in the market which result to changes in an Investor's attitude toward the market or to a particular asset. Good News like the adoption of bitcoin by some major and influential countries can impact the market positively while negative news like the hack of an exchange as I earlier brought up something similar.

The news that dropped lately about Germans selling off their bitcoins brought a negative impact in the market and this resulted in bitcoin dropping from $74k to $53k. This news caused a lot of selling pressure which also added to the sentiments in the market.

• News triggers volatility in the market and helps investors navigate the dynamic and unpredictable nature of the crypto market.

News such as regulatory news which has to do with laws and government actions related to crypto can impact the market. These regulatory news may include; international developments, taxation policies, legalization and bans.

Technological developments news about upgrade in Blockchain technology and the likes can impact the market. The listing of coins on an exchange and its delisting.

In conclusion, the Impact of news in the crypto market can cause one's decision to change and can determine one's confidence in the market. It can also lead to financial losses or gains. So as an investor or trader, you need to play wisely to avoid being impacted completely negative by the news in the market.