Blockchain and Cryptocurrency Basic - The Power of News and How it Can Influence the Price of Cryptocurrencies in the Market

In the cryptocurrency space, news most especially sentiments around social media like Twitter is a huge driving factor that determines the price of cryptocurrencies. For me, I place this under sentimental analysis because it involves paying attention to what is happening around social media especially Twitter which has proven to be a main platform for crypto related news and information. So far, we have seen the influence of social media (Twitter) on the prices of cryptocurrency assets, the most recent one being the tweet from Elon Musk who has single handedly moved the market from his tweets.

• Elon musk made a tweet that Tesla has suspended vehicle purchases using BTC due to wanting to promote sustainable energy. It was a tweet that drove the price of BTC down in an instance as people began to FUD.

Tweet - Elon Musk Tweet about Tesla and Bitcoin

Tweet Source

Negative effect on the price of Bitcoin BTC

• Another recent relevant news is Binance announcing that they will be listing GYEN. GYEN has been sitting idle for quite some time but immediately Binance announced that they will be listing GYEN, there was an immediate reaction in the market and the price of GYEN went up.

Tweet - Binance to list GYEN

Tweet Source

Positive effect on the price of GYEN

• Another relevant news that affected that caused the price of STORJ to skyrocket was the coinbase listing announcement. We all know that anytime coinbase announces that they will be listing a coin, the price of that coin always go up as people will begin to FOMO. The price of STORJ went up as coinbased announced the listing of STORJ on coinbase.

Tweet - Coinbase list STORJ

Tweet Source

Positive effect on the price of STORJ