Did you know, crypto price fluctuations play an important role for investors in determining the best time to buy crypto?
Keep reading to find out the factors that affect the price of cryptocurrencies.
1. LAW
The price of crypto is very responsive to any decision on the law of cryptocurrencies.
For example, the issue of Securities and Exchange Commission (SEC) hit Ripple causing XRP to drop more than 30% in 24 hours.
2. CURRENT ISSUES
Crypto currency is considered as an alternative to fiat currency whose value is supported by the government.
When investors are unsure of fiat currencies due to the political or economic crisis, they will turn to bitcoin and other cryptocurrencies, causing prices to rise sharply.
3. SPECULATION
Through speculation, investors are able to make a profit by selling assets when prices rise sharply.
However, short-term buying and selling will have the opposite effect on the market.
4. GODAM ACTIVITIES
System hacking activities, cryptocurrency exchanges or wallets have the potential to depreciate assets.
For example, the hacked Ledger wallet, involved 270,000 personal information of users recently, causing Bitcoin to drop 10% from the highest record.
5. NEW CURRENCY
As one currency becomes popular, driving more capital inflows and causing price spikes, the introduction of new currencies is seen as having the potential to have a volatile effect.
Therefore, investors need to do research first and be careful before making an investment!
