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Cryptocurrencies like any other asset are constantly subject to change. Whether they decrease or increase in price, sometimes cannot be explained. Most of the time changes happen when people sell or buy in large amounts. However, the biggest changes happen when important news comes out about them.

Why is news so effective

Let’s hypothesize and talk about what type of news can influence the price of a single or sometimes multiple cryptocurrencies. Let’s say that it is a normal day and everybody is going about their business, but somewhere in Japan, a man is robbed of his Bitcoin wallet credentials and therefore loses everything he possesses in this life. Ultimately he commits suicide and the Japanese government starts paying attention to this news. After all this the Japanese government decides to make all cryptocurrency trading illegal within the country, even VPN trackers will be installed. This obviously will immediately decrease the price of cryptocurrencies because every Japanese investor will start selling them immediately. Also, a large market will become unavailable and the cryptos will probably never recover.

That was a hypothesis of the news that can destroy cryptos. Sometimes a news analysis like the ones featured on forex calendar can have some impact on what happens with the prices as well. If for example, a credible financial analyst says that he predicts Crypto prices to fall in a month, there will definitely be some traders who will believe him and start buying them en masse. This in turn actually increases the price, therefore making the analysis influential, but actually in a completely opposite way. Almost all financial analysis articles have led to opposite results.

Why there news still around then?

Like it or not, there will always be a news coverage about financial situations in an industry. The Forex and stock industry are always subject to change and sometimes it doesn’t even need to be financially related to have an effect on the market.

For example, the latest news about Elon Musk’s fraud made the Tesla share prices Skyfall, because investors believed that the company would have less credibility and therefore fewer customers buying their cars, ultimately making the dividends smaller and at some point not profitable, so they bail out.

Same goes for cryptos. Big cryptocurrency companies go through changes all the time, therefore they may lose or gain more customers ultimately changing the whole ordeal with a single crypto, maybe all the cryptos. In this day and age where everybody is starting to feature cryptocurrencies in their business model, they become a lot more fragile to every type of news.

Casinos starting to offer their customers gambling with Bitcoin will increase demand, therefore increasing the price with it. Recent news about China bumping up electricity prices will surely have an effect on Cryptoprices because of the mines that are stationed there. Every type of news has some kind of effect on the price of cryptocurrencies. Anything that can urge an investor to buy or sell will change it one way or another.

Notice: The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.