Skip to content
  • Advertise

Cryptocoinblogger.com.ng

Cryptocurrency Tips

  • For Beginners
  • Investing
  • Coin Types
  • Advertise
  • Toggle search form
What Affects the Price of Cryptocurrencies?

What Affects the Price of Cryptocurrencies?

Posted on October 4, 2022October 4, 2022 By Mmadu Abuchi

There are a number of factors that affect the price of cryptocurrencies. A few of these factors are availability, health concerns, and volatility. But there are more complex reasons behind the price of cryptocurrencies. Let’s look at some of them in this article. These factors can affect the price of cryptocurrencies and make them less appealing for investors.

Volatility

Volatility is a measure of the fluctuations in the price of a cryptocurrency. It measures how far a cryptocurrency’s price has deviated from its mean over a period of time. This measure is calculated by taking the standard deviation and taking the square root of it. Volatility was extremely high in the early years of bitcoin, with daily price changes frequently exceeding 10%. Since the beginning of the rally in late 2017, however, bitcoin has shown a much lower level of volatility. Since that time, it has only exceeded 10% deviation once.

The volatility in cryptocurrency can be explained by various factors. One of these factors is the relatively new nature of the industry. Since most crypto projects are new, they are not yet fully established and still in the early stages of price discovery. Positive or negative news coverage can affect the price. Moreover, the volatility of a cryptocurrency can be correlated to its trading volume.

Availability

One of the main factors that affect the price of cryptocurrencies is availability. This is due to the fact that more availability leads to greater interest and demand. Conversely, if a cryptocurrency is not readily available, it could lead to a price crash as a result of a rush to sell. This can be the result of a problem with the cryptocurrency itself or an issue with an exchange. In addition, the price of cryptocurrencies can rise or fall depending on their utility. A cryptocurrency with a high utility value, like Ethereum, can rise in value as consumers use it for a wide variety of purposes.

The price of cryptocurrencies fluctuates due to a few factors, primarily the supply and demand. The higher the demand, the higher the price. However, there are also other factors that can affect the price of a cryptocurrency. Large players may be able to influence the price by manipulating supply and demand.

Regulation

There are a number of factors that affect the price of cryptocurrency. One major factor is regulatory oversight. While this may sound unimportant, it is a major issue that can affect prices in the short run. As a result, cryptocurrency investors should be very wary of rumors about upcoming regulatory action.

While there is no consensus on the impact of regulation on cryptocurrency prices, some experts believe that it will have a positive effect in the long run. For example, if a country or state regulates cryptocurrency, it will help to protect investors and increase investor confidence. It would also help the industry grow, since regulating it would help to build trust in the system. In addition, it could help weed out bad players.

However, there are also a number of other factors that should be considered, as well. For example, regulation should address the potential risks of digital assets, which can impact consumers, investors, and businesses. This includes risks associated with money laundering, proliferation finance, and national security.

Health concerns

A recent study examined how health concerns affect the price of cryptocurrencies. The authors found that the Covid-19 pandemic did not increase herding activity on cryptocurrency markets. However, it did influence social media networks, and Bitcoin prices were influenced. For this reason, it is important to understand how health concerns affect cryptocurrency prices.

Social turmoil

As the global conflict continues to escalate, the price of cryptocurrency is declining. Bitcoin has fallen to $36,370 from $44,125 a week ago. Against this backdrop, traditional hedges such as gold and U.S. Treasury securities have also suffered. Retail investors may also be worried about the functioning of society.

Spread the love

Facebook Comments

For Beginners

Post navigation

Previous Post: Top 5 Crypto Trading Brokers
Next Post: What Is A Blockchain In Crypto?

Related Posts

HOW TO GET A CRYPTOCURRENCY TRADER CERTIFICATION HOW TO GET A CRYPTOCURRENCY TRADER CERTIFICATION For Beginners
Trade Crypto Like a Pro: Risk Management Secrets You NEED to Know Trade Crypto Like a Pro: Risk Management Secrets You NEED to Know For Beginners
Three Aspects of Crypto Exchange Brokers Three Aspects of Crypto Exchange Brokers For Beginners
Choosing the Right Cryptocurrency Wallet: A Comprehensive Guide Choosing the Right Cryptocurrency Wallet: A Comprehensive Guide For Beginners
Where To Buy Luna Crypto For Beginners
Staking vs. Lending: The Ultimate Guide to Growing Your Crypto Portfolio Staking vs. Lending: The Ultimate Guide to Growing Your Crypto Portfolio For Beginners
Get notification emails when new blog posts are published.
Loading

Recent Posts

  • Staking vs. Lending: The Ultimate Guide to Growing Your Crypto Portfolio
    Staking vs. Lending: The Ultimate Guide to Growing Your Crypto Portfolio
  • DeFi Problems and How to Fix Them: A Short Guide
    DeFi Problems and How to Fix Them: A Short Guide
  • Is DeFi a Bubble? Honest Analysis of Decentralized Finance
    Is DeFi a Bubble? Honest Analysis of Decentralized Finance
  • DeFi Made Simple: A Beginner’s Glossary to Decentralized Finance
    DeFi Made Simple: A Beginner’s Glossary to Decentralized Finance
  • Avoid DeFi Scams: Tips to Keep Your Funds Safe
    Avoid DeFi Scams: Tips to Keep Your Funds Safe
  • How to Buy Bitcoin: A Simple Step-by-Step Guide
    How to Buy Bitcoin: A Simple Step-by-Step Guide
  • Litecoin: The Silver to Bitcoin’s Gold? A Beginner’s Guide
    Litecoin: The Silver to Bitcoin’s Gold? A Beginner’s Guide
  • For Beginners
  • Investing
  • Coin Types
  • Advertise
  • Advertise

About this Blog

Cryptocoinblogger.com.ng is a Blockchain-information-based blog that is located in Africa, operated by a Nigeria-based blogger with years of experience in information marketing across the continent of Africa. Cryptocoinblogger.com.ng writes and publishes informative guides, and tips about blockchain, this includes but are not limited to cryptocurrencies (BTC, USDT, etc), investment, and market trend in the blockchain industry. Cryptocoinblogger.com.ng  also offers cryptocurrency brands and platforms the opportunities to promote their products and services through sponsored guest postings, placing advertising banners, etc.

  • Cryptocurrency Advertising and Sponsored Guest Posting
  • Privacy Policy
  • Staking vs. Lending: The Ultimate Guide to Growing Your Crypto Portfolio
    by Mmadu Abuchi
  • DeFi Problems and How to Fix Them: A Short Guide
    by Mmadu Abuchi
  • Is DeFi a Bubble? Honest Analysis of Decentralized Finance
    by Mmadu Abuchi
  • DeFi Made Simple: A Beginner’s Glossary to Decentralized Finance
    by Mmadu Abuchi
  • Avoid DeFi Scams: Tips to Keep Your Funds Safe
    by Mmadu Abuchi
  • How to Buy Bitcoin: A Simple Step-by-Step Guide
    by Mmadu Abuchi

Copyright © 2025 Cryptocoinblogger.com.ng.

Powered by PressBook Grid Blogs theme