Recommended for you

Start writing a post

News

What causes cryptocurrency to rise and fall

Introduction

GBOB

Mar 25, 2022

What Makes Cryptocurrency Go Up or Down?

what causes cryptocurrency to rise and fall

What causes cryptocurrency to rise and fall

The crypto market is extremely volatile. It's now no longer unusual for Bitcoin (CRYPTO: BTC) to rise or fall in price by 5% or maybe 10% on any given day. Small cap cryptocurrencies may have even more volatile price swings. After reading this article, you may will have a better understanding on the price swings and reallywhat makes crypto currency rise and fall.

Crypto 101

Cryptocurrencies are not issued by a central bank or a central government. Instead the crypto projects are run on the blockchain. Each token has its own community of supporters that want the project to succeed. While other people are trading a token to make money. The main thing that makes the price rise and fall is support and resistance. When buyers believe the price should not go any lower they buy the token. When sellers believe the price is too high they will drive the price down.

The entire crypto ecosystem supports itself on the blockchain. And the price of each token can also get affected by daily news, or other things that can drive the price up or down.

Cryptocurrency Price Swings Supply and demand affect the price of cryptocurrencies. For example, if there is a drought, the charge of grain and convey will increase, while if there is too much grain the price of grain will decrease. The same concept applies to cryptocurrencies.

Some cryptocurrencies have mechanisms that "burn" present tokens to save the circulating supply. Burning a token is also done to control inflation and may affect the price. As more people want to buy crypto tokens the price will continue to rise and as more people panic sell tokens the price can go down as fast as it went up. So there is no one reason why the price goes up or down.

Whats more important is watching the news to see what’s going on in the crypto space so you can make an informed decision before you buy or sell crypto.

Conclusion

As a result, the price isn’t always fixed. Broader adoption of a cryptocurrency will increase the price as well.. For example, while institutional buyers buy Bitcoin, the price accelerated substantially.

Report this Content

This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.

Entertainment

25 Beatles Lyrics: Your Go-To Guide for Every Situation

The Best Lines from the Fab Four

SUNY Binghamton

36864

Wikipedia Commons

For as long as I can remember, I have been listening to The Beatles. Every year, my mom would appropriately blast “Birthday” on anyone’s birthday. I knew all of the words to “Back In The U.S.S.R” by the time I was 5 (Even though I had no idea what or where the U.S.S.R was). I grew up with John, Paul, George, and Ringo instead Justin, JC, Joey, Chris and Lance (I had to google N*SYNC to remember their names). The highlight of my short life was Paul McCartney in concert twice. I’m not someone to “fangirl” but those days I fangirled hard. The music of The Beatles has gotten me through everything. Their songs have brought me more joy, peace, and comfort. I can listen to them in any situation and find what I need. Here are the best lyrics from The Beatles for every and any occasion.

Keep Reading...Show less

best beatles lyrics

Student Life

Waitlisted for a College Class? Here's What to Do!

Dealing with the inevitable realities of college life.

Smith College

100085

college students waiting in a long line in the hallway

StableDiffusion

Course registration at college can be a big hassle and is almost never talked about. Classes you want to take fill up before you get a chance to register. You might change your mind about a class you want to take and must struggle to find another class to fit in the same time period. You also have to make sure no classes clash by time. Like I said, it's a big hassle.

This semester, I was waitlisted for two classes. Most people in this situation, especially first years, freak out because they don't know what to do. Here is what you should do when this happens.

Keep Reading...Show less

waitlisted

Recommended for you

What causes cryptocurrency to rise and fall

Introduction

Conclusion

Subscribe to our Newsletter

The Best Lines from the Fab Four

And in the end, the love you take is equal to the love you make

The sun is up, the sky is blue, it's beautiful and so are you

Love is old, love is new, love is all, love is you

There's nowhere you can be that isn't where you're meant to be

Life is very short, and there's no time for fussing and fighting, my friend

He say, "I know you, you know me", One thing I can tell you is you got to be free

Oh please, say to me, You'll let me be your man. And please say to me, You'll let me hold your hand

It was twenty years ago today, Sgt. Pepper taught the band to play. They've been going in and out of style, but they're guaranteed to raise a smile

Living is easy with eyes closed, misunderstanding all you see

Can you hear me? When it rains and shine, it's just a state of mind

Little darling, it's been long cold lonely winter. Little darling, it feels like years since it' s been here. Here comes the sun, Here comes the sun, and I say it's alright

We danced through the night and we held each other tight, and before too long I fell in love with her. Now, I'll never dance with another when I saw her standing there

I love you, I love you, I love you, that's all I want to say

You say you want a revolution. Well you know, we all want to change the world

All the lonely people, where do they all come from. All the lonely people, where do they all belong

Oh, I get by with a little help from my friends

Hey Jude, don't make it bad. Take a sad song and make it better

Yesterday, all my troubles seemed so far away. Now it looks as though they're here to stay. Oh, I believe in yesterday

And when the brokenhearted people, living in the world agree, there will be an answer, let it be.

And anytime you feel the pain, Hey Jude, refrain. Don't carry the world upon your shoulders

I'll give you all I got to give if you say you'll love me too. I may not have a lot to give but what I got I'll give to you. I don't care too much for money. Money can't buy me love

All you need is love, love is all you need

Whisper words of wisdom, let it be

Blackbird singing in the dead of night, Take these broken wings and learn to fly. All your life, You were only waiting for this moment to arise

Though I know I'll never lose affection, for people and things that went before. I know I'll often stop and think about them. In my life, I love you more

Obviously the best superpower.

There have been many lessons learned.

1. The importance of traditions.

2. How to be thankful for family and friends.

3. How to give back.

4. What the word "community" really means.

5. That it isn't about the destination, but the journey.

6. The consequences of making bad choices.

7. To trust people, until you have a reason not to.

8. To be welcoming and accepting of everyone.

9. How to be my own, individual person.

10. How to work for what I want.

11. How to be great at giving directions.

12. How to be humble.

13. To be well-rounded.

14. How to be great at conflict resolution.

15. The beauty of getting outside and exploring.

16. To be prepared for anything.

17. That you don't always have to do it alone.

18. How to be creative.

19. To brush off gossip.

I have never been so thankful to know you.

Dealing with the inevitable realities of college life.

Don't freak out

Email the professor

Attend the first class

Keep attending class

Have a backup plan

Remember that everything works out at the end

Trending Topics

Top Creators

Trending Stories

Best of News

Subscribe to Our Newsletter

Facebook Comments

Subscribe to our
Newsletter