Steemit Crypto Academy Contest / S11W04 - Cryptographic News And Events
Hello Steemians! Well come to my post. How are you all? I hope that you will be doing well. I'm also fine and enjoying my day. Today I'm here to participate in this Steemit Engagement Challenge Season 11 week 4 in the Steemit Crypto Academy. The topic of this challenge is "Cryptographic News And Events". So let's start.
As we all know that the crypto market is highly volatile and fluctuating so a little news can affect the prices of crypto currencies both positively and negatively ways. But it all depends upon the news rather it is positive or negative. So that is why the crypto market is considered as very sensitive to news and they have a huge impact on the prices of crypto currencies and the sky rocketing pumping and dumping situations keep on happening within the crypto market due to news.
Well! If we talk about the news so there are two types of news which surrounds the crypto market the one is positive news and the other is negative news. The positive news are that when any of big investor or company announce that they are going to adopt any of crypto currencies so that thing urges the investors to increase their crypto assets within the specific crypto currency and eventually the prices of crypto currencies increase. So we can say that the positive news increase the crypt currency prices and affect the market positivity.
On the other hand when the negative news spreads about the crashing of any of crypto currencies or about the blocking of transactions of crypto currencies in Any of country or due to any crackdown within the crypto market. Then the investors start withdrawing their crypto assets from the market to avoid more loss. So that thing affect the crypto market negativity and thus the prices of crypto currencies decrease.
The both fundamental and technical analysis can affect the prices of crypto currencies but it all depends upon the trends of market. Usually in the technical analysis we use the historical values the trading volume i.e (how much that Currency is traded in the recent years) and other data to predict the future of specific crypto currency. More ever we use different charts and patterns to predict the prices of that specific crypto currency and the history may repeat due to huma phycology.
It is true that the technical analysis provide us some useful insights but we can't totally depend on the basis of that data and predict the future of any specific crypto currency this is because the market trends may change due to several reasons and our predictions may go opposite to our expectations.
On the other hand the fundamental analysis based on the evaluation of intrinsic values of a specific crypto currency. In this we check different factors such as market trends the supply of any specific crypto currency within the market and the point of views of management of that crypto currency. So now we can realize that the both fundamental and technical analysis has a huge impact on the prices of crypto currencies.
Usually it has seen that the investors who want to invest in cryptocurrency for a short interval of time use the technical analysis to predict the future of that crypto currency in which they are going to invest. On the other hand the investors who want to invest big amounts and want to invest for a long period of time in the crypto currency they do through investigation with the help of fundamental analysis and then they invest in cryptocurrency.
Yes of course the events such as selling f coins massively the burning of coin and creating new tools for a Blockchain can affect the prices of crypto currencies. As I mentioned above the crypto market is highly volatile and fluctuating and thus the prices of crypto currencies within the market don't remain the same and it keeps on increasing or decreasing. Let's discuss about the affects of each on the crypto currencies.
1.Selling Of Coins Massively: The sailing of coins massively means that increasing the supply of coins within the market. So if an investor started sailing all his cryptocurrency assets such as any specific coin it cause a major decline in the price of that crypto coin thus its price decrease.
Example: In the last year May 2022 when the Luna coin was crashed and suddenly the people started sailing all their Luna coins. Due to which the supply of that coins increased massively within the market which causes massive decrease in the price of that coins.
2.Burning Of Coin: The burning of coins means that removing of coins from circulation. And that thing reduce the supply of coins within the market and due which the price of that certain coin remain constant or may increase.
Example: The burnsteem25 is the latest initiative which is introduced by the Steem Blockchain. In this the users sets 25% from their earnings to @null account which means that the 25% from their total earnings from a random post would be burn and the coins are removed from the circulations. This thing has brought many positive impacts on the price of Steem coins and some positive fluctuations have been witnessed in the previous months from the Steem coin.
3.Creating New tools From A Blockchain: Yes the introduction of new features and making some improvements within a certain Blockchain can affect the prices of native token of that Blockchain. It also improve the overall growth working and visibility of that Blockchain.
Example: According to me there we can also take the example of burnsteem25 program. This is because it was a new tool which was introduced by the Steemit team recently. And you are well aware of the results of that tool and due to the addition of burnsteem25 the price of Steem token pumped (increased) several times in the recent months.
Yes there are several news and occasions that affected the crypto currency Market in both ways negative and positive. So the CEO of binance Mr ChangPeng Zhao who is also known as CZ has been invested in FTX exchange. Then suddenly in the Year November 2022 he decided to withdraw all his investment from the FTX he spread that news all around. Due to this the FTX market got down and the people started withdrawing all their assets from the FX Tokens.
So that news put negative impacts on the crypto market and the panic increase in the investors because the FX is a Crypto currency. Due to that news the market was already crashed and the people started withdrawing and sailing all the FX tokens which cause more decrease in the price of that token. And due to this the FTX exchange has bear a huge loss thus the market got more down.
Yes the crypto market can also be manipulated. This is because the crypto market is a market just like other trading market but the main difference between the crypto market and other Markets is that in crypto market we hold our assets in the form of any digital currencies but in the other Markets we hold our assets in the form of Cash. Overall there are hundred percent chances of manipulation in crypto market.
The people in the crypto market use different types of techniques to manipulate the market. As in the above section we have discussed the the crypto market usually driven on the News And the news has a big role in creating manipulation in the crypto market. Sometimes they spread the fake news of increase in the price of any crypto currency to make the people fool Because it has nothing to do with reality. So the people start buying that currency and after some days Their prices fall and thus people suffer loss.
The big investors who usually called the Whales in crypto market has also a major role in manipulating the market. Sometimes they create FOMO situation between the people with different strategies and they sell their crypto assets at a high rate to the small investors and then the prices of that crypto currency may falls after some days and then they buy again that currency from the small investors as at very low prices.
In results the trading within the crypto market is not everyone's cup of tea this is because the crypto market is highly volatile and fluctuating and sometimes you may face the manipulation so the through knowledge investigation and the Brief information about crypto market and crypto currencies is necessary for everyone especially for new traders of crypto market.
So friends that was my entry about that challenge and I hope that you will like it. Now it is time to say goodbye to everyone and I want to invite my friends @casv @suboohi @janemorane and @patjewell to take a part in this amazing contest of Steemit Crypto Academy.
Certainly, it seems like you've presented an in-depth discussion about the impact of news and events on cryptocurrency prices, technical and fundamental analysis, and the potential for manipulation within the crypto market. Your analysis highlights how positive and negative news can influence crypto prices, the significance of both technical and fundamental analysis, and how events like selling coins massively, coin burning, and introducing new blockchain tools can affect crypto prices. Additionally, you've provided an example of news affecting the crypto market and expressed the possibility of market manipulation by various players, emphasizing the importance of knowledge and investigation in the volatile crypto market. regards 😊
Yes indeed that was my little knowledge about that topic and I'm very glad to see that you have found it valuable for you 😻. I really appreciate your kind words. Thank you so much for visiting my post and leaving a beautiful comment ☺️.
I'm glad my knowledge resonated with you. Your kind words mean a lot. Thank you for your visit and lovely comment back ☺️
You are always welcome dear ❤️
This post has been upvoted through steemcurator08. We support quality posts anywhere and with any tags. Curated by: @chant
You've provided a comprehensive analysis of the impact of news and events on cryptocurrency prices, discussed technical and fundamental analysis, and explored potential market manipulation. Your detailed explanations and examples showcase your understanding of the topic. Great job!
Thank you so much brother for your lovely comment 😊
En este mundo criptográfico debemos estar muy atentos y nutrirnos de mucha información antes de tomar una decisión evaluar bien y saber qué tipo de análisis es el que nos conviene para la inversión que vamos a realizar.
Teniendo en cuenta que hay muchas formas de manipular el mercado debemos estar conscientes de todo lo que necesitamos aprender antes de navegar entre las criptomonedas.
Te deseo mucho éxito en tu participación.
Yes you are right 👍 and I totally agree with your opinion this is because investing or trading within the crypto market is not easy for everyone and we have to do our own research and get knowledge before investing or trading. So in this we can avoid manipulation.
By the way thank you so much for your lovely comment 😊
My husband is a trader, and I when I ask him how the market is doing, he will always reply with an up or a down. These days, he hardly ever tells me that the market was stable for the day.
" Volatile and fluctuating" are the words for all the markets, crypto currencies included.
How I wish we had a crystal ball.
Good luck with the contest, and thanks for the invite!
WOW glad to read that your husband is a trader of crypto market 😀. Yes actually the crypto market isn't stable and keep on fluctuating by the time.
Thank you so much Mam for giving your precious time to my post and leaving a beautiful comment ☺️😁
Nope, he is not a crypto trader. He trades the all shares.
But in the end, it is basically the same thing. (•ิ‿•ิ)
As for the comment to your post... pleasure!
The comparison you drew between fundamental and technical analysis was insightful. It's true that while technical analysis is a valuable tool, it's not foolproof. Market trends can change for reasons beyond historical data, as you mentioned. On the other hand, fundamental analysis, based on the intrinsic value of a cryptocurrency, seems more holistic. Overall, it was an interesting read. Good luck in the contest! 😊
Thank you so much brother for visiting my post and leaving a beautiful comment ☺️
You are welcome. 😊
Hola Abdullah 😊
Recuerdo ese gran escandalo con CZ, la verdad esas personas saben como y cuando manipular el mercado a su favor y hacerse mas y mas ricos, por eso debemos ser cuidados en donde nos estamos metiendo y siempre tener presente que cualquier cosa puede pasar y que eso esta fuera de nuestro alcance.
Como siempre una genial participacion, te deseo suerte y exitos 😊
Oo yes mostly rich people use different tricks to manipulate the market and then earn huge profits. In this regard they don't think about the small investors and their loss in cryptocurrency.
Thank you so much for your valuable comment ☺️
Stay blessed 😇
from your post I can understand that you have a good knowledge about cryptocurrency and Crypto world as well as impact of news on cryptocurrency prices because just like before you have shared your valuable insights about the respective topic and you show us by a practical example by investigating an example related to cryptocurrency news effects on cryptocurrency
Good luck
Yes I still don't have enough knowledge about crypto currencies and I'm still learning 😁. By the way thanks a lot for lovely comment 😊
I wish you good luck for exploring and gaining maximum knowledge in your future about Crypto and wishing you good luck with a lot of prayers
Thank you so much brother for your precious comment ☺️
¡Gracias por tu invitación amigo!
Has dejado claro que el mercado cripto naturalmente volátil es sensible a las noticias buenas o malas, incluidas las falsas y los tweets de Elon Musk. Ja ja
El interés por aplicar el análisis técnico o el fundamental dependerá del objetivo que el inversor persigue a corto plazo o largo plazo o ambos.
Es impresionante la caída que muestras de la FTX, no había tenido la curiosidad de verla. Es algo que inquieta mucho que con un abrir y cerrar de ojos ocurre un acantilado como ese.
Excelente post amigo, suerte y mucho éxito.
¡Un gran abrazo!