Steemit Crypto Academy Contest / S11W04 - Cryptographic News And Events Cryptographic News And Events

How are you? I hope that everyone would be safe and sound and with this interesting topic I would like to share the best possible answers with all of you so let's start.

Definitely there are different uses that run in Crypto world so news can affect the cryptocurrency prices also. There can be two type of news. One is positive news and other one is negative news if I give an example then we can say that new partnerships or new adoptions by major companies that can be a major cause to keep the investors in confidence and as a result prices also boost in return due to the effect of that positive news and on the other hand if negative news spread then price decreases because it create uncertainty among investors. It is very important to stay informed about latest news regarding Crypto world.

When any big company or any famous investor spread a news that they are going to adopt any cryptocurrency so this becomes a kind of positive news because it also urge other investors to increase their Crypto assets and eventually price of cryptocurrency also increase in this way. So in this way positive news have a great impact on Crypto world in terms of increasing the price of cryptocurrency and affecting market in positive way.

When a big investor or a big company spread a news about crash of any cryptocurrency or spread the news about the blockage in transaction of any cryptocurrency due to any crackdown in Crypto market then it becomes a negative news in Crypto world and investors don't remain much confident while investing and they starts to withdraw their assets so that they may avoid any loss in their future that's why a negative news have a negative impact at Crypto world by decreasing price of cryptocurrency hence proved from this example.

In conclusion I want to say that any news either it is a positive News or it is a negative news will surely affect the cryptocurrency and the prices of cryptocurrencies also affects and influence significantly due to news because market is always sensitive to news events and if there would be positive news events then there would be increase in cryptocurrency prices and if there would be negative news events then there would be decrease in cryptocurrency prices so the relationship between positive and negative news is direct with cryptocurrencies.

If we talk about technical and fundamental analysis then we cannot say that one of them have impact on the price of an asset and other don't have any effect so I can summarise it that both have affect on the price of asset but sometimes we cannot clearly determine that which one have the greatest effect than other.

If we talk about technical analysis then to study historical price patterns , trends and different indicators that can predict the future price fall under a category of technical analysis. There are some traders who just rely upon technical analysis and use different charts ,graphs and mathematical equations to have a know how of different patterns and for making decisions for their trading because they also believe that historical price data can provide them insights about future.

If we talk about fundamental analysis then these type of analysis have most of the focus in the evaluation of intrinsic value of assets by keeping in mind factors like company financials, industrial trends and macro economic indicators and people who do fundamental analysis have a belief that they can understand that true value of an asset when they will determine revenue , earnings and growth potential of an asset. These are the factors that can really impact an asset for a long term.

Merits and dismerits are present in both type of approaches but one thing that we can say about both type of analysis is that technical analysis can be a good thing if someone wants a short term trading and if someone wants long term investment then he should go for fundamental analysis. Price of an asset is determined and influenced by multiple factors which include different economic conditions market sentiment as well as behaviour of an investor also matters too much.

If I talk about news and events that what they have impact upon both type of analysis so yes news events are also impactful on both type of analysis because when a positive earning report or a major partnership announcement disclose as a result of a positive news then it impacts both technical indicators as well as fundamental factors so it can also be taken as an example that how news and events affect technical and fundamental analysis.

Every trader or investor who wants to be successful and wants to make successful decisions always go through from both approaches because he consider that if he will go through both approaches then he will gain more comprehensive understanding regarding the market and in this way he will also improve his trading outcome.

Events that have been explained in the above questions like selling of coins burning of coins and creation of new tools for the blockchain can definitely affect the price of cryptocurrencies and let me share everything with example.

1. Selling of Coins Massively:

If I talk about selling of coins then when large number of coins sold out in market then prices have a downward pressure because supply increases without an increase in demand so it leads to decrease in price. If I give an example then let's suppose that if there is an investor or a holder of some particular cryptocurrency and he decides to sell a particular cryptocurrency from significant portion of his holdings so when he will decide it then it will cause prices to drop because other market participants will also follow him and starts to sell their coins or assets as well.

2. Burning of Coins:

Before discussing it first of all we should know that what is burning of coins so it may be defined as destruction of some number of coins in circulations intentionally. If we talk about reason to do it then it could be due to reduction in the total supply of cryptocurrency to potentially increase the scarcity of it , to effect the price of that cryptocurrency in a positive way.As an example I can talk about Cryptocurrency binance coin in which there is coin burning occurs regularly and there a portion of supply is removed for permanent time from circulation. It has been seen that is a contribution for the increase in price of BNB with the passage of time.

3. Creating New Tools for a Blockchain:

If some development or introduction of new tools happens in a blockchain then it also significantly influence the price of cryptocurrencies. As an example let's suppose that if there is a blockchain in which there is a release of a new feature for the enhancement of the functionality of blockchain then it will attract many users as well as other developers on the platform so in this way it will be an increase in the adoption so price of that associated cryptocurrency with the blockchain will also Decentralized finance was an application at Ethereum blockchain that's significantly contribute to increase demand of ETH ....

It is most important to say that effect of all these events on Crypto price can also be very when we keep in mind different factors like market conditions investor sentiment and other trends so it is important to consider fundamental and technical factors both for the analysis of price movements in Crypto world.

I search and explore after a lot of research about one of the news that significantly affect the cryptocurrency market so below I am sharing that news with you

Elon Musk is a well known name who spreads a news and announcement that Tesla would no longer except bitcoins for payment for its electric vehicles and that news was formally announced on 12th of May in 2021 year so after that news there was a shark decline in the price of Bitcoin and definitely in the price of many other currencies also.

Elon Musk cite some other environmental concerns as a reason about Tesla decision, and he also state that mining of bitcoins requires too much energy and that energy almost comes from non renewable sources and after that announcement there was a leading wave about selling in market as a reaction of different investors and traders to this news.

If I talk about drop in the price of Bitcoin then it drops more than 10% in the immediate aftermath of Elon Musk news. Other cryptocurrencies as a result also have significant decline and that news event highlight that high profile figure like Elon Musk and his announcement can have a very significant impact on investors and as a result on overall cryptocurrency prices.

This is I have shared one real news event in Crypto world which is very recent and I know it also and other news events like regulatory developments government announcement and other major hacks in Crypto world also affect cryptocurrency price significantly.

Financial market can be manipulated so in the same way krypton market can also be manipulated. It is true that cryptocurrency are decentralised because they operate on blockchain technology but still there can be some factors that can create opportunities for them to be manipulated.

Pump and dump schemes

In the Crypto market there is a form of manipulation which is known as pump and dump and in these schemes there are group of individuals that artificially responsible for the inflation of particular currency when they spread some positive rumours or through coordinated buying. When prices reach at certain level then manipulators sell their holdings which cause price to plummet.

Spoofing and wash trading

Spoofing and wash trading use is another form of manipulation in Crypto world because spoofing involves the placement of large orders for buying and selling by keeping in mind the intention of creating a false impression of market demand and supply. When a trader simultaneously buy and sell the same cryptocurrency to create a sense of illusion among others then wash trading occurs so it's a kind of illusion to give a deceive to other participants in Crypto market.

Manipulation through social media

Social media can also plays a great role in the manipulation of Crypto market when many of the influential individuals like Elon Musk tweets or spread some statements publicly as I have also share a statement of Ellen Musk in the news that I investigated above. As an example I can say that a single tweet from Elon Musk can express support or criticism for a particular cryptocurrency and in this way their maybe significant price fluctuations either in the form of pump or in the form of dump.

Manipulation through trading bots and algorithms

By the use of trading boards and different algorithms manipulation can also occur in Crypto market because both are the automatic systems that can execute trades at high speed and in larger volume so in this way they can create artificial market movements.

Some regulatory factors

There can be some regulatory factors that we play a contribution for manipulation because lakh of comprehensive regulations in Crypto market allows illicit activities to takes place in a easy way. Market manipulation and fraudulent things can occur origin of absence of strict enforcement and oversight.

In conclusion I want to say that it is true that Crypto market can also be manipulated through many factors like pump and dump, spoofing and wash trading as well as by the influence of social media and different mathematical algorithms and bots but it is important to note that investor should practice some questions and should do a proper research before making any decisions so that they may stay informed about real news and be aware of potential red flags.

I want to give an invitation to @josevas217 , @harferri , @sduttaskitchen , @deepak94 , @suboohi to participate 😀