What Moves Crypto Markets?
Supply and demand drive crypto markets. Unlike traditional currencies, they aren't controlled by governments or banks, which makes them more independent. Several factors affect their value:
- Supply: The total number of coins and how they're made, lost, or destroyed.
- Market Perception: People's views on how valuable the coins are and how this changes over time.
- Media Influence: How the media talks about a crypto-asset and how much attention it gets.
- Compatibility: How well a crypto can be used in existing payment systems.
- Significant Events: Important happenings like upgrades, hardforks (blockchain network change), regulatory changes, security issues, or economic problems can strongly impact the market.