Steemit Crypto Academy Contest Season 11 Week 04 - Cryptographic News And Events

Hello everyone how are you doing, I am good. Today I am going to participate in another wonderful contest where I have to share my knowledge about the given topic Steemit Crypto Academy Contest / S11W4 - Cryptographic News And Events.

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Can news affect cryptocurrency prices?

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Of course, news has an important impact on cryptocurrency prices, whether this news is positive or negative but it fluenced the market.
It has been noticed Cryptocurrency is considered such a market in which where information or new flow has a significant role in price discovery or prediction.

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In the case of positive news, it tends to increase the confidence of the investorswhich plays a pivotal role in boosting returns, while uncertainty situations develop in case of negative news.

For the largest currency bitcoins, the impact of negative news is more profound in terms of liquidity and volatility.

So it can be experienced that news has its effect on digital currency, the trend of currency moved to increase in positive informations and decreasing trend in negative news.

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Between technical and Fundamental analysis, which affects the price of an asset most ?

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Although the use of both fundamental and technical analysis can be proof helpful for making good decisions about the price or buying of the asset. For the past few decades, the most reliable method for price assets is fundamental analysis.

In the case of technical analysis, it works in a short period because it works on the principle of finding data from a limited time frame and gives an idea to identify the pattern or trend of the asset. As its technical analysis is based on the short time duration and used by the traders who wish to earn short term.

Conversely, the fundamental analysis is more reliable for taking long-term trade decisions, as it involved data from a long period or years. So, it can be concluded that it may give the best asset trade information and decisions and we can hold our asset for the long term with securities.

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Events such as the Selling of coins massively, The burning of coins, creation of new tools for a blockchain, among others. Does it affect the price of cryptocurrencies? If yes then explain and give us examples.

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Yeah, selling coins massively burning can affected the prices of the tokens. The prices in the crypto market are highly unpredictable showing falls and rise, so the trends of coins are not constant it shows fluctuate continuously.

Selling of coins massively: Being a crypto investor a trader keeps an eye watch on the coin movement, and when large investors wanted to withdraw or sell large coins from the market it leads to a fall in the price of that particular coin. Now what effect would be seen by selling coins massively obviously it leads to fall in the price of that particular coin.

For example in November 2022, the FTX badly crashed due to the massive withdrawal of coins by investors and also due to liquidity insufficiency; resultantly it leads to a decrease in tokens price in the crypto market.

Burning of coin : means intentionally removing of coin permanently and it can not reverse back. The purpose of burning the coin is to decreasing supply in the market which ultimately tends to increase the price of the coin and or cause it to be stable.

For example on Steemit a good initiative was introduced in which we used the tag of burnsteem25 and set 25% of rewards to @null. The purpose is to burn coins and remove them from circulation it would exert a positive effect on the price of steem. It can be seen we already see a pump in steem price last few month in 2023.

Creating new tools in blockchain: With the introduction of new tools from a blockchain in Steemworld would attract more users and they can experience different new features on steemit. It may only improve the working on steemit but also increase the attraction of new users.

For example, the new tool development in blockchain tends to increase in value of tokens. With more security of coins and better scalability, it would be able to improve the prices of tokens in blockchain system.

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Investigate news that affected the cryptocurrency market

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The news has a significant impact on the cryptocurrency market. Moreover, it has been observed that negative news has strongly affected bitcoin prices as compared to positive news. In the last of 2013 and the start of 2014, the chief exchange for cryptocurrency was through Mt. Gox.

About 70% of the trading of bitcoin was carried out through this exchange. Hackers access massive amounts of bitcoins about $450 million were stolen from users’ accounts, which was unfortunately. Gox shortly freezes transactions of Bitcoinon on Feb 7, 2014. It leads to a decline in Bitcoin prices in the crypto market.

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Can the crypto market be manipulated? Give your understanding on this.

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Of course, yes crypto markets can be manipulated easily by large investors because they used different tactics like pump or dump, fake information, or news which created fear in people in terms of trades.

For examplen large investors wanted to increase their assets more they started selling coins fastly, which caused a decline in the price of the tokens. When people see this situation they may start selling their coins. Large investors buy these coins again at low prices. Thus they successfully manipulated the crypto market.