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Major changes in the cryptocurrency market are often associated with high-profile newsworthy events. The cryptocurrency market depends on the news, like no other. And its participants use this dependence: some try to collapse the value of assets, while others, on the contrary, increase it. Let’s see how the news affects the cryptocurrency in Ukraine and the world.
Factors affecting cryptocurrency growth
There are many factors, contributing to the growth of the cryptocurrency price. If the value of shares is more influenced by macroeconomics, then it practically does not affect the state of the cryptocurrency market. But the price of virtual assets may be affected by news about the possible permission to use the crypt with the national currency in some developed countries. The price of a coin can also jump up against the background of high user interest in it, especially if this interest is shown by large and well-known companies and famous personalities.
One of the main factors in the growth of crypto is the hype around it. Demand for virtual assets may rise as the traditional financial system collapses. For example, inflation is rising, so people are forced to invest in promising assets in order to save capital. If earlier it was real estate, more and more advanced users are choosing cryptocurrency and other virtual assets today.
How politics affects the crypto market
A striking example of the impact of political events on the cryptocurrency rate can be called the protests in Kazakhstan, which took place in January 2022. Kazakhstan is one of the main crypto mining centers in the world. It became so after the ban on mining in China, when tens of thousands of Chinese miners moved to Kazakhstan.During the protests in the country, the Internet was turned off, as a result of which the miners of the crypt suffered. About 18% of the world’s cryptocurrency mining capacities were affected as a result, in a few days according to experts, Bitcoin lost about 13% of its value, and Ethereum – 20%.
It is also difficult not to notice the connection of the cryptocurrency rate with the news of Ukraine. On the night when the full-scale invasion of the Russian Federation into Ukraine began, the price of Bitcoin fell by 8.5%, Ethereum by 12%, and the Cardano coin fell by 15%. Experts believe that the impact of geopolitics on crypto rates suggests that virtual assets are gradually becoming familiar to more and more people.
What news leads to a decrease in the price of cryptocurrency
News about inflation may affect the cryptocurrency exchange rate negatively. For example, on June 13, 2022, the Bitcoin exchange rate broke its anti-record over the past year and a half, and began to cost less than $25,000. Experts cited record inflation rates in the United States as the reason. Other coins, such as Ethereum, also collapsed following Bitcoin.
How do famous people influence cryptocurrency?
Trends in the world of cryptocurrency are often set by famous people. For example, Elon Musk only had to write a series of tweets that Tesla intends to accept Bitcoin as payment for its cars. As a result, the market reacted by increasing the rate of the most popular cryptocurrency. But after that, he also announced that Tesla would not accept Bitcoin, and the price of the coin plummeted. And this is not the only time Musk has made the market nervous. He once mentioned the Dogecoin coin in a tweet, stating that the transaction speed of this crypt is higher than that of Bitcoin and Ethereum, and the commission is lower. Just in a couple of hours the price of Dogecoin increased by 14%.
You need to learn how to analyze the state of the market and predict what events will lead to an increase or decrease in assets to understand how news affects cryptocurrencies in Ukraine and the world better. Learning to analyze is not difficult if you have a reliable source of information and experienced mentors.
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