A new study by eToro, a global and recognized multi-asset trading platform, and The TIE, a premier provider of alternative data for digital assets, breaks down what actually influences the prices of crypto assets.
The detailed study looks at each major asset over a period of time and evaluates various factors in order to offer a comprehensive analysis of how markets react.
The study has identified 15 reasons that are likely to affect the price of a crypto asset over a period of one hour, one day, and one week.
Check out the list of reasons and the timelines for each below:
Reason 1 Hr 1 Day 1 Week
- Mergers & Acquisitions – 45% 65% 90%
- Funding – 50% 45% 60%
- Halving – 54.6% 57.4% 57.8%
- Employment Changes – 46% 56.1% 55.4%
- Partnership – 53.9% 58.4% 53.9%
- Staking – 47.4% 55.5% 53.6%
- Announcements – 49.7% 54.1% 53.5%
- Illicit Activity – 45% 53.2% 53.2%
- Listing – 51.4% 52.5% 50.4%
- Token Burn – 83.3% 100% 50%
- Fork – 37.7% 48.3% 48.3%
- Regulatory – 47.6% 49.7% 47.2%
- Mainnet Launches/Upgrades – 51.3% 57.6% 47.1%
- Airdrop – 44.4% 43.7% 45%
- 51% Attach – 27.1% 33.3% 20.8%
Below is a summary of the study:
- There is a guaranteed rise in price one day after a token burn either due to deflationary pressure in the longer term, or because the gains for token burns will be more sustainable, all else equal
- Mergers and acquisitions are almost a guarantee that the price will rise after one week due to the nature of such news which are generally tightly held secrets.
- Regulatory announcements tend to have a larger effect on price when they come from news outlets and they are most trusted when the come from official sources
Check out the full study report here.
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