What Actually Moves the Prices of Crypto Assets? – Here are 15 Things to Look Out For

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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.

SEE ALSOWhile Western Crypto Services Primarily Serve Hedge Funds, African Service Providers Cater to Online Merchants, Says 2020 Cambridge University Study

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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