Cryptocurrency prices today show negative dynamics with the market downtrend. It is quite a normal phenomenon when all cryptocurrency prices grow or fall during some period. There are two main directions of the market:
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A bear trend
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A bull trend.
The bear trend is what we witnessed in 2022, starting from the spring. The looming crisis, the war, FED’s decision to increase rates, and other factors led to the market’s collapse. Then in November 2022, there was another push for crypto rates when the information about the FTX exchange’s financial problems was uncovered. Gathering all these events, we can conclude that the main factors that hit crypto live prices are:
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the situation with the global economy;
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inflation;
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restrictions imposed on crypto trading and mining in some states (like it happened in China);
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competition in the crypto market;
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relations between supply and demand;
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media coverage;
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competition in the market;
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complexity of production of coins (mining).
How Supply and Demand Affect Crypto rates
Being traded assets, like commodities or stocks, crypto coins depend on how much people want to buy them. Crypto live prices grow when the number of people wanting to buy it grows (demand) and the number of available coins is limited (supply). Unlimited coin supply reduces the demand for assets. The ratio between demand and supply plays a crucial role in crypto price formation.
Some crypto projects have a limited supply, which helps to support the demand for assets. Some cut the supply artistically, burning tokens. And other projects initially have a limited supply (like Bitcoin).
Investors who own many crypto coins can manipulate supply and demand relations. For example, when they want to reduce the price of coins, they sell assets in masses, cursing panic in the market. So when other people see that the asset’s price falls, they try to get rid of it, selling it out, which reduces the cost even further. In the same way, when large investors buy coins in masses, they create agiotage about the and artificially grow their prices.
If you want to see the list of cryptocurrencies prices and their charts, go to the WhiteBIT exchange.
