Last time, we discussed some of the major crypto influences you should be aware of. Mainly, we had a look at the news. This time, we shall dive into even more of the most important factors to keep track of with crypto trading.
Discussions online
Almost all discussions surrounding cryptocurrencies happen online. This is not really surprising. Apart from the fact that a lot of discussion on financial markets happens online today, cryptos are a little different. Cryptocurrencies first emerged online in 2008, in the midst of the internet era. The only way to trade cryptocurrencies is digital. Therefore, this fact should surprise no one.
There have been studies linking online forum activity with crypto price performance. Especially notable are sites like Reddit, where crypto discussion is the highest. Generally speaking, when the intensity of crypto discussion went up, so did prices. So, the discussions highlighted that people will soon be, or already have, buying cryptocurrencies. Obviously, though, it was mainly positive news that drove buying.
When Bitcoin was standing at its highest price point, the discussion surrounding cryptos was off the charts.
Regulation, and safety issues
The safety of cryptos is a huge matter of importance. As it stands, people believe they are mostly safe, but there have been some high-profile cases. This, combined with the fact that prices are highly volatile, means investors are sometimes careful in this market. Any reports of glitches in a blockchain, or large-scale hacks, could be very worrying. As such, regulation is something most traders want. Currently, unpredictability is putting people off. But regulation could mean stability in the market for once.
Public acceptance
How the general public view cryptocurrencies are also important. If you asked people about cryptocurrency 10 years ago, many people wouldn’t take it seriously. These days, though, the discussion surrounding the market is heated. As people accept the market more and use the currencies more easily, the prices should stabilize.
