Although basically all prices of commodities or tradable goods such as gold, stocks, forex, crypto etc. are influenced by supply and demand. For example, many people sell Bitcoin on the market so that the high supply exceeds the supply, the Bitcoin price will fall. Crypto is also a volatile instrument and tends to be unpredictable. However many other factors affect the price of crypto, what do you think they are
What are the Factors Influencing Crypto Prices?
- Thread starter Suba
- Start date
There is what we call market sentiments that have a huge bearing on the prices of cryptocurrency. A positive news or breakthrough would generate positive speculations that would make the demand of that cryptocurrency or the entire industry to shoot up and the prices boosted.
- Thread starter
- #3
I agree with you that market sentiment is also one of the factors that influence crypto prices, if market participants are optimistic then crypto prices will rise and vice versa. Other influences are blockchain technology, news, and government regulation. USD inflation and interest rates will also affect the price of the crypto.
I think there are factors that influenced crypto prices and one is inflation. It could also be the government. In my country, those big-time businessmen in crypto businesses were warned to pay their taxes as crypto buyers and sellers.
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- #5
In my country also crypto buyers are subject to VAT while crypto sellers are subject to income tax. so that our profits will be smaller if converted into fiat money. The currency that has the most influence on crypto is only USD, so the Fed's policy will affect crypto prices, while inflation in other countries (besides the US) will not affect crypto prices.
Also here, many are hesitant to invest in crypto because of the strict implementation of the law to pay taxes VAT inclusive. It is better to observe the prices this time for it always fluctuates.
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- #7
Actually, we can avoid taxes by p2p trading, or selling/buying crypto to friends with fiat money, but there is a risk that if the government finds out, we will be fined.
Nah, it's a risk, there might be penalty. We cannot trust the mouths of our friends. They might report the business man to the authority and the fine might be double. It's good to abide the law.
That is true, but in many places there are still many tax loopholes in terms of cryptocurrencies really, plus one can circumvent (which is legal) using strategies to pay less such as p2p trading or nfts trading, or evade (which is totally illegal) that I do not recommend to anyone.
In crypto currency, the manor factors that influences the price value of it is the number of holders and investors into the crypto project that is on ground as it is with Bitcoin and some times it depends on the news rounding the crypto net.
For me there are so many factors that may influence the change in the prices of the crypto currency.
The Blockchain, market sentiments, the inflation and the government regulations are among the main factor that contribute to the same.
The Blockchain, market sentiments, the inflation and the government regulations are among the main factor that contribute to the same.
- Thread starter
- #14
Crypto will be different from other commodity goods, the number of developers who use the blockchain will also greatly affect the price of crypto, for example Ethereum, inflation or a fall in the USD will also affect the price of crypto, especially Bitcoin.
And I actually have that feeling that the number of people making use of cryptocurrency will also increase and I think it increases day by day and that is why we have so many scammers in the cryptocurrency world too
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- #16
Another factor that affects crypto prices is production costs, in the world of crypto production costs are defined as mining costs, including purchasing hardware mining equipment, which is one of the reasons why Bitcoin prices are expensive, because the cost of mining equipment is also expensive.
