How Bitcoin Bullish News Drive Price of Crypto
We sometimes have breaking news, which is as a result of human interference with the network. To make it easy to track important news, reports, and event that moves the crypto market, we made you this list.
If you live in a region prone to natural disasters, you will be familiar with moving to another part of town before the disaster strikes. Several news channels will probably give updates regarding when and where the disaster could strike. I know this is a pretty dark example, but it fits perfectly with the focus of this piece. Just like the events stated above, upcoming events be it good or bad, tends to move the price of financial instrument exceptionally. There is a common saying amongst forex traders that goes like this, "never enter a trade before or after major news." This is simply because the market response to the news is not always predictable. So a market which is already in the green can suddenly change course. Sometimes the market doesn't respond to meaningful communication. In a case like this, it is usually because the " big boy" haі already anticipated the result of such events and have made their trades. As such, no significant money is released into or removed from the market during this period.
Fortunately, for crypto traders, the likely mood and outcome of most events, reports, and news associated with most projects are usually known beforehand. This is because everyone knows what is going on, and nothing is shrouded in secret when it comes to numbers.
We sometimes have breaking news, which is as a result of human interference with the network. But still, anyone can easily decipher the outcomes of such a report. For example, a hack attack on a system always led to a drop in price. So for those lucky enough to enter a sell trade before the hacking incident gets public, making money is almost always sure.
To make it easy to track important news, reports, and event that moves the crypto market, we made you this list.
Partnership Rumors
Just like any significant business, to save money and also capitalize and take advantage of the success and popularity of already established crypto projects, it is essential for a crypto project to form a partnership. In most cases, partnerships are designed to help improve the network. Instead of building a particular feature from scratch or having to pay a massive sum of money to enjoy a feature readily available in the market, a project can form a partnership with another one. This way, users of both platforms get to enjoy the features offered by both platforms. To some extent, this is good news for projects involved. And is generally a bullish sign.
Generally, the size of the company the project is partnering with tends to determine how strong the coin price will move. The publicity surrounding the partnership will end up bringing more focus to the project in questions; therefore, more investors. As we all know, the market works based on the principle of demand and supply; as such, the coin will have more desire, and the price will rise.
Contests
Although not a significant sign of bullish sentiment. A contest generally portrays a form of a healthy ecosystem. Importantly, contests bring in more micro investors to a project. Generally speaking, to take part in a crypto contest, you need to hold some of the coins in your wallet. As such, anyone who doesn't previously own any coin will have to get some. Also, those who own coins already will want to increase their chances of winning. As a result, they will increase their stock. This generally tends to affect the price of the coin positively. Although from experience, the effect can be temporary. This is mainly because those who bought the coin mainly due to the contest will have to dump it. So you need to be careful when trading based on the contest pump effect.
Exchange listing
Another critical market-moving report is the listing of a coin on a significant exchange. Listing on a considerable exchange generally means more traders will have access to the currency. Therefore, the daily trading volume of such a coin is expected to skyrocket. What is essential is that the exchange needs to be a major one. Preferably, one of the top 10 according to daily volume. Listing on an exchange of high value is also a sign that the project is worth something. This is mainly because a top exchange will always do its assignment well before listing projects. If a project can manage to pass the scrutiny of such top exchanges, it usually considered a good sign for such a project.
Mainnet Launch
Another critical price mover is the mainnet of a project going live. Launching the mainnet is considered the most significant milestone of any crypto projects as it signifies the "beginning." Through a mainnet launch, the project team is sending a clear message to the community that "we are not here to play." Depending on the size of the city and the PR surrounding such launch, this is usually considered a bullish sign for the coin.
Launching an IEO
IEO (Initial Exchange Offerings) has become the favourite method of raising money for crypto projects right now. This is mainly because an IEO is usually conducted in partnership with an exchange. Once concluded, such a project coin will be listed on the exchange platform. In the case of a famous exchange, no other advertisement is needed to push the coin sales. Investors and traders already used to the transaction will naturally want a piece of such coin. It is not uncommon for the price of a currency to jump about 500% right after an IEO. This phenomenon is likely to continue, as long as top exchanges like Binance keeps launching Coins on their IEO platform.
Celebrity Recommendation
Although an old method and might not be that effective again, a celebrity endorsing a coin has been known to drive the price of such a coin. Many fake projects have abused this method. But if an established project gets praised by a celebrity, I think it is best to start prepping for a trade. But don't just trade based on these recommendations. Do your research and follow your trading checklist. Always.
Just because a coin has any of these events, news or report coming up doesn't necessarily mean you should start buying. It is only one more tool in your trading arsenal. You should never base your trading decision on one event. You need to have a checklist of things to consider before taking a trade. I wish you the best in your trading journey.
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