Today, together with you, we will cover topics such as how crypto money news affects the markets, how to make money by following crypto money news.
Impact of Crypto News on the Market
As in many investment instruments, news in the cryptocurrency market can have a positive or negative impact on the price of assets.
If the high supply against any stock in the stock market increases the price, while the low demand decreases the price, this is the same in the crypto money markets and other markets. Well, I seem to hear what you are saying about this news. Let’s explain this again with an example. For example, as a result of Elon Musk’s tweet about Dogecoin, many investors flock to the asset, thinking that the price of the asset will rise, so the demand for Dogecoin increases and the increase in demand causes the price to increase. Now let’s consider the opposite. Elon Musk’s announcement on Twitter that he no longer supports Dogecoin has the opposite effect on Dogecoin. Hundreds, maybe thousands, of people who invested with a tweet can withdraw all their money from the asset they invested with another tweet this time. This reduces the demand for the asset, and the decrease in demand causes a decrease in the price of the asset. For example, after a tweet by Elon Musk about Dogecoin, the price of the asset increased by 1690%.
Let’s move forward with another example. For example, Tesla’s announcement that it will accept payments in Bitcoin may cause an increase in the demand for Bitcoin, and a company that receives payments in Bitcoin will give up on this, which will cause a decrease in demand. In short, the price of crypto assets is determined by supply and demand. Supply and demand are also shaped by the news and developments.
Can You Make Money By Following News?
We understood the impact of crypto news on the markets, but is it possible to make money by following the news? The answer is of course yes. If you want to make money in cryptocurrencies, you should also follow news apart from analysis. In addition to the examples I mentioned above, you can follow news specific to projects. For example, you want to invest in Cardano’s local presence, ADA. By following the news and latest developments about the Cardano ecosystem, you will have an idea about the progress of the project. Let’s say Cardano plans to perform an update in the last quarter of 2023. This may have a positive effect on the Cardano price. Knowing this in advance will help you decide to invest in the asset and take a position.
Another way to make money with news tracking is airdrop events. Many projects can airdrop in testnet stages or mainnet stages. When you follow the news of these previously announced events, you eliminate the risk of missing out. Thus, you get the chance to qualify for airdrop rewards.
In addition, it is very important to follow macroeconomic developments. The Fed’s interest rate decisions, inflation data, these are all developments that will directly affect the price of cryptocurrencies. Therefore, it will be beneficial for you to examine the news such as which days in the current month macroeconomic data will be announced, what are the forecasts about these data, and what will be the impact of these decisions on the markets.
Of course, it is also very important to benefit from reliable sources and news sites while following the news. False and fake news can cause you to make harmful investments. You can follow the Coinkolik website and social media accounts to be informed about the latest developments in the crypto markets.
