There are at least 15 reasons that can cause a gradual or sharp rise in the price of cryptocurrencies, according to analysts on the EToro trading platform. In the latest report, they listed the triggers that are causing digital assets to rise in price and assessed the effect of them.manifested in an hour, a day and a week. Writes about this RBC Crypto.
Jumps in the rate of cryptocurrencies occur after the disclosure of important information about the development of the project. It can be:
Mergers and acquisitions of projects
Formation of partnerships
Adding a token to a new exchange
Main token network launch
On average, in the first hour after the disclosure of such information, the price of the token rises, but insignificantly - by only 0.5%. This is due to the fact that it takes some time for information to spread in the crypto community. On the first day after the news was published, the asset rises in price by 0.8-1.3%, and during the week - by 2-8.2%.
In the short term, announcements of significant project improvements, mergers and acquisitions have the greatest impact on the cryptocurrency rate. In the long-term - news about the introduction of staking, the conclusion of partnerships, the offensive of halving also becomes an important driver. According to EToro, the news of a project merger or takeover of one another in 90% of cases leads to an increase in the value of tokens within a week. On average, in such cases, assets rise in price by 8.23%.