What determines if a coin goes up or down in price?

[ktabb]

I heard that if there is news that certain places will start using a certain currency, then it will increase in value.  Obviously that sounds very simple.  But that is true right?


What exactly causes a coin to go up or go down in value?  If everyone starts selling the coin, will the coin go down in value?  Im curious but what things trigger coin prices to go up or down?

The value of a cryptocurrency is determined by how usable it is (how widely it can be spent), how good the technology is, rate of adoption, legal status, etc.

The price of a cryptocurrency is not determined by its value.

The crypto market is extremely inefficient. Prices are determined by investor psychology... mostly buying and selling manias. Bitcoin price is slightly driven by value, which in turn drives the prices of other cryptocurrencies, but it takes a very, very long time for price and value to match up with one another, if they ever even do. Value is difficult to determine and everyone thinks the dollar value of bitcoin is different.

Basically the primary factor driving the price of any crypto coin is investor psychology. The intrinsic value of the coin has very little to do with its price.

[evermarkets]

In a past life I used to dabble in statistical arbitrage and high frequency trading for equities and futures at Wall Street firms.  These roughly translate to medium term (~days) to ultra short term (~minutes) trading horizons.

Trading BTC (or ETH, or LTC, etc.) has a lot of differences with the products I used to trade there, as they are inherently dissimilar products.  But since many crypto exchanges have similar market microstructures, both traditional and crypto assets can move in comparable ways.

Allow me to chime in with my perspective: trading, at any horizon, is a battle of the supply side and the demand side.  At very short horizons, more of the actual supply and actual demand is displayed on the order book, so high frequency traders can utilize short term price prediction signals to make pretty good predictions just by looking at the posted orders on an exchange and writing some function of them (commonly called an alpha signal).  A very simple alpha like taking a log ratio of the bid side divided by the ask side will have very high predictability.

As you move to longer time horizons, more and more of the "actual" supply and demand is undisplayed.  This is either because traders choose to withhold part of it -- they may only post, say, 10% of a giant order, afraid to move the market if they post more -- or they haven't decided to trade yet (i.e. uncertainty).  The price prediction game then becomes how to either figure out what traders' current withholdings are, by for example analyzing any patterns they may have in releasing parts of their giant order; or attempting to ascertain what uncertainties exist, and how market participants will react to these when this new information is released.  Most longer term price prediction models are centered on one or the other in some implicit fashion.

Hopefully this line of thinking will assist you in developing your trading philosophies.  Happy to discuss.

[iqlimasyadiqa]

I heard that if there is news that certain places will start using a certain currency, then it will increase in value.  Obviously that sounds very simple.  But that is true right?


What exactly causes a coin to go up or go down in value?  If everyone starts selling the coin, will the coin go down in value?  Im curious but what things trigger coin prices to go up or down?

Yes it is true that the current factor becomes positive for bitcoin price movement. When there is a country that receives bitcoin then bitcoin prices will increase. Besides that the increasing demand factor can make bitcoin price increase. Because then the more bitcoin is used and also the increasing place / store that receives bitcoin can affect.

[gabmen]

The higer number of people using it generates a higher demand for btc which i think causes the price to shoot up. Consider the fast popularity of bitcoin now and a couple of years back. Now that a lot of people arw aware and have delved into btc, we're steady at a price around 2.5k which is way higher than the average price last year

[Lomberjack]

I heard that if there is news that certain places will start using a certain currency, then it will increase in value.  Obviously that sounds very simple.  But that is true right?


What exactly causes a coin to go up or go down in value?  If everyone starts selling the coin, will the coin go down in value?  Im curious but what things trigger coin prices to go up or down?

Only news and big whales' decision. We all know how powerful does news in trading so it can help us to know when to buy/sell. Also, whale decsion when to buy/sell gives an impact in crypto currency. For this reason, we have to know the pattern they do in their ways.

[Vishnu.Reang]

It is quite simple, isn't it. If the demand is high enough, then the prices will increase. Now if you ask me what triggers this demand, then it gets more difficult. Increase in the number of users can be one reason. Another reason can be investment by the big players. But the most important trigger can be increase in the number of exchanges and shopping sites which accept this coin.

[arwin100]

The higer number of people using it generates a higher demand for btc which i think causes the price to shoot up. Consider the fast popularity of bitcoin now and a couple of years back. Now that a lot of people arw aware and have delved into btc, we're steady at a price around 2.5k which is way higher than the average price last year

But we cannot erase the fact that there are certain fuds help for bitcoins price reached and also there's an historical event happened thats why we can see the price stretch for more and im so wondering on how things would go for it since the adoption of it keeps spreading and it tells that demands would be rising to. But what if theirs bad events would be happen? I think those people who have balance would start to sell at that could cause downfall to the price.

[xSkylarx]

The reason why the coins goes up or down in price is because of the trader or the users who are selling or buying some coins,
It is basically because of the stock's and demands of the coin the simplest rule in trading.

[bncbnc]

The higer number of people using it generates a higher demand for btc which i think causes the price to shoot up. Consider the fast popularity of bitcoin now and a couple of years back. Now that a lot of people arw aware and have delved into btc, we're steady at a price around 2.5k which is way higher than the average price last year

that the main reason which cause the price of bitcon to increase is the interest of the people, if people are interested in bitcoin, then the demand is increase  which cause the supply decrease. and therefore people even start buying bitcoin at high price. they know that the price of bitcoin has still too much potential and its price can go more high. therefore they are not feeling hesitation about the price of bitcoin and hope that its price will continue increasing for a long time.

[Kriptex]

The reason why the coins goes up or down in price is because of the trader or the users who are selling or buying some coins,
It is basically because of the stock's and demands of the coin the simplest rule in trading.

This is not wrong in theory and practical. If the coin you deal is a project coin, then you can also follow the development plan and announcements that the official team makes. So that you don't miss anything.

[Rahar02]

I heard that if there is news that certain places will start using a certain currency, then it will increase in value.  Obviously that sounds very simple.  But that is true right?


What exactly causes a coin to go up or go down in value?  If everyone starts selling the coin, will the coin go down in value?  Im curious but what things trigger coin prices to go up or down?

I guess you already know about supply and demand law in economics world which cause prices increase or decrease.
In crypto world, some coin really has good potential to grow up and people invest on those coins, but there are some time people want to cash out their money obviously. When huge funds withdraw from the coin, people will follow to sell and its price decrease. It is normal, a cycle in this environment which always repeated because many investors join and put huge amount of money here.

[viking02]

is there a correlation to all the coins all seem to be dropping recently?  Literally every coin has been dropping.  Is there a correlation with this or is this luck?

[DaddyMonsi]

Like whats been said many times about trading its supply and demand. More demand but less supply is good because that will result to the price to go up. Less demand more supply then you are looking a price that will go down as there will be people trying to dispose their coins at cheaper price just to  let it go or convert their coins to fiat.

[psy0]

is there a correlation to all the coins all seem to be dropping recently?  Literally every coin has been dropping.  Is there a correlation with this or is this luck?

Yes it is correlated but in a strange way. It used to be like this: when btc started to go up, altcoins crushed. Most obvious example is the btc rise on October. Almost every altcoin went to their absolute dip. Ether was 0.007ish, LTC was 0.004ish, XRP was 400 satoshi. But it seems like this has changed. Now its like if btc goes down, all the expectations and trust on cryptocurrencies goes down, in a wierd way.

To answer OP's question, cryptocurrencies are selling dreams. They are like future markets for penny stocks, nothing else. Almost none of them has real world use, so you buy and sell expectations. So a possible adoption new with some whales playing makes the coin rise.

[Alice Nuttal]

Mostly the adoption among users. Go back in btc early days and you will see that it started as an experiment with limited number of users and extremely low price.
And what's now? Btc attracts more users, the price is increasing.
Sure, there is an external environment, which hinders btc from further rapid development, so sometimes its price swings as a natural response to changes. 

[viking02]

so you guys are telling me now right now, if you want ETH to go up for example, you definitely want btc or litecoin to go up so its related?


On shapeshift, they show the prices of


Btc, eth, xrp, ltc, etc, dash, xmr, bts, sc and waves.


Every single one shows its going down.  Last time i noticed when BTC and ETH went up, almost all the other coins go down.  I seen maybe one time that all the coins were down except 2 coins. 

[coynedterm]

I heard that if there is news that certain places will start using a certain currency, then it will increase in value.  Obviously that sounds very simple.  But that is true right?


What exactly causes a coin to go up or go down in value?  If everyone starts selling the coin, will the coin go down in value?  Im curious but what things trigger coin prices to go up or down?

In my opinion it will not be better to say that a particular thing to be a reason of the down and up in the price because it depends upon many things .
First of all the news , if new contract news will came for the particular coin then it will get instant up because it get trp in the market and probably increase in the demand.
Second thing is the technology of the coin that attracts the people slowly slowly toward himself to buy and hold ( sia coin and stratis are better example of this ) .
Third thing is the people who spread bad and good fake news about the particular currency so that people can buy them or sell them ( fresh example of fake news about eth owner death )
And last thing is the announcement of the new technology launching ,
These are those factors which indicates that the price of the coins will surely increase for atleast once .

[Kersh768]

I heard that if there is news that certain places will start using a certain currency, then it will increase in value.  Obviously that sounds very simple.  But that is true right?


What exactly causes a coin to go up or go down in value?  If everyone starts selling the coin, will the coin go down in value?  Im curious but what things trigger coin prices to go up or down?

Of course if everyone starts selling their coin, it would dump as buy orders will be weakend which can certainly cause dump. However, it can be recovered if the support strengthen against sell orders which always occurs in stable altcoins.

[MBW_2]

I heard that if there is news that certain places will start using a certain currency, then it will increase in value.  Obviously that sounds very simple.  But that is true right?


What exactly causes a coin to go up or go down in value?  If everyone starts selling the coin, will the coin go down in value?  Im curious but what things trigger coin prices to go up or down?

Of course if everyone starts selling their coin, it would dump as buy orders will be weakend which can certainly cause dump. However, it can be recovered if the support strengthen against sell orders which always occurs in stable altcoins.

Markets are contolled by greed and fear. If downtrend starts with panic selling it will continue till strong support line. Traders are looking for cheap prices to bump for later big dump 

[tigershark]

I heard that if there is news that certain places will start using a certain currency, then it will increase in value.  Obviously that sounds very simple.  But that is true right?


What exactly causes a coin to go up or go down in value?  If everyone starts selling the coin, will the coin go down in value?  Im curious but what things trigger coin prices to go up or down?

If a coin has a specific function and has good development, then it will start out strong and probably rise in value. I think it all depends on the usefulness and how well it is publicized. Also the value is hurt if a coin is premined as well. There are so many different altcoins out there right now that it is hard for new ones to stand out from the rest.