Does the demand and supply the only factor that influences the market?

[Btcdeybodi]

As we know there are lot of factor that determines the market which I can't really factor all out but as I know too well, demand and supply matter a lot in the market. But apart from news and demand and supply what else that truly influence the market and why is that there is positive news the market increases so quickly without delay. Same thing is applicable with the bad news such as exchange hack or wallet hack you will see the market respecting to the news immediately.

What else determines the market price movement?

A lot of factors determines price movements that is why it fluctuates at every seconds. Aside demand and supply, macroeconomics are contributing factors, investors sentiments such as speculations is also among, onchain and offchain activities via trading is also included. Politics is not also left out as we have seen how the price has reacted in the past due to world politics, e.g, the last US election. It impacted heavily on the price of bitcoin and even cause the price to cross milestones. Demand and supply are just the natural factors while others are temporary factors which happens occasionally.

[Creeper0]

There are many factors that affect demand. For example, positive or negative news from the central government, instability in world politics, global crisis, global economic instability, inflation, the impact of central institutions and government purchases and sales on people's demand. When demand changes, we also see price changes in the market.

Demand is the main influencer behind the increase and decrease in price of not only Bitcoin, but also any product. In the case of products, although production costs and transportation costs play a role, demand is the main influencer, if there is no demand, the price of the product will decrease or disappear from the market. If the demand is high, the price of the product will increase. The Bitcoin market is basically demand-dependent, where demand is the main influencer, although supply plays a role, there is no regular change.

[I_Anime]

As we know there are lot of factor that determines the market which I can't really factor all out but as I know too well, demand and supply matter a lot in the market. But apart from news and demand and supply what else that truly influence the market and why is that there is positive news the market increases so quickly without delay. Same thing is applicable with the bad news such as exchange hack or wallet hack you will see the market respecting to the news immediately.

What else determines the market price movement?

Yeah demand and supply plays a vital role when come to price movements. Like you mentioned, there are other factors that can still influence price movements. Factors like ; Market liquidity, As you all know this refer to how easily an asset can be brought and sold without significantly affecting its price. So liquidity is one of the major factors that determines how quickly prices move . We also have market sentiment and psychology, this is another major factor that influence market movements. For instance during bull market the greed sentiment usually overwhelms fear , which will increase demand rate and same time cause market prices to rise . Because crypto market is heavily influenced by human emotions, particularly fear and greed.