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Factors Affecting Cryptocurrency Price | Shout Out UK

19 Aug Factors Affecting Cryptocurrency Price | Shout Out UK

Posted at 06:33h in Cryptocurrency News by

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Ever since the creation of bitcoin, it’s safe to say that its price has experienced its fair share of ups and downs. We don’t have to check our bitcoin wallet every day to know that. Now, there are literally thousands of different cryptocurrencies — all with their own specific price. They, too, have seen their fair share of price swings.

But what are the factors that cause these price fluctuations?

The lead suspects

There are lots of factors that contribute to the changes in the price of a cryptocurrency. Here we’ll discuss the main 5:

Supply and demand

Starting at the most basic level of economics, supply and demand play key roles in the price of a cryptocurrency. The price of a coin will be determined by its availability. The harder it is to obtain, the higher the price. Less demand and higher supply mean lower prices.

Take the contrast between bitcoin and Ripple as an example. Bitcoin has a cap of 21,000,000 coins with less than 4 million left to be mined. Because of that…

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