Uncertainty & fluctuations of Crypto Market
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Uncertainty & fluctuations of Crypto Market

August 18, 2020      Ashna Goel

Inevitability of change is the only certainty that can be counted on as a constant in life. The world of finance adopted this change like a pro when a new virtual currency also known as cryptocurrency emerged in the market. Bitcoin, the first cryptocurrency to work its way, holds a bittersweet reputation in the intellect of the crypto enthusiasts causing an endless debate on its volatile and unpredictable nature, lasting to this date. Although there are a number of other cryptocurrencies that entered the market after Bitcoin, it has managed to maintain its position as the highest value cryptocurrency among the others.

Despite what the above statement infer about the reign of Bitcoin, it has seen its fair share of fluctuations in the crypto market. By the month of October in 2017, the price of bitcoin went up to 5000$ and then within 3 months, it doubled to 10000$. By December of the same year, it’s value hit nearly 20000$. The great rise in bitcoins value matched its meteoric fall soon by April 2018. By that time Bitcoin’s value crashed to 7000$ and went below 4000$ by November 2018. The pattern re-emerged in 2019, when its value rose to around 10000$ in July and then dropped back down to 7000$ by the end of the year. Bitcoin has continued its journey of recovery ever since, going as high as almost 12000$ this year.

The uncertainty that the crypto market faces is a result of many factors coming from news events of incidents involving bankruptcy, theft, security breaches, poor management etc. causing the inevitable influence on the value of the currency. 

 News Influence on Crypto Market

Opinion over anything as small as a daily use product is based on its performance. The journalistic grab on the subject of cryptocurrency premiering headlines involving incidents of the early embracers of bitcoins, introduced fears in investors.

Incidents featuring the news of Mt. Gox bankruptcy disaster spread panic over the public and investors, immensely affecting the crypto market with it. Events such as this compromises the trust factor, imaging predictability in a dark light.

Followed by the disaster of the silk road in news about cryptocurrency in 2013, questioned the untraceable component of the transactions involving bitcoins, shutting down the marketplace entirely. 

News featuring more events in respect to the blunders involving cryptocurrency like the south Korean exchange Yapian Youbit, brings high profile losses into the spotlight, capturing attention of millions and respectively influencing the masses causing potential harm to the currency’s market value and raising questions on the management and security of the featured organisations.

The panic generated by such coverage at the end generates doubts and fears, resulting in the prominent fluctuations in the crypto market.

Co-depending Social Sentiment

Interest in the common genre of subjects, leads to varied discussions, forming an online cult dedicated to the area of interest. The practice of cultivating online presence growing for the past decade involving crypto currency has resulted in an interdependent relationship between the practice and the product itself. Causing them to feed off of each other, directly affecting the applications and value of cryptocurrency in existence.

With the introduction of the stunning concept that came with the birth of bitcoin, the online presence jumped into exercising and exhausting every aspect of the concept, bringing possibilities and ideas into reality. This brought a diverse crowd together to start and join discussions over the matter including crypto geeks, technology enthusiasts and bringing the attention of investors and business owners.

Online research platforms like Cryptoknowmics are dedicated in researching and analyzing data over the influence of the crypto world and its applications.

The gathered information directly links the online sentiments to the changing value of cryptocurrencies in the market. The bad press and news presenting various events involving cryptocurrencies leads to a storm of online discussions and debates. Theories and methodologies discussed by the crypto enthusiasts in the comment sections keeps the sentiment and online activity alive on social media. 

With growth in the online conversation on cryptocurrency significantly increases the number of web searches in a day fueling a price surge in the currency. At this point it is quite hard and unpredictable to conclude which fuels the other one more but leaves no doubt in the interdependent relation between the two. 

Conclusion 

Like every other matter of interest that gains huge online presence and attention, cryptocurrency came with its own set of engagements involving scandals and blunders with huge business organisations thus gaining eyes of the masses. A completely digitized form of currency with easy availability on electronic platforms gave potential business opportunities to carry financial trade, also opening doors to a number of illegal activities involving theft, drugs exchange and scandals following in its trail, which directly falls dependent on the activities that consumes thoughts and online sentiment resulting into the evident fluctuation and partly explaining the volatile nature of crypto market.

With Global coverage and lightning fast acknowledgement over the internet, the flow of impact of the digital media and web analytics on the crypto market varies on the intensity and sensitivity of the event involving cryptocurrency.

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#Fluctuations in the crypto market
Ashna Goel
Ashna Goel

Ashna is a graduate from Amity University specializing in Journalism and Mass communications. She is currently working as a content writer for Agio support solutions Pvt. Ltd. She aims to provide quality content and strategy in the field of cryptocurrency and work with digital marketing platforms to deliver brand-specific strategies.