THELOGICALINDIAN - Research from abstracts close the TIE unpacks what sorts of account is bullish and bearish for top cryptocurrencies
The TIE and eToro accept articular several factors that advance to cryptocurrency amount increases in their latest annual report.
Which Events Have the Biggest Effect?
The TIE, a crypto abstracts provider, has leveraged its different Crypto SigDev abstracts augment to actuate which cogent developments afflicted crypto prices the most.
It begin that barter listings and affiliation announcements accept the better actual influences on price. It suggests that back a cryptocurrency is listed on an exchange, it aback becomes accessible to a beyond cardinal of investors.
However, those furnishings are not abiding nor sustainable.
On the added hand, account accompanying to funding, mergers, and acquisitions about has amount furnishings that are both absolute and long-lasting. The TIE attributes this to the actuality that cryptocurrency mergers and acquisitions are generally kept secret, arch investors to booty an absorption in the account for longer.
The TIE additionally begin that alone bisected of the mainnet barrage announcements aftereffect in amount appreciation.
This is best acceptable because mainnet launches are awful advancing events, acceptance investors to acquirement the accordant cryptocurrency in advance.
51% attacks, meanwhile, about account prices to decline. Those attacks aftereffect in an boilerplate accident of 3%, about 80% of the time.
The TIE adds that the antecedent of announcements may affect amount movement. Regulatory announcements accept a greater aftereffect on prices if they are appear through an official source, while airdrop announcements accept a greater aftereffect on prices if they are appear on Twitter. This does not administer to every category, though.
What Does This Mean for Crypto?
The aftereffect is that bazaar prices are somewhat predictable. Joshua Frank, CEO of the TIE, told Crypto Briefing:
“Contrary to the acceptance of abounding that cryptocurrencies are heavily manipulated and unpredictable, our analysis begin that, at atomic in the abbreviate term, agenda assets move analogously to equities.”
Frank added that mergers and acquisitions “move acceptable markets” and can be “a benefaction to agenda asset prices,” suggesting appropriate that broker affect drives the market.
“By accumulation bazaar affective account with quantified broker affect data, it becomes abundant easier to directionally adumbrate area the amount of an asset will go,” Frank concluded.
Disclosure: eToro is a sponsor of Crypto Briefing.
