THE CONCEPT BEHIND ASSET PRICE DUMP IN THE DIGITAL CURRENCY MARKET

Hello to everyone in this wonderful community today and on this great platform at large today. I greet you all in good spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health.

I welcome you all to yet another beautiful day of the week and I want to believe that we all are having a good time at work and also a wonderful week so far. I hope you all have a blessed day today!

As always, I am here again to discuss with us all regarding an important topic that I have titled The concept behind price dump in cryptocurrency market. This is an interesting discussion and as such I urge you all to sit tight and relax as I begin the discussion for today. I wish you a happy reading!

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As we all know that the digital currency is highly volatile, as such, there are eventualities that are certain to happen and these are the rise and the fall of asset price as though the digital currency is not stable. Since it is not widely accepted by all nations, this makes it to be unstable.

The unstable nature of the cryptocurrency assets has given room for traders and investors to take advantage of this downtime regarding the cryptocurrency asset hence they make profit out of it by trading the digital assets in the cryptocurrency market.

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In as much as the digital currency is unstable and most traders want to benefit from this unstable nature of the cryptocurrency, the digital currency do not just fall in price value. This movement is facilitated by investors and traders in the cryptocurrency market, especially those who are known as the strong hands in cryptocurrency market.

Now with the above, we can now talk about the above topic intensively for more understanding as to why we get to see a high dump in cryptocurrency asset price most time in the cryptocurrency market.

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THE CONCEPT BEHIND ASSET PRICE DUMP IN THE DIGITAL CURRENCY MARKET

There are different scenarios in which we notice a high dump regarding cryptocurrency assets and a few of these are News regarding certain assets, clashes between countries, manipulation by strong hands in the cryptocurrency market, scam regarding cryptocurrency projects and so on.

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So I will be taking the above that has been listed one after another to discuss and to prove the point that they are part of the concept behind dump in cryptocurrency assets.

BAD NEWS REGARDING CERTAIN DIGITAL ASSET

News regarding certain things can cause uproar wherever you go, most especially bad news. It causes various damages as it is been spread across the world. In such manner does cryptocurrency news also flies across the ears of investors and traders.

I always make reference to the LUNC which is termed as the luna classic. It was initially called terra luna and it was pegged to the UST currency and when eventualities came up, it losses it pegging and immediately the cryptocurrency asset begins to depreciate in price and this was as a result of mismanagement regarding the team.

A huge dump was noticed and with that, traders trading futures began to execute a sell short trade entry and the price continues to deep as no one was buying the deep. Every trader as at tha time were selling off the asset and at the long run, the asset all the way from $1 worth, is now worth cent because investors and traders has sell off the asset in the market.

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That is what bad news can do to any digital asset we see in the digital market today. News fly so well and when this happens, if it is connected to cryptocurrency or a particular cryptocurrency asset, you get to see the effect of that news on the price of the said asset.

If it is a good new, you get to see high purchasing power regarding the asset and if it is a bad news, a strong sell is executed by traders and investors hold such asset so that they do not lose their capital.

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CONCLUSION

This is why news affects cryptocurrency because it is volatile and the information regarding an asset determines the price of the asset. If the assets has potentials, you will notice a strong buy regarding the said asset but when the asset is not regarded as one with good potential, a downtrend movement in price regarding the said asset is seen in the market.

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This is why it is always advisable to keep an eye of all news and information regarding an asset before you invest so that you do not get caught up and lose your funds just because you are afraid of missing out and then end up throwing your capital away in the market.

I will have to drop the pen at this juncture. We will continue with the rest points when next I am here, but for now, I bid you goodbye. Thanks for having me today and see you soon.