Bitcoin is remarkably the most popular, the highest traded and the most reputed name in cryptocurrency trading. For better or for worse, this also makes Bitcoin very volatile and vulnerable to market rumors. Even a small tweet on social media can make the Bitcoin price go topsy-turvy altogether. It is a common belief and talk among financial traders of this digital currency, that Bitcoin is very unpredictable, no one knows what would be the next move with Bitcoin and alike. But how does the Bitcoin news impact the Bitcoin price? Let us take a closer look into this.
Bitcoin News Impacts Bitcoin Price
There is no debating the fact that even small Bitcoin news impacts Bitcoin prices. Most traditional indicators and markers fail when Bitcoin shows huge deviations in price, just due to small Bitcoin news, which does not even get time to be verified. It just rolls down and magnifies the effect for the Bitcoin price like an avalanche. The positive shock of bullish postings on social media can make Bitcoin returns positive the following day and vice versa can also be true. A lot of people discussing Bitcoin on social media, positively, can make the trade volumes soar high the following day! News that someone sold Bitcoin worth half a million dollars this afternoon could make the market panicky and could trigger the price to fall.
If we consider pair trading, it is purely based on market speculation. The market news thus affects how much is sold and bought, how much is traded, and that further drives the price of Bitcoin. Bitcoin is open source and so there is no particular authorizing company or force. So anything that is posted on social media, or forums online, or trading websites, is given consideration.
Usually it so happens that the stakes are so high for golden traders trading in Bitcoin that they cannot afford to ignore any such market news. They immediately adjusted their holdings as per the news. Now, while they adjust their holdings, the Bitcoin market is impacted by such large volume transactions in terms of market dynamics. The news also spread to smaller traders, who in turn follow the leaders, and so adjust their holdings. So it is like a top down ball rolling, with a small trigger at the tip snowballing into more and more volumes until it reaches the base of the hill.
Verify and Action
With Bitcoin’s popularity soaring high, the number of websites that come up as discussion boards for Bitcoin is also high. Make sure you follow only some authentic ones, where the news impacts the Bitcoin price. Also, how this news will affect the price, and how soon you get the news, can make an impact on your Bitcoin earnings. This is where companies like executium.com fall in. They monitor the Bitcoin news non-stop, compare them, and come up with quick conclusions as to how the portfolios of their clients must be rescaled, to gain the best possible out of a scenario.