• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Technology Cryptocurrency

Factors that determine the value of cryptocurrency

4 years ago
in Cryptocurrency, highlights, Home, home-news, latest News, Technology
2 min read
0 0
0
76
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Factors that determine the value of cryptocurrency

Cryptocurrencies are fundamentally volatile and as such, their value remains a mystery to a lot of people deemed as outsiders of the cryptocurrency community.

So, what drives the value of cryptocurrency? There are factors that can help determine the value of cryptocurrency. Let’s look at a few of them:

Supply and Demand

Supply and demand are a big factor that determines the value of anything that can be traded, including all digital currencies. For instance, if more people are willing to buy Ether, than others willing to sell them, the price will go up. Price will go down should the reverse be the case. With the supply of many cryptocurrencies being capped, prices of popular cryptocurrencies will go up.

Token Holders

This is a measurement of the acceptance of the cryptocurrency. This can be determined by conducting a search on the internet and sometimes through data/information provided on the website for the cryptocurrency.

Token holders also ascertain the strength of the cryptocurrency’s community. The more holders, the stronger the community which in the long run is a factor that determines the sustainability of the cryptocurrency in times of crisis.

This plays into the demand and supply factor.

RelatedPosts

Top 10 African Countries With The Highest Borrowing Costs in 2025

From FX Pain to Profit Boom: Nigerian Companies Rebound Big After Devaluation

Importation of Toxic Fuel Deals a Major Blow to Dangote’s Fight for Market Share

Mass Adoption

It’s common knowledge that if an asset gains mass adoption, it gains significant value. The same applies with cryptocurrencies. Take Bitcoin, for example, its total market supply is limited, and with its everyday use case increasing with time, it will continuously lead to a direct increase in value.

In short term, if the utility and usage of a cryptocurrency increases, its demand rises, which, in turn, increases its value.

External Drivers

The words or tweets of high-profile figures can be external factors that influence the value of a cryptocurrency. In May 2021, Elon Musk drove up the value of dogecoin through his anticipated appearance on Saturday Night Live and also reduced its slump in July 2021 through a tweet. He however, sparked a price dip of more than 4.5% in bitcoin after he suggested he was “breaking up” with the cryptocurrency.

Also Read: World Bank blacklists Kenyan firm over fraud and collusive practices

Regulation

The call for regulation on cryptocurrency continues to be on the rise. If this were to happen, it will simply result in digital money being centralized and as a result, impact the value of a cryptocurrency.

Take for example the recent fluctuation in Bitcoin price the past week where China issued a ban on cryptocurrency transactions, only for a week after, the U.S Federal Reserve Chairman Jerome Powell, issued a counter-statement where he said the US has no intention on banning cryptocurrency.

Conclusion

With all these combined factors at play, it makes it difficult to accurately predict the price of cryptocurrencies, but it does make it interesting for traders and investors in the cryptocurrency market.

Source: nairametrics
Via: norvanreports
Tags: BitcoinChinacryptocurrencyFactors that determine the value of cryptocurrency
No Result
View All Result

Highlights

GSE Rallies as Composite Index Crosses 7,000 Points; Trade Volume Surges Over 468%

COCOBOD Rules out Syndicated Loan for 2025/2026 Crop Season Amid Global Cocoa Shortage

Fitch Solutions Projects Cedi Stability Through 2025-2026, Cautions on Gold Price Risks

BoG Policy Rate Cut to 25%: Details of the 6-0 Vote Decision by MPC Members

Non-Interest Banking & Finance: A Profitable Path by Bank of Ghana

CHAN2024: Algeria Dominates Uganda, While Guinea Edges Past Niger Group Openers

Trending

Business

Top 10 African Countries With The Highest Borrowing Costs in 2025

August 5, 2025

Top 10 African Countries With The Highest Borrowing Costs in 2025 As inflation remains a persistent threat...

From FX Pain to Profit Boom: Nigerian Companies Rebound Big After Devaluation

August 5, 2025

Importation of Toxic Fuel Deals a Major Blow to Dangote’s Fight for Market Share

August 5, 2025

GSE Rallies as Composite Index Crosses 7,000 Points; Trade Volume Surges Over 468%

August 5, 2025

COCOBOD Rules out Syndicated Loan for 2025/2026 Crop Season Amid Global Cocoa Shortage

August 5, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.