According to new findings from eToro, cryptoassets usually accumulate the longest in a week, not in the first hour or in the first day after a major development. EToro, a major high asset broker, publishes a quarterly report on the crypto market for the third quarter of 2020. The report, titled “What Drives Cryptocurrency Prices” looks at the main drivers behind cryptocurrency.
15 “major developments” that directly impact the value of crypto assets include mergers, funding, halvings, partnerships, betting and communications. The researchers analyzed the performance of the crypto asset one hour, one day, and one week after development.
According to data from eToro and The Tie, crypto assets typically grow at their highest within a week of creating a message. In the first hour after the message, cryptocurrencies usually go up by about 0.5%. A weak market reaction is expected as information takes time to circulate. On the first day of the announcement, crypto assets tended to rise 0.8% to 1.3%. Understandably, cryptocurrencies grow faster during the day than in the first hour the news spreads.
In the first week of the announcement, crypto assets often go up 2% to 8.2%, mostly over time. At least in the short term, mergers and acquisitions of all major events provoke the biggest demonstrations; Half, funding, partnerships and stakes lag behind daily, hourly and weekly returns.
The EToro Q3 data will likely be more useful for institutional investors and professional retailers than it is for retail investors. However, the data offers unique insight into the nature of the main factors that influence crypto asset prices. It also suggests that exchanges, projects and other related businesses need to be more careful when dealing with potentially sensitive news and important developments.
The report shows that project-related news usually has a strong impact on the price of the relevant crypto asset. Therefore it is important for related parties or companies to ensure that relevant data is not lost to prevent market manipulation.