What makes crytocurrency market unstable?
Dating May 31st , Brad Garlinghouse, the CEO of Ripple, told CNBC that Bitcoin has influence over the crytocurrency price, which is truth if we take a glimpse of the price curve of Bitcoin and other tokens. According to some data.coms, the pricing of Bitcoin drop slightly in the midnight and then came back to the price range of $7,300 – $7,400 and finally made a breakthrough by returning to a relatively higher price level of $7,500.
At the moment, the real-time Bitcoin price stands at $7.549 and we can come to a conclusion that Bitcoin recovers and continue to change for the better in following days. And the tokens like CannaCoin and Mineum , which are not as dominated as Bitcoin and other top performers, has a major overlap in terms of the price move today.
Being volatile in price is the major characteristic of the crytocurrency, but what makes the market unstable? This article is going to briefly investigate factors that may arouse price move in market.
1.Confidence in tokens
As Brad Garlinghouse mentioned in the interview, “I think it’s a matter of time until people better understand the different use cases.”People’s attitude toward the whole industry is an fundamental factor that decide how the price curve changes. And it’s the attitude of the government and financial institutions that matter much and arouse change in people’s confidence in the market. Because although the whole system are created to run around the central institution, developers still need to ask traditional organizations for help and build up a sound foundation for the company. It’s not necessarily a “must” thing to do in maintain a sound and long-lasting development, but it’s the fastest way to do. For example, In Stellar announcing the partnership with IBM, the market saw a surge in its price. So did Bitcoin when it conducted cooperation with Goldman Sach in issuing Bitcoin futures.
2. Corporate Management
Though there are external influences on the price move, corporate management is also an essential factor for a team to maintain the value of tokens. Since the launch of a new token and blockchain, team must upgrades themselves to cater to the users, such as strengthening the technical support to prevent potential hacking and restructuring the strategies.
Why is corporate management so important? Because the opposite is rather disastrous, which may lead to huge financial loss and hurt the company’s reputation.
Soon after an anonymous attackers committed a double-spending on BTG network on May 23th, and the immediate slump, a total of nearly 3 dollar.