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eToro: Report Finds Main Factors Driving Cryptocurrency Price Up

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eToro: Report Finds Main Factors Driving Cryptocurrency Price Up

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According to the new findings from eToro, crypto-assets usually benefit the most within a week and not only in the first hour or on the first day after large-scale development.

eToro, a major multi-asset broker, released a quarterly report on the cryptocurrency market for the third quarter of 2020. The report is titled “What Changed the Price of Cryptocurrencies?” And examined the main factors that led to an increase in the price of cryptocurrencies. The value of the cryptocurrency.

The “major developments” that directly affect the value of crypto assets include mergers, financings, halves, partnerships, mortgages, and announcements. The researchers analyzed the performance of crypto assets one hour, one day and one week after development.

eToro: How long will the crypto assets bounce back after the announcement?

According to data from eToro and The Tie, crypto assets typically receive the most benefit within a week of each notification.

In the first hour after the announcement, crypto-assets tend to increase by around 0.5%. The market responded poorly given the time it takes to publish information.

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On the first day of the announcement, crypto-assets can grow by 0.8% to 1.3%. Understandably, with the spread of news, the growth of the cryptocurrency exceeded the first hour during the day.

In the first week of the announcement, crypto assets typically increase by 2% to 8.2%. This is the largest increase in any time frame.

What’s the highest chance of leading the uptrend?

Of all major developments, at least in the short term, mergers and acquisitions have caused the greatest recovery. In terms of daily, hourly and weekly performance, halving, financing, partnership and equity lag behind the acquisitions.

The average price change of crypto assets after a significant development. Source: eToro

eToro researchers also found that mergers and acquisitions can also offer a 90% chance of positive returns during the week. It is worth noting that:

“M&A is very good. There is a 90% chance of positive return after a week with an average return of 8.23%. This excess return maybe because most M&A news is in Regarding tokens are secret. Also, they are usually tokens. M&A messages in the context of the background to add more value to the ecosystem. “

The probability of a crypto asset’s price surge after a significant development. Source: eToro

Prevent data leaks

The data points in the eToro Q3 report may be more appropriate for institutional investors and professional traders than retail investors.

However, the data offers unique insights into the types of underlying factors that affect the price of crypto-assets. It also shows that exchanges, projects, and other related companies need to be more careful when dealing with potentially sensitive announcements and important developments.

The report shows that project-related announcements usually have a significant impact on the price of related crypto assets. Therefore, related parties or companies must ensure that no relevant data is lost to prevent market manipulation.

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