There are plenty of causes that trigger changes in crypto prices, as they directly affect popularity. Supply and demand are leading factors impacting cryptocurrencies’ fame because depending on how much a coin is demanded or not, its value can increase or diminish in a short time. But there’s more to it ―the technological change, market sentiment, and adoption rate are also significant contributors to a cryptocurrency’s renown.
However, one underrated determinant is media coverage, whether it includes social media posts or regular news. That’s because it directly involves investors’ general opinions and sentiments about the market, which is an essential consideration for other people interested in Bitcoin or Ethereum. Usually, this figure is estimated using the Fear and Greed Index, which investors use to make an accurate Ethereum price prediction.
Let’s analyze how media affects crypto and how much investors can rely on the information presented in applications when making the right crypto investment decision.
Media Sparks More Interest In Purchasing
These days, everyone is on social media, with people having multiple apps on their smartphones for communication, navigation, and even making payments. People use social media applications for entertainment and to follow directions regarding a certain problem.
Crypto investors also check out social media platforms like Reddit, Discord, and Telegram for daily communication and tips on trading and investing. Therefore, they’re all following similar trends and have the power to influence supply and demand by investing in specific assets to benefit from more liquidity, for example.
Still, people must be careful with how much they trust social media because it can nurture negative sentiments and rumors, causing panic and triggering FUD (fear, uncertainty, doubt) or FOMO (fear of missing out). Hence, they might be prone to buy or sell their cryptocurrencies based on little evidence of price changes.
Social media influencers are on the rise in numerous industries, making advertisement easier and more productive. Some time ago, they entered the crypto sector, promoting certain cryptocurrencies.
While some users disapprove of the movement since most influencers lack the proper knowledge of crypto investments, people can still seek appropriate advice from some creators.
Vitalik Buterin, the creator of Ethereum, is considered to be one of the first Web3 influencers due to his contributions on social media to decentralization and community-driven projects. If you invest in Ethereum, you can follow him for the latest news and insights in crypto, as he inspires worldwide investors.
His tweets also had the power to bring Solana back to life after a period of stagnation a few years ago. Vitalik Buterin stated his support for the blockchain, which influenced prices to increase quickly. So, reliable influencers like him can provide valuable insights for regular investors.
Finally, a great feature of social media is that it shows what’s on the other side of the screen, beyond price surges and successful investors, which include scams and frauds. Despite the blockchain’s high-security standards and educated community, scammers still find ways to make users offer them access in various ways that the media can showcase.
Everyone knows about giveaway scams nowadays, and most people can recognize the actors who make such a post a scam, especially when they notice patterns of bad grammar or poor web design. Still, there are numerous forms of scams, from blackmail and fake job listings to impersonation scams and phishing, each with different features.
Luckily, social media quickly unveils such scams, revealing to investors the risks they’ve been exposed to. Following the FTX fraud, investors started using self-custodial wallets to control and access assets without the involvement of a third party, such as an exchange.
The tricky thing about social media is that it never generally presents the same piece of information because it consists of dozens of communities with different views and perceptions about crypto. Therefore, depending on your community, you might access information regarding Ethereum’s risks, while other groups will discuss how they only invest in Ethereum.
Therefore, it’s best to form your own opinion and know when to add or subtract what you know, as information is as volatile as the crypto market. Developers create new technologies and ways to earn income, meaning supply and demand change, and investors must adapt to the newness.
Avoid trusting social media influencers or users who seem way too excited about a new project or encourage people to follow them in their investment journey. This might be a sign of one of the scams presented above.
Old-school investors might not be interested in what social media has to offer, considering how inconsistent it can be. At the same time, getting information from an array of apps is not only tiring but also confusing since there’s too much different data to leverage about crypto.
Therefore, some might say that seeking advice on social media is counterproductive, and the best resources consist of regular community websites and analytic tools that offer more objective insight into crypto.
Still, if you’re looking for inspiration, social media can be a catalyst for those wanting to join a group. Whether you’re a fan on Discord or Reddit, you can find communities through which you can access support and guidance for becoming a proper investor, as well as interact with people and communicate even behind the screens.
Therefore, choosing to be on social media or not for crypto advice is up to everyone, as it has pros and cons.
What Do You Think About The Media’s Involvement In Crypto Prices?
Cryptocurrency is an emerging form of exchange and trade, as worldwide users can easily access and use it thanks to blockchain technology. Its value is not constant, and factors like supply and demand and technological developments make it volatile, so prices fluctuate. Another factor contributing to fluctuations includes media coverage, such as social media apps where communities meet and discuss the development of a coin or are interested in becoming part of a group.
