Why do the prices of coins fluctuate when the fundamentals are frequently fulfilled?
1. The market has reacted in advance
Market participants usually react to known information in advance. When a good news is announced, the price may have been adjusted in the previous expectations. This behavior pattern of "buy expectations, sell facts" means that when it is actually announced, the market may not fluctuate much.
2. Liquidity and trading volume
The liquidity of the cryptocurrency circle is not as good as that of traditional markets, especially for some small assets. Even if there is good news, if the market is not active, large buy orders will hardly drive prices up.
3. Macroeconomic environment
The global macroeconomic environment has a profound impact on the prices of various coins. For example, when the global market faces uncertainty, such as interest rate changes, political risks, or expectations of economic recession, even if various coins have good news, investors may turn to safer assets, causing the price of the coin to fall instead of rise.
4. Technical pressure
Even if the fundamentals show good news, the resistance and support levels in technical analysis will also affect the price. Many investors use technical indicators as trading signals, and these technical pressure points may hinder further price increases.
5. Market sentiment and psychological factors
Irrational market behavior often leads to a divergence between prices and fundamentals. Panic selling, overly optimistic speculation, etc. can distort market prices in a short period of time, so that the fundamental benefits are not reflected in the real-time currency price.
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