The prices of crypto assets are greatly affected by online information flows. Investors saw this week how fake news can sometimes cause a token’s market value to explode even if it is for a short time. The effects of genuine news tend to last longer. However, investors need to know which stories to focus on when trading.
Research has shown that three types of news announcements have a consistent impact on crypto prices: new partnerships, staking program launches, and exchange listings. Although there haven’t been any significant price movements recently, two crypto assets were greatly impacted by last week’s listing news and staking news.
Specifically, the price of Terra’s LUNA token was 61.17% at peak, while Raydium’s RAY price rose 52.65% over the next few days after Binance launched staking.
It begs the question: Could those who don’t have the inside scoop make a profit from these events?
The early bird always wins the worm
LUNA’s local peak was around $34 in the early part of the week. It fell to a local low just above $27 by Sept. 8. Bitfinex then posted a listing announcement to its website.
LUNA price action. Source: Cointelegraph Markets Pro
Instantly, the asset’s value exploded with rapid growth. It jumped from $27 to $30.92 in just six hours. This was only the beginning.
Listing announcements can often spur the price in two phases. First, there is the pure effect from the news and then comes the impact of the newly added liquidity. This appears to be true for LUNA’s price action. The upward trend has slightly slowed down after the initial surge that followed the announcement. The momentum continued to be strong for two more days. Asset’s prices reached $43.71, an increase of over 60% since the announcement.
The impact of major staking announcements tends to be more concentrated, because excited market participants rush for the asset as soon as an attractive staking opportunity opens.
Price action for RAY Source: Cointelegraph Markets Pro
RAY’s price rose after Binance announced its RAY staking programme with an APY up to 17.69%. The asset exploded from $10.49 up to $16.01 within 24 hours.
Investors are able to access real-time data in order to stay ahead of the game
The one thing that both price-moving announcements have in common is the fact that Markets Pro subscribers, Cointelegraph’s data intelligence platform, were alerted as soon as they were published in primary sources. Cointelegraph’s industry-grade alert system, NewsQuakes(tm), was able to make this possible. It also allows Cointelegraph’s journalists to quickly discover news leads.
NewsQuakes ™ are automated notifications driven an AI algorithm that monitors thousands information sources to deliver potentially market-moving info to members, often in seconds. The NewsQuakes(tm), alerts are highlighted by gold circles in the charts — notice how they always precede upward price movements.
Retail traders can be greatly empowered by a tool that alerts them to events that have historically reliably moved digital assets prices in a market that reacts quickly to news.
Cointelegraph is not an investment advisor, but a publisher of financial information. We don’t offer personalized or individualized advice on investment. Cryptocurrencies can be volatile investments that carry high risk, including total and permanent loss. Past performance does not necessarily indicate future results. All figures and charts are accurate at the time of writing, unless otherwise stated. Strategies that have been tested in real life are not recommended. Consult your financial advisor before making financial decisions.