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Crypto Psycho: The Key To Cryptocurrency Prices | Hacked: Hacking Finance

Well it is finally official. We now know the secret driving force in the crypto market. It is not technical analysis, although this plays a role. It is not fundamental analysis, as understanding technology is a full time job. Most of us have at least one day job.  The singular most important role in determining crypto prices is mob psychology.

This is not just idle opinion, it is backed up by research from the folks at DataTrek. These guys have survey evidence that says that 52% of respondents are absolutely convinced crowd psychology is the main driver of prices.

In fairness, the survey covered only Bitcoin.  Would opinions have been any different if the question had been, what determines the price of  Ripple or EOS? What if ETH, the second largest cap crypto by market cap, had been substituted for Bitcoin?

You can bet your USDT the responses would have been pretty worthless guesses. After all, most people today think USDT stands for United States Department of Transportation. And Tether is the 10th largest crypto, so you may appreciate not everyone has a diversified portfolio.  But ETH, XLP and EOS rank in the top five spots with a combined value of more than $70 billion at current prices. Yet BTC is the face of crypto.

In order to be economical, most surveys suffer from limited sample size and opinions change over time.  Nevertheless, the folks at DataTrek provide us with real insight if we read between the digital lines.

If Bitcoin and ETH can manage to breakthrough technical resistance points, of which could happen anytime, the mob will be encouraged to follow (who wouldn’t?). Because many altcoins are so oversold and the volume needed to push these prices is so much less than Bitcoin, they should provide the highest returns. This presents huge opportunities for hedge funds and ETFs. And it is just as good for investors.

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Crypto Psycho: The Key To Cryptocurrency Prices | Hacked: Hacking Finance.