Supply and demand in the crypto market

Hi everyone hope you all are fine but here in our country something good not happening that's why yesterday I didn't write an article. A murder attempt happen on former cricketer and prime minister of Pakistan Imran Khan in his Azadi March but now he is safe and secure.

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I will write about it in my next article how it happens and which person is behind who is doing this but today I am going to write about supply and demand in the crypto market.

In any market transaction between a seller and a buyer, the price of a product is determined by market supply and demand. In perfect competition, there are many buyers and sellers, and prices reflect supply and demand. Companies make just enough to stay in business and nothing more. If they make higher profits, other companies will enter the market and reduce profits. 📈📉

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The quantity of a commodity demanded depends on the price of that commodity and potentially many other factors. The quantity demanded about the quantity in supply will largely determine the price of the commodity even in cryptocurrencies.

Supply and demand are equalized in the free market through the price mechanism. Crypto is not only affected by supply-demand, it can also be inferred that it plays an important role in setting the prices of cryptocurrencies.

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According to the principles of a market economy, the relationship between supply and demand equalizes at some point in the future. The demand for crypto market price supply is also a factor. However, other factors can affect too much like one tweet Elon. There is a big question about the cryptocurrency market price and demand-supply factor. However, in economics, it works according to the law of demand and the law of supply.

What is the demand for cryptocurrencies? It is not a commodity. The overall view of cryptocurrency demand is low in this bear market, suppose the price of BTC is 20000, and the demand is low, if the price of BTC increases, the demand will be more in a bull market. Likewise, we cannot say that the supply is increasing and we are seeing changes in prices. We cannot depend only on supply and demand.

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So,

There is no single way to predict a chart pattern, but you can also agree that there are some tokens that by studying their supply and demand patterns you can predict their price movement.

Like Bitcoin, supply and demand are very important aspects of determining the price.

Do supply and demand affect the price and trading of crypto in the same way that we have traditional finance, or do you think that cryptocurrencies are more affected by other factors?

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Is it appropriate to determine market direction using only supply and demand without technical analysis, especially chart patterns? 🤔

Does increasing or decreasing the supply of crypto assets affect the price proportionally considering the case of higher or unlimited supply tokens performing better than some fixed supply tokens?

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