What is affecting the rise and fall of the coin and stock markets? - Cryptocurrency exchange institutional platform order placement

In the cryptocurrency and stock market, what fundamentally influences the rise and fall of the overall market and individual coins and stocks?

Many people say it’s the economic fundamentals and the fundamentals of individual coins and stocks, plus the supply and demand relationship in the coin-stock market. But the more experienced coin-stock investors are aware that, although these statements are indeed reasonable, they are somewhat roundabout and somewhat exaggerated, far from the daily reality of the coin-stock market. Fundamentals and supply-demand factors can determine the long-term direction and foundation, but they absolutely cannot determine the immediate situation.

The trend analysis introduced in Chapter 2, Section 2.9 of this book reveals the underlying logic behind all fluctuations in the coin-stock market. The fundamental driving force behind the rise and fall in the coin-stock market comes from the profit-seeking and risk-avoiding behaviors of various capital sources, big and small. These are called the bulls and bears, and their confrontation is known as the bull-bear game. The constant fluctuations in the coin-stock market are caused by the collective battle between investors, which is the focus of trend analysis. However, the evolution of market trends is never natural or logical; it is always influenced by complex forces. Without understanding these forces, it’s difficult to comprehend the process of trend evolution and to objectively analyze and judge the complex movements in the coin-stock market.

In reality, the rise and fall of individual coins and stocks ultimately depend on capital-driven forces. Sometimes it’s driven by large institutional investors, and other times it’s the retail investors mobilized and guided successfully by big players. If there are no major players involved, the main force behind retail-driven movements, apart from occasional shocks from major news, is mostly just following the market’s ups and downs helplessly, or experiencing prolonged declines.

All the individual coins and stocks combined form the overall market. So, does this mean that big players are driving the market’s direction? In many cases, that’s indeed the case. Although big players are often scattered and rarely form a unified will, when you make moves in one coin or stock, and they do the same in another, collectively, they are constantly influencing the market’s trend. Moreover, there is a derivatives market for coins and stocks that can serve as a powerful tool for these super-large players to influence market movements. However, while this explanation has some truth, it remains superficial and one-sided, because there are other forces capable of influencing the emotions and behaviors of all investors, including big players, retail investors, and retail funds. These forces can significantly impact the market trend, and among them, the most important is the management level.

The actions of the management level can produce multiple effects, each extraordinary. In rare critical moments, due to special needs, the national will can influence the management level. At such times, the management becomes the embodiment of the national will and may take special measures to exert decisive influence on the coin-stock market. More often, the government does not intervene directly in the coin-stock market, but the management level is always influencing it, never absent for a moment. This influence is fundamentally realized through rules, but many times it is also exerted through actions.

Besides the management level and big players, other factors can also influence the movement of the coin-stock market.

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