The crypto market is governed by supply and demand. Here I explain how it works:



Factors that influence demand:
1. Adoption: more users and companies are using cryptocurrencies.
2. Regulations: changes in laws and regulations
3. Announcements: news and project announcements
4. Sentiment: mood of the investors

Factors that influence the supply:
1. Mining: amount of cryptocurrencies mined
2. Sales: amount of cryptocurrencies sold by investors
3. Burn: destruction of cryptocurrencies (some projects burn them to reduce the supply)

**How supply and demand are related:**

- High demand + low supply = Price rises
- Low demand + high supply = Price drops

Do you want to know how to apply this to your investments? Follow me or give me a like.
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