“Value is established by the market - the consensus of what investors are willing to pay.”
Non-answer. How do they arrive at the value they are willing to pay. Why $50,000 instead of $10?
“ Non-answer. How do they arrive at the value they are willing to pay. Why $50,000 instead of $10?
………
It is the only correct answer.
It happens exactly as the consensus price for a share of Amazon stock is arrived at. Consensus means that buyers and sellers together agree on a concensus price they are willing to transact the trade at. It is a point in time.
Every investor is making an individual decision of what they are willing to pay, based on the criteria they value. There are as many strategies, valuations, and beliefs as there are investors.
It is what makes a market, since someone has to be willing to take the other side of your buy or sell.
A market is the single best pricing mechanism for valuing an asset - physical or digital.
The current transaction price is the consensus price that a buyer and seller agree upon. Each believes he is receiving the value he prefers.
Not every owner or want-to-be owner/seller participates at the current transaction price, because they believe the asset is worth more or less than the current price.
Sometimes, at fear/greed extremes, markets become more or less valued than the current prices. It happens in all markets.
It is happening in stocks currently too.
I’ve pointed out on these threads that there is a mania in crypto similarly to the dot com bull market in ‘99. It must correct back to the long-term trend line.
And so it is doing.
Best
That's easy.
You trade the charts and the technicals.
What else is there in the crypto game?
Just pure momentum - occasionally disrupted by pure speculation.