Market Mover
A market mover is an event capable of influencing the performance of a market, causing a movement in the price of financial instruments within it.Â
The elements capable of influencing the market are quite varied and can be a person or an organisation, macroeconomic data, unexpected events or political speeches.
All financial markets, including the cryptocurrency market or the stock one, are in fact conditioned by external factors.Â
But what are the main market movers?
We can distinguish three types of market movers:
- Economic indicators: statistical data used to describe the economic performance of a country or company.
An economic indicator, for example, might refer to the Gross Domestic Product (GDP) of a country, or unemployment data. - Financial indicators: elements describing the performance of a company or market.
The consumer price index (CPI), for example, is a financial indicator that describes the US inflation rate and has a great influence on central bank decisions. - Geopolitical factors: events such as the collapse of a government, the victory of a particular party in elections or the issuing of new laws are capable of affecting the price trend of a market.
Not to mention that physical persons or particularly influential companies, such as large cryptocurrency exchanges or market leaders in this industry, can also have a strong impact on the markets.
Sometimes these entities are called Crypto Whales: individuals or organisations that hold a large amount of cryptocurrencies and are able, by selling or buying large sums, to move the price of that market even heavily.