Classification of Various Factors That Have Caused Major Fluctuations in Cryptocurrency Markets

Abstract

Cryptocurrency is a commonly used term in the current world, and the COVID-19 pandemic has indirectly increased the awareness and the investor base for cryptocurrencies. Various research has been conducted to understand the complex working structure of these investment options and to analyse the volatile nature of cryptocurrencies. There are multiple factors and triggers that impact the price movements in the crypto market. Classifying these factors would help streamline the process of analysing these factors for further studies. These factors cause both positive and negative impacts on the price fluctuations. Classifying the major factors under the period of impact will help understand each factor's role in the market. This classification would help in the diagnostic and prescriptive analysis of cryptocurrencies. In this research, well-cited and published research papers, journals, and articles have been studied to classify some of the major factors affecting cryptocurrencies carefully. A model has been created to easily comprehend the classification of factors based on time of impact. This model simplifies the understanding of the factors and would help conduct further analysis on these factors.