The Impact of Business Communication on Crypto Market Prices

Abstract

Blockchain technology has gained increased prominence in recent years, as more people follow developments in crypto-market prices, and the business communication of blockchain developers can presumably also influence price movements. In many cases, it is said that the market has already priced in the value of a given cryptocurrency in advance, something that is very likely driven by business communication. This research aims to examine the main channels of price-formation mechanisms from the perspective of business communication, such as roadmap scheduling, the relationship between sentiment and price, credibility, and who communicates the news and how consistent that communication is in a given case. In addition, the study investigates the typical channels through which forks affect prices, such as fundamentals, uncertainty, and volatility. Based on the research results, it can be stated that if communication was accurate and a hard-fork upgrade genuinely improved the blockchain as developers announced, this may support price appreciation in the long term, while the effect is less noticeable in the short term. In the case of a soft fork, price increases are less perceptible because they involve a smaller-scale modification of the blockchain’s structure.