Catalyst

A catalyst is an unexpected event that causes a security's price trend to rapidly change (up or down). News, earnings reports, government announcements, natural catastrophes, etc. are all examples of catalysts in trading. The impact of a catalyst can be short-term or long-term, depending on the magnitude of the news and the prevailing market sentiment.

The same logic applies to cryptocurrencies (excluding earnings reports): replace security with cryptocurrency.


Related articles

No items found.