William Faria

By William Faria
In the world of investing — especially within the crypto universe — one question is constant: why do asset prices go up or down?
To answer this, we need to go beyond intuition and look into the fundamentals of macroeconomics, microeconomics, and the models used by artificial intelligence and renowned global experts to forecast market movements.
1. Economic Constants: Universal Laws of Supply and Demand
According to economist Paul Krugman (Nobel Prize in Economics), “prices adjust to the point where supply meets demand.”
This is the foundation of any market — and crypto is no exception.
When more people want to buy a crypto asset (high demand) and the supply is
limited (like Bitcoin, with a cap of 21 million units), the price tends to rise.
When the opposite happens (more sellers than buyers), the price tends to fall.
This logic applies to traditional currencies as well as tokens, NFTs, and DeFi projects.
2. Macroeconomic Variables: The Global Landscape
Macroeconomics examines broad factors that impact the entire crypto market, such as:
Interest rates in the U.S.: When the Fed raises rates, risk assets (like cryptocurrencies) tend to fall.
Inflation: In countries with high inflation (e.g., Argentina), the use of stablecoins increases, affecting demand.
Geopolitics: Wars, sanctions, and crises (like Russia/Ukraine) trigger a flight to so-called safe haven assets (such as BTC).
Economic cycles: During recessions, investors typically reduce exposure to crypto.
📚 Ray Dalio, founder of Bridgewater Associates, always emphasizes:
“The economy works in cycles. Understanding the cycles helps predict the markets” — and this applies to crypto as well.
3. Microeconomic Variables: The Case of Each Project
Microeconomics looks at the individual fundamentals of each asset:
Tokenomics (economic model of the coin): Total supply, token burns, staking mechanisms.
Team and development: Projects with transparent teams, frequent updates, and strong partnerships tend to perform better.
Real-world adoption: The more utility a token provides (payments, gaming, smart contracts), the higher its value potential.
Competition: The emergence of similar projects can affect a crypto asset’s price.
4. The Role of Artificial Intelligence in Market Forecasting
AI platforms like OpenAI, Google DeepMind, and BloombergGPT are already modeling market behavior using:
Historical price data (technical analysis)
Economic news and sentiment analysis
Network indicators (on-chain data)
📘 Robert Shiller, author of Narrative Economics, argues that human behavior — and the stories we tell — influence markets more than traditional models can predict.

This is something AI is just beginning to grasp at scale.
5. Conclusion: Constants, Variables, and Awareness
Understanding why assets rise or fall is not just a matter of "luck" or "manipulation". It involves economic science, data, market sentiment, and increasingly, intelligent algorithms.
✅ The constant is: supply and demand.

🔄 The variables are: global context, asset fundamentals, and future expectations.

🧠 Artificial intelligence helps process all of this — but the final decision is still human.

And you, investor or enthusiast — what do you believe is more important today: fundamentals or market sentiment? Let’s talk.
#crypto #binance #bitcoin #macroeconomics #cryptoassets #altcoins #AI #blockchain #financialeducation #investinyourself

William Faria
In the world of investments, especially in the realm of cryptocurrencies, one question is constant: why do assets rise or fall in price? To answer this, we need to go beyond intuition and look at the fundamentals of macroeconomics, microeconomics, and the models that artificial intelligences and global experts use to predict market movements.

1. The Economic Constants: Universal Laws of Supply and Demand
According to economist Paul Krugman (Nobel Prize in Economics), "prices adjust to the point where supply meets demand." This is the basis of any market — including crypto.