The Invisible Hand: How It Affects the Crypto Market

Does it ever seem like financial markets move with no discernible rhyme or reason? Though some market fluctuations are random, others have a hidden logic to them. Many events can be explained through the economic theory of "the invisible hand,” a term originally coined to explain why capitalists might occasionally make decisions that benefit society as a whole. However, it also has some surprising applications for investments and crypto markets. To learn what the invisible hand is — and why it matters to you — we present this helpful guide.

Key Takeaways:

• The economic theory of the “invisible hand” states that a market will automatically adjust to meet the needs of the public.
• In terms of crypto trading, it refers to the idea that prices naturally reach an equilibrium to suit both buyers and sellers.

What Is the Invisible Hand Concept?

The invisible hand is an economic theory that states the market will automatically adjust to meet the needs of the public. In crypto trades, it means prices will naturally reach an equilibrium that suits both buyers and sellers.