Cryptocurrencies like Bitcoin, Ethereum, and many other alternatives are known for their notable price volatility. But what exactly drives these volatility?
Here's a comprehensive look at the different factors that influence cryptocurrency prices.
1. Market movement and liquidity:
- Supply and Demand: The price of cryptocurrencies depends mainly on the supply and demand landscape. When the demand for buying a cryptocurrency increases rather than selling it, the price goes up and vice versa.