Factors that influence the volatility and price of altcoins:
* Market Capitalization:* Altcoins with low market capitalization are usually more volatile than cryptocurrencies with large capitalization, such as Bitcoin or Ethereum. Lower trading volume means that even small changes in supply and demand can lead to significant price fluctuations.
* **Trading Volume:** Low trading volume makes altcoins more sensitive to large transactions. One large sale can cause a significant drop in price, while a large purchase can lead to a sharp increase.
* **News Background:** Positive news usually leads to increases, while negative news leads to declines. Rumors and speculation also play a significant role.
* **Social Media:** Viral posts or negative reviews can cause sharp fluctuations.
* Regulation:*
* Technological Factors:* Successes or failures in project development, security issues, competition from other projects
* Correlation with Bitcoin:*
* Overall Market Situation:* (bullish or bearish market)
*Liquidity:* Low liquidity means that it is difficult to quickly buy or sell an altcoin without a significant change in price
