THE MARKET ACCORDING TO EVENTS and OCCURRENCES, This is the CURRENT market, which can have BULLISH and/or BEARISH behavior; it prevails for many reasons, some isolated or otherwise, but here I mention the most known:
1-. SENSITIVITY to NEWS: Cryptocurrencies tend to have high volatility and react quickly to relevant news, as the public and investors interpret this news as indicators of risk or opportunity.
2- INTERACTIONS with REGULATIONS:
Announcements of regulation or legal clarification can increase confidence or generate fear, affecting demand and supply.
3- ADOPTION and REAL DEMAND:
Agreements with institutions, adoption by businesses or mass users increase demand and can change the trend.
4- RISK and SECURITY:
Security incidents, hacks, or technological failures can generate perceived losses and massive sell-offs.
5-. MACROECONOMIC ENVIRONMENT and LIQUIDITY:
Changes in rates, inflation, market liquidity, and movements of major players influence price direction.
6-. CONTAGION EFFECT and VOLATILITY:
Cryptocurrencies share ecosystems and correlations; movements in one can drag others, amplifying the trend.
7-. SPECULATION:
A large part of the market responds to future expectations, so rumors and projections can move prices before actual events.