Many cryptocurrencies exhibit significant volatility as the industry is still in its formative stage.

Quite a number of people are already using cryptocurrency in their daily lives, and the price of it will rise stronger the more people use digital assets to pay for goods and services, rather than just holding them (there's even a separate term for this phenomenon called 'holding' - from English, "hold").

Scarcity is also an important factor. For example, according to the Bitcoin protocol, a total of 21 million BTC can be mined. Thus, as more and more people enter the world of cryptocurrencies, the scarcity of Bitcoin increases, and the price rises.

Another factor affecting price fluctuations is large accounts that hold significant volumes of a particular cryptocurrency. They are also referred to as 'whales'. Any decision they make regarding the sale or purchase of cryptocurrency can influence the quotes. Additionally, passive holding of such huge reserves can itself impact the market.