What Are the Factors Influencing the Volatility in Crypto Prices?
Volatility is a natural feature of the crypto industry. It can be healthy, creating opportunities for profit, or extreme, causing rapid price shifts. Early investors and traders have witnessed astonishing volatility, with bear markets driving even established coins like Bitcoin and Ethereum to historical lows.
Understanding how crypto prices work can be challenging due to the diversity of coins, applications, and blockchains that contribute to these changes. The outside world also affects crypto. Therefore, users must engage with these assets with caution, using proper tools and taking time to research the market.
This article explores some of the many factors that influence the prices of crypto assets.
1. Supply and Demand
Supply and…